Masters Thesis

The effects of personal financial debt on employee job performance

Managers want to maximize their employee productivity. One way to do this is to improve employee performance. This literature review explores whether an employee's personal financial situation has an effect on their job performance. There is a significant amount of research showing that employees with poor financial situations do not perform as well as employees who do not have poor personal financial situations. The link between personal finance and job performance is the level of stress that a poor financial situations causes. Employees who experience high levels of stress from their personal financial situations are less productive at work because they are more focused on their personal financial problems. This literature review also looks at financial education programs that employers have put in place to improve their employee's personal financial situations, thus increasing their employee's performance at work. There is evidence to show that financial education programs do improve employee job performance. Therefore it is beneficial and rewarding for companies to implement financial education programs for their employees.

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