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Financial Stress Affects Work Productivity, Says AKPK Study

Financial Stress Affects Work Productivity, Says AKPK Study

26% of Malaysians surveyed go through financial stress which directly affects their work performance.

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In the current economy, having one stable job might not be enough for an individual to sustain decent financial stability.

The trend of both husband and wife having to work to support their family has become a norm.

A recent study by the Credit Counselling and Management Agency (AKPK) on how financial stress affects the productivity of work revealed that 26% of Malaysian working adults go through financial stress.

This was revealed in a research report titled From Nine to Five: Navigating Employees’ Financial Well-Being at the Workplace.

The Methodology

The research which was done in the year 2020 was based on a survey which was conducted with 900 working Malaysians from the ages of 18 to 64, both male and female.

The key factors in the survey were their job satisfaction, productivity and employee loyalty.

These 900 applicants were chosen from various job sectors and occupations. The 900 respondents also have a salary ranging from RM1,500 to above RM10,000.

The demographic of the respondents was spread out across Malaysia.

The Findings

As stated above, 26% of working adults face financial stress and difficulties and 65% of them have agreed that their financial stress does affect their work productivity.

This data has proven that financial well-being and work productivity are correlated.

According to the Chief Executive Officer (CEO) of AKPK Azaddin Ngah Tasir, employees with low financial well-being have unsatisfactory work performance.

The results of the report show that 70% of employees with low financial well-being show poor performance compared to 78% of the respondents with high financial well-being.

The study also showed that financial worries were the biggest distraction for employees, even more so than family problems and health issues, which ultimately leads to poor work performance and decreased profits for companies.

“Imagine how much productivity we could generate if that 26% figure could be brought down to a lower level?” asked Azaddin.

The report also shows that financial well-being affects employee loyalty in a company.

According to Azaddin, 91% of employees who have high financial well-being will show loyalty to their company.

Meanwhile, 89% of respondents with poor financial well-being are actively looking for a new job.

However, Azaddin pointed out a significant gap in financial education.

Although 74% of respondents expressed an interest in finance classes, only 48% of employers offered such programs.

The Role Of Employers

Meanwhile, Deputy Health Minister Datuk Lukanisman Awang Sauni emphasized the crucial role employers play in fostering financial well-being among their employees.

Lukanisman highlighted that this can be achieved by providing programs and support to help employees effectively manage their finances, which in turn can reduce stress and enhance their quality of life.

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