Financial stress erodes productivity in Bangladesh's private sector: Study
The Employee Benefit Trends Study (EBTS), which covered over 700 employees from sectors including garments, banking, FMCG, telecom, NGOs, and manufacturing, paints a sobering picture of a workforce that appears content on the surface but is struggling beneath the weight of anxiety and uncertainty
Highlights:
- Over half of private employees say financial stress hurts productivity
- Forty percent link money worries to declining mental health
- Two-thirds feel financially insecure; most lack retirement planning
- Only one-third of employers offer key wellness or insurance benefits
- Gen Z prioritizes flexibility; most employers lag in empathetic care
- Experts warn disengagement could erode Bangladesh's demographic dividend
More than half of private-sector employees in Bangladesh say financial worries are cutting into their productivity, while four in ten admit a tangible link between money stress and declining mental health, according to a new MetLife survey.
The Employee Benefit Trends Study (EBTS), which covered over 700 employees from sectors including garments, banking, FMCG, telecom, NGOs, and manufacturing, paints a sobering picture of a workforce that appears content on the surface but is struggling beneath the weight of anxiety and uncertainty.
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According to the survey, conducted by multinational insurer MetLife, 78% of employees report being satisfied with their jobs, and 73% express satisfaction with their overall well-being. Yet, beneath these positive figures lies a stark reality: 56% admit that financial stress hampers their work performance, and only 42% would recommend their employer to others.
"This disconnect signals an engagement crisis," said SM Zulfiqar Ali, research director at the Bangladesh Institute of Development Studies (BIDS). "High satisfaction with work but low advocacy shows that employees are functioning, not flourishing. They're surviving in a fragile system."
While 72% of employees believe their employers care about them, gaps remain in critical areas such as mental and financial wellness. Rising living costs, stagnant career growth, and job insecurity are intensifying anxiety, particularly among the young urban middle class navigating a highly competitive job market.
The cost of financial anxiety
Perhaps the most striking finding is the close correlation between financial stress and productivity. Two out of three employees report feeling financially insecure, and more than half acknowledge that these worries affect their work. Additionally, 69% believe employers should play a proactive role in supporting financial well-being, including facilitating retirement savings.
Yet, more than 53% of respondents have no retirement plan, highlighting a stark lack of financial literacy and long-term security.
Financial stress is not just about money; it's about uncertainty, said Farzana Rahman, a mid-level manager at a telecom company in Dhaka.
She said when you don't know if you can pay next month's school fees or medical bills, you cannot fully focus on your job. The anxiety eats away at your confidence.
Bridging gap between loyalty and productivity
The study finds that employees satisfied with their benefits are twice as likely to be loyal, engaged, and productive. Yet, despite 78% of employees saying that access to insurance and wellness services would improve loyalty, only about one-third of employers currently provide these benefits.
Critical gaps remain in paid caregiver leave, health insurance, life insurance, income protection, and disability coverage benefits that could significantly enhance a worker's sense of stability.
Bangladesh's private sector has historically underinvested in employee benefits because jobs were abundant and replaceable, said Mahbubur Rahman Hira, HR head of a leading RMG firm.
"But that mindset is outdated. The new generation doesn't just want a paycheck; they want security, empathy, and respect," he added.
Even where benefits exist, they are often underutilised due to poor communication. Seventy percent of employees reported they would use benefits more if they understood how others leveraged them, while one in four felt inadequately informed about available offerings. The report urges companies to maintain consistent engagement through digital channels, manager check-ins, and storytelling around employee experiences to convert passive policies into active support systems.
A culture of care or the lack thereof
The study also emphasises the rising importance of employee care. Companies that demonstrate empathy through flexible policies, wellness programmes, and transparent communication see measurable gains in loyalty and engagement. Flexible leave policies, in particular, are highly valued: among Gen Z respondents, 83% ranked flexibility as their top demand. Employees also expect employers to provide tangible support during life events, from financial shocks to caregiving responsibilities.
However, employer initiatives often lag behind expectations. While 51% of organisations increased benefits spending last year, most investments remain concentrated in traditional areas such as health and safety insurance, rather than addressing mental health or financial planning.
The idea of "care" in corporate Bangladesh is often symbolic, said Sadia Haque, a human resource management scholar at IBA, University of Dhaka. "A few paid leaves or token wellness sessions don't address the deeper problem, a lack of psychological safety and trust at work."
Productivity and retention as strategic priorities
From the employer perspective, 56% cite productivity and 49% cite engagement as their biggest challenges. Although most recognise the role of benefits in workplace culture, many admit that current offerings fail to meaningfully reduce stress or enhance financial well-being.
Ala Ahmad, CEO of MetLife Bangladesh, said workplace well-being is no longer philanthropy; it's a strategy. Financial stress and inadequate benefits quietly undermine productivity and morale. Companies have an opportunity to lead by fostering a caring culture and better communication.
Experts warn that without modernisation of HR strategies, Bangladesh risks a productivity paradox: employees may appear satisfied but remain disengaged. "Mental and financial health are not personal issues; they are productivity issues," Zulfiqar Ali cautioned.
"Failure to address these concerns could turn Bangladesh's demographic dividend into a demographic burden," he added.
