Financial stress affecting job performance, AKPK report reveals

Financial stress affects 26% of employees in Malaysia, with 65% reporting reduced job performance and an impact on employee loyalty.
By: | July 9, 2024

Organisations in Malaysia face a silent productivity drain, with a significant portion of the workforce struggling with financial stress.

In a report from Agensi Kaunseling dan Pengurusan Kredit (AKPK), a credit counselling service, it was found that 26% of working adults in Malaysia experience financial stress. Even more concerning is the finding that 65% of those experiencing financial stress report a negative impact on their job performance.

“AKPK’s research substantiates that money and mental wellbeing are interrelated,” said Azaddin Ngah Tasir, CEO of AKPK. “Imagine how much productivity we can secure if we could bring that 26% down to a much lower percentage.”

The report, titled From Nine to Five: Navigating Employees’ Financial Wellbeing at the Workplace, also shed light on the correlation between financial wellbeing and employee loyalty. According to the findings, 70% of employees with low financial wellbeing were low performers, while 78% of those with high financial wellbeing exceeded productivity expectations.

READ MORE: CHRO Malaysia 2024 to address key HR strategies amid new HR roadmap

Furthermore, loyalty plays a significant role. Azaddin revealed that 91% of employees with high financial wellbeing remained loyal to their organisations. In contrast, 89% of those with poor financial wellbeing actively sought new job opportunities.

Despite these benefits, there remains a gap in financial education. While 74% of working adults in the country expressed interest in financial courses, only 48% of organisations offered such programmes. Azaddin urged organisations to integrate financial wellbeing initiatives into their productivity plans, emphasising that fostering loyalty and stability in the workforce requires proactive measures, reported New Straits Times.

For more news and analysis on the latest HR and workforce trends in Asia, subscribe to HRM Asia and be part of the region’s largest HR community!