Prevalence of financial stress and its effect on employee performance in Zimbabwe’s construction sector

This study was motivated by the fact that some employees are extrinsically motivated whilst others are not, yet employers were trying to combat the current corporate financial constraints by eliminating all employee financial benefits. As such, employees were found to be facing financial difficulties as evidenced by low salaries and wages as well as late payment of these salaries, following exorbitant salary cuts of up to 50% in 2016. Additionally, employees’ financial benefits were eliminated, they spent up to six months without being paid and working days (for some employees) were also reduced resulting in employees getting half salaries. Additionally, as a result of financial problems, employees were found to be associated with high and rising debt and credit levels, low savings rates, frequent requests of salary advances, high absenteeism rates, and occasional long breaks. The objectives of this study were; to establish whether financial stress is prevalent or not among employees in Zimbabwe’s construction sector; identify its predictors and its consequences, establish the strategies being adopted to cope with financial stress, and examine its impact on employee performance at the workplace. Various literature sources in relation to the study title were reviewed and critically analyzed, which in turn informed this study framework. The study adopted the descriptive-explanatory research design. The study target population, comprised all the employees and management totaling 250 respondents. A sample of 134 respondents was selected using the stratified random sampling technique. Out of the 134 questionnaires that were distributed, 95 were retrieved. The obtained raw data was analyzed using the STATA 11 statistical package, utilizing the regression tool and frequency computations, and is herein presented in tabular format. The study thus established that financial stress is undeniably prevalent among employees within Zimbabwe’s construction sector. It is predicted by demographic factors as well as other independent factors. Its consequences include high absenteeism rates, lateness at work and health problems and employees are currently adopting some strategies to cope with it, which include menial jobs, collective savings programs, and financial management strategies. It was also established that these consequences are affecting employee performance by reducing productivity per worker. The main study recommendations are that employees should have stress management skills through financial education, advice, and counseling, and the employer on the other hand, should explore alternative turnaround strategies to revive the company from financial distress other than continuously cutting down on wages and salaries and retrenching its workforce. Further studies are recommended to establish productivity trends and relate them to financial stress over a specific period of time since productivity, in this case, was measured through inference.