Employees are bringing their financial issues to work, and it's affecting their employer's bottom line.

Workers' lack of financial knowledge and the distress that has resulted is leading to employee productivity drains, turnover and increased benefits cost, according to a new white paper released Wednesday by GuideSpark, a company that delivers Web-based HR software.

The study found nearly 80 percent of financially distressed employees spend time at work dealing with financial issues. Plus, more than 92 percent of employees report losing sleep over money issues and financial stress is leading to illness, absenteeism and increased health care costs.

"Employees are bringing their personal financial issues into the workplace and affecting company goals," said John Wolff, vice president of financial education, in a press statement. "Financial distress can drain 12 to 20 hours of an employee's productive time at work--each month. It is definitely a problem for employers."

GuideSpark says companies that implement financial wellness initiatives can expect a return on investment of more than 3-to-1.

Financial education in the workplace has been largely limited to employee benefit communications, with "lackluster" results, according to GuideSpark. The company cited a recent Colonial Life survey of HR managers that shows only 21 percent think their employees have a good understanding of their benefits; 5 percent think their employees don't know anything about them.

The company says employers must implement much more effective programs that "not only address workplace benefits but effectively tackle the broader issue of personal financial security and planning."

The Pension Research Council agrees. The council released a working paper this month emphasizing the importance of employer-provided financial literacy programs, especially for workers nearing retirement.

"Employers have a vested interest in their employees making good retirement choices that facilitate their transitions from the firm. For this reason, workplace financial education is one of the best places for older workers to enhance their financial literacy," write Robert L. Clark and Melinda S. Morrill, authors of the council's report. "Survey evidence indicates that participants in these programs can and do learn and on the basis of their greater understanding of their retirement programs, employees modify their retirement plans. Workers appreciate and value these programs and give their employers credit for providing this employee benefits. For employers, providing high quality programs can be a good business decision."

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Study: Employee financial stress hurts company performance

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