Many companies institute polices that help their employees take care of the little distractions in life that can sap productivity. Offering free lunches, complimentary coffee, access to an onsite gym, even dry cleaning pick-up services are far less rare today when compared to 30 years ago. While these programs can help employees concentrate, they are just window dressing for the massive productivity killer that no one wants to talk about: the personal finances of your employees.

The financial pain of consumers impacts the workplace

As we continue to recover slowly from the Great Recession and the collapse of the housing bubble, consumer finances remain in a dismal state. According to CoreLogic, nearly one in four homes that have a mortgage are worth less than the balance of the outstanding mortgage. Over 11 million families are in this situation right now. An additional 2.4 million homes are worth just slightly more than their mortgage value making them susceptible to dips in the market. Considering that the home is the most valuable asset for most families, this is a huge problem with little chance of improving dramatically in the near term.

If this were the only damaged piece to the personal finance puzzle then perhaps it could be overcome. But when we add in retirement account values that are just now starting to recover from their lows 10 years ago, high rates of unemployment and underemployment, increasing rates of inflation and tremendous uncertainty about the future the problem worsens.

Financial stress is proven to reduce productivity

This isn’t just conjecture; there is evidence that financial problems at home have a tremendous impact on the workplace. According to the American Psychological Association, 76 percent of workers cite the state of their personal finances as a major cause of stress and 40 percent say they stay up at night worrying due stress as well. A recent study in Finland indicates that people with high levels of financial and work-related stress have a much higher likelihood of developing diabetes and heart disease.

This stress leads to lost productivity at work and an increase in the number of sick days taken. The groups most acutely affected are women, employees between 30 and 44 years of age and anyone earning between $60,000 and $75,000 per year. Odds are that your company has at least several if not all employees falling into one of these groups.

Can anything be done about personal financial stress?

For the benefit of your employees and your company, it’s important to ameliorate this stress to the greatest extent possible. Even a small reduction in the level of stress can have tremendous short-term and long-term productivity benefits for your company.

Consider:

• Increasing the levels of autonomy offered to employees as this enhances their quality of life.

• Inviting personal finance experts to speak to employees at lunch time to offer specific strategies to address personal financial challenges.

• Encouraging employees to use online tools like Mint.com to take better control of their expenses and save money where possible.

• Offering on occasion (say one afternoon a month) an onsite financial fitness program where employees can spend time helping each other with their personal financial issues.

• Launching a “matching program” whereby your company will match a portion of expense reductions achieved by qualifying employees.

• Facilitating access to psychologists that can help stressed employees cope.

• Rewarding good behavior appropriately in the workplace.

No one expects their boss to pay off their mortgage. But little things—like these suggestions—provide tangible help and send the right message. The cost of these programs is small compared to the productivity gains you can achieve.