Financial well-being and productivity at work: the effects of financial stress in the workplace

Abstract

The purpose of this paper is to first examine the financial well-being of Morocco labor force and then to study the effects of financial stress in the workplace. Financial well-being is a multidimensional concept, which explains the complexity and difficulty of measuring it. Therefore, our evaluation method is based on the indicators of the FINDEX 2021 database. Furthermore, the examination of these statistics and the existing literature in the field involved the development of the hypothesis that financial stress affects productivity at work. A questionnaire is designed and distributed online to employed Moroccans to study the effects of financial stress on their productivity and well-being at work, and therefore to affirm or refute our hypothesis. A total of 83 completed questionnaires were analysed using the SPSS tool. The results show to what extent financial well-being of Morocco labor force is low (based on FINDEX 2021’ statistical indicators). The results highlight also their disability to cope with future financial commitments, contingencies and financial shocks, which explains their financial stress. Finally, this study shows that low levels of financial well-being, financial stress and financial strain are associated with lower productivity at work, more absenteeism and less motivation in the workplace. Furthermore, they have a negative impact on the employees’ physical and mental health. This study have implications for employees, as well as for businesses or employers in general.

Keywords: Financial well-being, financial stress, workplace, productivity, impacts.

JEL Classification: G51, G53, M5, I3

Paper type: Empirical research