USA Today
Money Worries Hinder Job Performance: By Stephanie Armour

With gas prices rising, health costs soaring and consumer confidence taking a dive, many employees are struggling with financial woes that threaten job productivity.

Workers with money woes have worse health, spend more time at work on the issue and also are absent more frequently, research shows.

One in four American workers are seriously distressed about their personal financial situation, according to a 2005 review of surveys and published research studies by E. Thomas Garman, professor emeritus at Virginia Tech University, and other researchers.

The report, Financial Distress Among American Workers, found up to 80% of financially stressed workers spend time at their jobs dealing with or worrying about money issues, with workers in lower-paying jobs experiencing higher stress. Researchers also noted financial stress affects all income levels.

"I'd gotten myself into a real mess. I'd run up 12 charge cards," says Mary Sousa, 61, of Indian Harbor Beach, Fla., a tour guide who went through a credit-counseling program when she was $25,000 in debt. She'll be debt-free in March. "It was awful, creditors calling me at work. It's amazing I didn't lose my job."

How worry affects job performance:

Lower productivity. Money worries are linked to more absenteeism and productivity woes, as employees dodge bill-collector calls at work, use faxes for personal business and make more personal calls. It can also spur turnover, as employees in need of more money look for new jobs.

"What we're seeing right now is a dangerous combination of higher costs, lower confidence and a still shaky employment outlook," Jennifer Openshaw, CEO of Los Angeles-based Openshaw's Family Financial Network, a provider of financial services and self-help products, says in an e-mail.

Health problems. People who contacted a credit-counseling agency who were in poor health had the highest financial stress levels, according to a 2005 survey of more than 3,000 debtors. The study was done by Garman and three other researchers. High blood pressure, weight gain and insomnia were some of the examples.

"It can lead to substance abuse, alcohol abuse," says David Jones, president of the Fairfax, Va.-based Association of Independent Consumer Credit Counseling Agencies.

Some employers are rolling out programs to assist employees with their finances, including seminars, brown-bag lunches on such topics as debt management and handing out financial-planning materials. But many firms do very little, Garman says.

USA TODAY, October 5, 2005, B1