3 hidden costs of financial stress you may not have considered
3 hidden costs of financial stress you may not have considered
Carla Corral and Candace Quevedo
Carla Corral and Candace Quevedo
Apr 30, 2025
Apr 30, 2025
Everything may seem fine on the surface. Employees show up, do their jobs, and smile at lunch. But many are carrying something you cannot see: Financial stress.
More and more Norwegians are feeling the pressure of rising prices, unexpected expenses, and a salary that doesn’t always stretch far enough. It is easy to think people should manage their finances on their own – but when stress becomes widespread, it affects work too.
According to Storebrand (Pengevekstedet, 2022), over half of Norwegians say they often or occasionally run out of money before the next payday. Among people in their 30s, that number jumps to 64%.
Here are three hidden costs of financial stress that may impact more than you think – including how you build a healthy, productive workplace.
Everything may seem fine on the surface. Employees show up, do their jobs, and smile at lunch. But many are carrying something you cannot see: Financial stress.
More and more Norwegians are feeling the pressure of rising prices, unexpected expenses, and a salary that doesn’t always stretch far enough. It is easy to think people should manage their finances on their own – but when stress becomes widespread, it affects work too.
According to Storebrand (Pengevekstedet, 2022), over half of Norwegians say they often or occasionally run out of money before the next payday. Among people in their 30s, that number jumps to 64%.
Here are three hidden costs of financial stress that may impact more than you think – including how you build a healthy, productive workplace.
Lower focus and reduced performance
Lower focus and reduced performance
When employees are stressed about finances, it is hard to stay fully focused at work. Their thoughts drift to bills, grocery budgets, and credit cards debt – even during a client meetings or during an important delivery.
This is often referred to as "presenteeism" – you are physically at work, but mentally somewhere else. It leads to lower productivity, more mistakes, and reduced quality over time.
As many as 84% of employees say that they worry about their finances during work hours, and 1 in 3 spend four hours or more per week doing so.
What this means for you as an employer: Weaker team momentum, lower engagement, and higher friction – not because people do not want to do a good job, but because financial worries take up a lot of space. Over time, it undermines motivation and makes it harder to meet expectations.
When employees are stressed about finances, it is hard to stay fully focused at work. Their thoughts drift to bills, grocery budgets, and credit cards debt – even during a client meetings or during an important delivery.
This is often referred to as "presenteeism" – you are physically at work, but mentally somewhere else. It leads to lower productivity, more mistakes, and reduced quality over time.
As many as 84% of employees say that they worry about their finances during work hours, and 1 in 3 spend four hours or more per week doing so.
What this means for you as an employer: Weaker team momentum, lower engagement, and higher friction – not because people do not want to do a good job, but because financial worries take up a lot of space. Over time, it undermines motivation and makes it harder to meet expectations.
Higher turnover – people leaving before they really want to
Higher turnover – people leaving before they really want to
When money becomes a constant source of worry, changing jobs feel like an easier fix. Maybe for a slightly higher salary, a shorter commute, or just a greater sense of stability. It's rarely about disloyalty – it's about need.
Employers offering real-time pay have reported up to 50% lower turnover compared to employers who only have "old pay cycles."
What this means for you: Losing employees is expensive. According to SHRM, replacing one employee costs on average 6–9 months' salary. You lose experience, continuity, and often team energy – which can hurt both morale and performance in an otherwise strong work environment.
When money becomes a constant source of worry, changing jobs feel like an easier fix. Maybe for a slightly higher salary, a shorter commute, or just a greater sense of stability. It's rarely about disloyalty – it's about need.
Employers offering real-time pay have reported up to 50% lower turnover compared to employers who only have "old pay cycles."
What this means for you: Losing employees is expensive. According to SHRM, replacing one employee costs on average 6–9 months' salary. You lose experience, continuity, and often team energy – which can hurt both morale and performance in an otherwise strong work environment.
More absenceeism and unpredictable operations
More absenceeism and unpredictable operations
When financial stress becomes chronic, it also starts to show up physically: Headaches, sleep issues, burnout – and eventually sick leave.
It can also lead to practical challenges: Maybe the bus ticket is too expensive, or someone needs to stay home to take an extra shift somewhere else.
What does this lead to? More gaps in the schedule, more last-minute changes, and more pressure on the people who are at work. This lowers overall morale and demands extra resources to create short-term fixes.
When financial stress becomes chronic, it also starts to show up physically: Headaches, sleep issues, burnout – and eventually sick leave.
It can also lead to practical challenges: Maybe the bus ticket is too expensive, or someone needs to stay home to take an extra shift somewhere else.
What does this lead to? More gaps in the schedule, more last-minute changes, and more pressure on the people who are at work. This lowers overall morale and demands extra resources to create short-term fixes.
What can you do?
What can you do?
There are things you can do that actually make a difference. Many employers have already started offering flexible solutions to help employees gain more control – and reduce stress in their work life.
Simple access to earned wages – when they need it – is one smal change that can have a big impact. It doesn't mean paying more. It just means giving smarter access to what's already been earned.
A European survey shows that 42% of employees say they would perform better and deliver better customer service if they had access to their pay when they needed it.
Some employers combine real-time pay with financial guidance, budgeting tools, or discounted transport. Others offer personal finance coaching or invest in easy-access mental health services. More predictable work schedules can also reduce stress and increase day-to-day stability.
At the core, it's about one thing: Making it easier for employees to manage everyday life. Over time, this reduces the financial challenges that show up in the workplace as stress, absence, and turnover.
It is not a quick fix – but it is a good place to start.
Financial stress might now show up on your team calendar – but it affects everything from motivation to attendance.
Small actions can make a big difference. Not just for your people, but for your business too.
Curious how other employers are using flexile pay in practice? See how it works with Celeri.
There are things you can do that actually make a difference. Many employers have already started offering flexible solutions to help employees gain more control – and reduce stress in their work life.
Simple access to earned wages – when they need it – is one smal change that can have a big impact. It doesn't mean paying more. It just means giving smarter access to what's already been earned.
A European survey shows that 42% of employees say they would perform better and deliver better customer service if they had access to their pay when they needed it.
Some employers combine real-time pay with financial guidance, budgeting tools, or discounted transport. Others offer personal finance coaching or invest in easy-access mental health services. More predictable work schedules can also reduce stress and increase day-to-day stability.
At the core, it's about one thing: Making it easier for employees to manage everyday life. Over time, this reduces the financial challenges that show up in the workplace as stress, absence, and turnover.
It is not a quick fix – but it is a good place to start.
Financial stress might now show up on your team calendar – but it affects everything from motivation to attendance.
Small actions can make a big difference. Not just for your people, but for your business too.
Curious how other employers are using flexile pay in practice? See how it works with Celeri.
See also:
See also:
Load more
Load more
Load more