Financial stress has been one of the most important reasons for the ever increasing absenteeism rates. The financial stress is seen to be inversely proportional to the extent of financial well being. The level of financial stress varies from person to person. Generally lower financial stress is seen among those who have higher financial well being. Financial stress may also be because of mismanagement of the money one earns. Financial stress is seen to reflect on the physical and psychological well being of an employee.

Psychological impacts of financial stress may result in lack of commitment to the company, lack of motivation, emotional exhaustion, health issues related stress etc. All these by-products of financial stress are factors that contribute to more absenteeism. Lack of commitment and motivation actually leads to more unscheduled absence. Health issues created due to financial stress also contributes towards absenteeism. Health issues may be in the form of consistent headaches, pains etc. which makes them end up taking an unscheduled leave.

Some of the employees carry along financial stress to their workplaces which actually impair the company productivity and performance. Increased absenteeism will reduce the production and force the employer to heir extra men to complete the schedule in time. This also will reduce the performance.

Any employee what ever age or gender he/she may be should be awareness about managing money that they earn to keep themselves away from financial stress. This is the only way both the employee and the employer can maintain a clean relationship. This could be considered as a huge step towards improving production and performance of the company.