This week’s article, “Wealth After an IPO Can Cause Employees to Go” by Susan Hauser details the problems companies such as Google and Croupon have been experiencing due to recently launching an initial public offering. Employees of these companies who have consequently acquired a great deal of wealth in a short period of time can experience what is called, “Sudden Wealth Syndrome.” These employees have serious problems dealing with their abrupt, increased levels of income. Sudden Wealth Syndrome can cause overwhelming feelings of stress that may lead to additional problems for these individuals such as leaving their job, or even suicide.
That being said, financial stress is a serious issue for employees everywhere, no matter what side of the spectrum they may be on. Recent studies have shown that among employees making $75,000 a year and higher, 37% are living paycheck to pay check, and 48% are “very concerned” about making ends meet. Similarly, debt reduction is the number one financial goal for employees making less than $100,000 a year, even outranking saving for retirement. It’s no wonder that a financially distressed employee spends up to 20 hours of work time a month dealing with personal financial problems.
Organizations should consider options such as Financial Wellness Programs for their employees. These programs can help increase productivity levels in the workplace by providing practical solutions to everyday financial stressors. Customized resources for a full range of personal and job-related financial issues can be supplied such as certified financial coaches, interactive educational courses, financial calculators and webinars. These programs are extremely cost-effective, leaving organizations with a more healthy, stress-free, and productive workforce.
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