Personal Financial Wellness and Worker Job Productivity
Thoughts
Based on Stress Process Theory, explains that financial stress refers to stresses caused by financial situations, including personal and family money matters.
Connects with: @peirce1996
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joo1998 - p. 9
Financial stress referred to the stress that is caused by financial situations including personal, family, and other financial circumstances.
joo1998 - p. 21
Financial stress is hypothesized to be an important source of distress in people’s lives because many fundamental activities of daily life and many chances to succeed are closely related to current levels of personal financial resources (Pearlin & Radabaugh, 1976).
joo1998 - p. 23
Sporakowski (1979) discussed financial stress events as related to one’s stage in the life cycle. In the beginning family stage, debts from schooling, the wedding, and establishing a home are potential financial stressors. Having a child is a big financial stressor. Having children includes the expenses of food, clothing, transportation, education, college, wedding, and helping out with gifts or loans.
joo1998 - p. 47
The conceptual model of personal financial wellness and worker job productivity developed by Joo is presented in Figure 4. This model was based on The double ABCX Model by McCubbin and Patterson (1983). The ABCX factors are in parentheses.
joo1998 - p. 50
McCubbin and Patterson (1983) defined stressor as “a life event or occurrence in or impacting upon the family unit which produces change in the family social system” (p.88). Stressors are agents of stress (Shinn, Rosario, Morch, & Chestnut, 1984). Financial stressors come from three different sources: personal, family, and financial situation. Family events include a number of life cycle events. Marriage, birth of a child, child goes to college, retirement of family member, job loss of family member, divorce or separation from spouse, and death are related to the employee’s personal financial wellness
joo1998 - p. 50
Personal financial wellness is conceptualized as a level of financial health. It includes the satisfaction with material and non-material aspects of one’s financial situation, perception of financial stability, including adequacy of financial resource, and material and nonmaterial financial resources that each individual possesses.
joo1998 - p. 51
A subjective perception scale can measure subjective perception of personal finance. A subjective perception scale includes a respondent’s perception of cash management, credit management, income adequacy, personal finance management, and consumer shopping skills.
joo1998 - p. 51
A behavioral scale can measure behavioral assessment of personal financial management in cash management, credit management, income adequacy, personal financial management, and consumer shopping skills.
joo1998 - p. 52
When examining one’s financial wellness status, satisfaction with his or her financial status also needs to be determined, because satisfaction or dissatisfaction with one’s personal financial situation impacts one’s financial stress level
joo1998 - p. 52
The buffering system hypothesis asserts that social support protects people from the deleterious effects of stress on their life functions
joo1998 - p. 53
Personal finance employee education is information, education, and services provided by an employer to help its workers make informed decisions about employer-sponsored retirement plans, other employer furnished fringe benefits, credit and money management, and consumer protection
joo1998 - p. 53
Personal financial wellness and the level of financial stress produce outcomes for personal and work life. Negative and positive outcomes exist in this model. Personal outcomes include some negative outcomes and positive outcomes.
joo1998 - p. 53
Workers who have high levels of financial stress and low levels of personal financial wellness produce negative outcomes in personal and family life. Research has indicated a relationship between personal financial stress and backache, alcoholism, gambling, and drug abuse
joo1998 - p. 54
ositive outcomes through workplace financial education include a lower financial stress level, less stress related illness, fewer poor financial behaviors, better financial wellness, and formation of a desirable personal financial portfolio.
joo1998 - p. 54
From the worker’s point of view, some direct negative effects of high levels of financial stress and low levels of personal financial wellness are: increased absenteeism, lowered productivity from poor communications, lower job performance, delayed promotion due to bad job performance and productivity, lessening of the quantity and quality of work, increased accidents, greater turnover, and lessening of work efficiency through tardiness, lowered ability to get along with fellow workers, mood swings, and unpredictable behavior.
joo1998 - p. 55
Some effective outcomes can be produced from financial education. Direct savings for workers include reduced absenteeism, improvement in attendance, reduced stress level, reduced accidents, improved productivity and job performance, reduced inconvenience from wage garnishments, and increased satisfaction with work
joo1998 - p. 61
Financial stress was measured with one item on a 10-point scale that asked how the respondent rated his or her stress level.
joo1998 - p. 61
Job productivity was measured by self-reports of productivity changes from last year, performance rating from boss, absenteeism during the past year, worker’s compensation claims during the past three years, and time used for personal finance matters in the workplace.
joo1998 - p. 62
he desired workplace financial education programs were measured with the following question: “In which of the following financial education programs would you participate, if available in the future (please circle all of interest)?”
joo1998 - p. 63
The population for this study was clerical workers of a large employer in mid-eastern state. The employer, located in a rural community, has 5,000 workers including 2,800 part-time and 2,200 full-time workers. The workforce ranges from 800 highly educated professionals to 1,000 clerical support staff, and to 400 lower-level wage workers performing maintenance and upkeep. From the total of 2,200 full-time workers, all 966 clerical workers were included in the sampling frame.
joo1998 - p. 74
Correlation and multiple regression analysis were used to explore the personal financial wellness profile change according to the demographic characteristics (research question 2). Correlation was examined to examine the relationship between financial stressors and personal financial wellness (research question 3). Multiple regression analysis was used to examine the relationship between personal financial wellness and worker job productivity (research question 6).