New research links money worries to burnout and absenteeism and turnover across New Zealand workplaces
Financial stress is no longer just a personal issue for New Zealand employees – it's a workforce performance issue, according to new research from Gallagher's Workplace Wellbeing Index: Financial Edition.
The study, based on a survey of 3,598 employees across Australia and New Zealand, found nearly two-thirds are struggling financially, one in three has taken on a second job, and more than a quarter admit they are always or often distracted at work because of personal financial pressures.
More than a third of employees are losing sleep because of financial stress, and one in three goes to work unwell because they cannot afford not to. Twenty-six per cent are experiencing burnout, disproportionately affecting younger workers, and nearly 40 per cent of those under 34 now hold a side hustle.
The pattern lines up with local findings: a TELUS Health report already found more than half of New Zealand employees cite financial concerns as their primary source of personal stress, a trend Gallagher's Australia and New Zealand-wide data now quantifies at scale.
Silvia Pothoven, head of corporate benefits for Gallagher's Benefits & HR Consulting Division in Australia, whose team led the research across both markets, said the findings had reframed how employers should think about wellbeing.
"Financial stress has traditionally been viewed as a personal issue, but our research suggests employers may be underestimating its impact on workforce performance," Pothoven said.
"When employees are losing sleep, taking on second jobs, coming to work unwell and admitting they're distracted by financial pressures, the effects extend far beyond their personal finances. These are factors that influence productivity, engagement, retention and overall workforce resilience."
Pothoven said the rise of secondary income was not always about basic survival. "Every single Uber driver we spoke to, the Uber driving was their side hustle," she said.
"One of them was an actual actuary. We know they're not exactly poorly paid for their role, and they were still doing it. But it meant the difference between putting his kids in extracurricular activities or not."
She said the resulting fatigue and distraction were beginning to show up as safety and performance issues – relevant to employers already grappling with high burnout levels among New Zealand staff.
What HR can practically offer
Pothoven said employers often assumed the fix required new spending. "It's not always dollars that need to be thrown at the problem," she said.
"Sometimes it's actually going through the partners that you've already got – whether it's an employee assistance program, your payroll provider, your banking relationship or your retirement savings scheme – and looking at how they can better support your people."
She warned that inaction has a cost of its own. "You are going to have higher levels of absenteeism, higher levels of people being present but not present," Pothoven said.
"You are going to have higher turnover, because people are looking outside of your bank. Your employer is the one that knows most about you – so if they can't rely on an employer, they will seek somewhere else."
She compared the moment to the early years of workplace mental health awareness: "When mental health became one of those topics of interest, it was seen that if you weren't addressing it, you were an employer that didn't care. I think we're at that stage now with financial wellbeing."
