Poverty has been around pretty much since humans started roaming the earth. Despite efforts to alleviate poverty — such as the “war on poverty” announced by President Lyndon B. Johnson in 1964 — it remains with us today. According to the U.S. Census Bureau, 11.6% of Americans, or about 38MM people, lived at or below the poverty line in 2021. Fortunately, this has fallen since 2010 when the poverty rate reached 15.1% on the heels of the Great Recession.Many employees today are suffering not from financial poverty but from what is being referred to as “time poverty,” or not enough time to handle all their responsibilities and still do the things that make them happy and fulfilled. One common cause of time poverty is overwork and stress in their jobs.Employees of community financial institutions (CFIs) aren’t immune to this problem. In fact, CFI employees can be especially susceptible to time poverty due to staffing challenges that can result in having to work long hours under stressful conditions. This can lead to mental and physical health problems, lower productivity, and job burnout. Most Employees Don’t Use All Their PTOIn a survey conducted by Wondr Health, US employees listed paid time off as the most effective tool for dealing with time poverty and reducing overall stress and anxiety. However, nearly two-thirds (62%) of employees don’t use all of their PTO, a number that has doubled since 2020. What’s more, 5.5% of employees didn’t take any PTO in 2023. The total value of unused PTO in 2023 was $312B.Internalized pressure, heavy workloads, and organizational culture were the most common reasons for employees not taking PTO. “The findings show how important time off and flexibility are and signal that employers need to honestly evaluate how their current culture and policies may be impacting PTO hesitancy, burnout and subsequent impacts on health and wellness,” said Tim Church, MD, MPH, PHD, Wondr Health’s Chief Medical Officer. “Time poverty is a big driver of burnout and overall diminished health and life/work satisfaction.”There are hidden costs to time poverty for employers, including CFIs. These include:
- Lower productivity. Employees who are feeling stressed and anxious while on the job may be less likely to perform their jobs efficiently and productively. For example, it might take them longer to do routine tasks, or they might not contribute as much creativity, innovation, or engagement as they otherwise would.
- Higher absenteeism. These employees may be more likely to miss work days due to mental health struggles or skipping work to take care of responsibilities they don’t have time for otherwise. This can put additional stress on other employees who have to pick up their slack.
- More staff turnover. Anxious and stressed-out employees may eventually reach the breaking point where they either quit their jobs or have to be dismissed. According to a survey conducted by Applauz, it can cost up to 4x an employee’s annual salary to hire a replacement in 2025. This includes both hard and soft costs, such as the time spent by managers reviewing and interviewing candidates and training new employees.
How To Help Employees Deal with Time PovertyFortunately, there are some steps CFI managers can take to help employees (and themselves) combat the negative effects of time poverty. Consider the following strategies:
- Focus on your employees’ priorities. According to the Wondr Health survey, employees rank PTO and mental health days (21.5%) as the most effective tools for dealing with time poverty and mental health challenges. This was followed by flexible work hours/remote work options (15.4%), support for physical activity (14.3%), and emotional well-being content (13.3%).
- Strongly encourage employees to use all of their PTO. You could even make PTO usage mandatory, which some businesses do with finance and accounting employees to deter fraud. It’s important to make sure employees don’t feel threatened or fear losing their jobs if they take time off.
- Adopt a “time-abundance” mindset. For example, have your employees focus on fewer tasks that will have a big impact on the bank, instead of many small tasks that will have minimal impact. Encourage your employees to intentionally slow down their pace of work if they are feeling stressed or overwhelmed, and to take short breaks throughout the day to mentally and physically recharge.
- Lead by example. Many of your employees will look to you for guidance in their work style, including the number of hours they work and how hard they push themselves. So, in other words, practice what you preach.
- Shift the culture. Make a conscious effort to create a work environment that emphasizes work-life balance and good mental and physical health. Invest in time and stress management solutions to help employees find the right balance. It’s equally crucial to reject an “always-on” mentality in which employees feel like they have to be on call for their jobs 24/7.
- Encourage healthy communication. Your employees need to feel comfortable talking to you if they are feeling overworked or stressed about their jobs or their work-life balance. Be empathetic to their concerns and try to propose solutions that work for both employees and the bank.
Don’t Ignore Time PovertyThe costs of not helping your employees deal with the burden of time poverty in terms of lower productivity, higher absenteeism, and turnover are too great to ignore. Talk to your management team about how your CFI can implement some of these strategies to improve your employees’ mental health and job satisfaction, along with your CFI’s impact on the community.
