“How financial debts affects overall performance of an employee”

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“How financial debts affects overall performance of an employee”

Management and Corporate Leaders always want to perform their companies at their optimal levels. One of the primary ways of doing this is by ensuring that their employees work in stress free environments at their workplace, however sometimes despite company’s best intentions employees’ personal problems start to affect their job performance. Research shows that one of the primary contributors of employee’s personal problems are their unmanageable financial problems and stress & anxiety occurred due to these personal financial problems.

Employees with unmanageable financial debt and poor financial situations tend to underperform compared to the employees who don’t have any debt or poor financial situations. These types of employees are often observed to be also less concentrated at work because their mind is preoccupied, and they tend to focus more on their personal financial problems. Let us all see How financial debts affects overall performance of an employee.

Effect of unmanageable debt on Employee Productivity and Company’s performance:

Mental conflicts in concentrating between office work and personal life can lead to employee’s withdrawal, which in turn may lead to decreased productivity at work and may manifest in following symptoms.

As the number of poor financial choices increase for an employee, the resulting consequences have an increasingly negative effect at work. Research shows that financially unwell employees or employees who are in unmanageable debt, waste at least 20 hours a month in dealing and handling their personal financial issues while they are at work. These employees prove costly to the company as they are unable to perform at their 100 percent efficiency. Employees who have managed their finances well proves to be among your best performing employees.

Conclusion.

Due to the stress caused by unmanageable debt situations your employee may not be able to be innovative and think out of the box. When financial stress is reduced through corrective interventions among employees through proper counseling, then the employee and company both can reap the benefit of increased productivity and efficiency, which in turn will lead to meeting the long-term targets and objectives of the organization.

Disclaimer

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. City Credit Management LLP is not liable for any decision arising out of the use of this information.

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