From natural hazards to concerns about meeting delivery deadlines, today’s truckers face a number of external pressures that can increase job stress. However, a major source of stress that can be overlooked is financial stress. This has become even more important in recent years as uncertainty in the wider economy has increased money-related stress.
Nearly half of US workers feel financial stress, according to FinFit’s latest research and 61% say they have less cash on hand than a year ago. There are a myriad of reasons why so many workers are living paycheck to paycheck, including an uncertain economy, the recent rise in inflation, and low levels of financial literacy. Furthermore, the financial services industry is primarily concentrated in the top third of the US workforce, leaving the rest of the country to essentially fend for itself.
Recent wage increases for drivers have done little to offset the many additional obstacles they face when it comes to achieving financial security. Obstacles include health challenges, higher than average debt levels and budgeting for food and other necessities on the road.
“It’s important to decouple income from financial health,” says Charles Lattimer, Chief Innovation and Growth Officer at FinFit. “We can’t assume that someone making more than $75,000 a year isn’t financially stressed, which affects their job performance.”
High levels of financial insecurity have serious implications for both the drivers themselves and the industry as a whole. Here’s a look at three challenges that trucker financial pressure is creating for the industry.
Driver safety
As with other distractions, concerns about personal or family financial well-being can create concerns about driver safety. One in five adults report experience forgetfulness when stressed and 17% say they have difficulty making decisions. This is especially dangerous for truck drivers. Researchers at the University of Pittsburgh were found that drivers who worried about their finances were more likely to have an accident that could have been avoided.
“When someone is financially stressed, they have trouble even thinking clearly and are usually sleep deprived and suffer from higher stress levels,” says Tim O’Neil, Senior Workforce Solutions Specialist at TrueNorth Companies, a services and insurance professional. brokerage firm that provides insurance tools and solutions. “Then they’re driving an 80,000-pound semi truck down the road and they’re distracted by worrying about how they’re going to be able to pay the bills.”
University of Pittsburgh researchers estimated that driver financial insecurity was linked to more than $1.3 million a year in additional company costs.
“The things that stress truck drivers may not be much different than what stress other workers, but the impact can be so great when someone has a catastrophic event like a semi truck accident,” says O’Neil.
Reservation
The lack of a driver is well documented. In today’s competitive work environment, truck drivers may be open to seeking other careers or positions that they believe will better set them up for financial security. Research shows that employers who have implemented financial wellness programs have seen a 25% to 58% increase in employee retention.
In an industry with companies that have turnover rates north of 90%, the ability to boost driver retention could be a competitive advantage. The stay could benefit drivers, too, Lattimer says.
“Money stability isn’t just about how much you earn; it’s more complicated than that,” says Lattimer. “Changing jobs frequently can make it difficult to keep your finances and benefits stable, especially if you’re already living paycheck to paycheck.”
Overall wellness
Financial insecurity can have a negative impact on other parts of a trucker’s life. More than half of workers say financial stress and worries about money have had a negative impact on their sleep and mental health, and 44% say it has affected their physical health. Chronic stress has been linked to heart problems, obesity and other diseases. This, in turn, can create additional challenges for employers, including lower productivity levels and additional health-related costs, further stretching already tight budgets.
Financial stress can have far-reaching implications for truckers and the trucking industry, far beyond the budgets of individual drivers. Helping truckers deal with such problems—through financial wellness and other initiatives—can not only improve the lives of drivers, but also boost their employers’ bottom lines.
TrueNorth Companies and FinFit join forces to provide solutions for the financial well-being of truck drivers. learn more.