Financial stress is a condition that is becoming more prevalent in today’s society.
Factors such as high debt levels, low savings and economic recessions all contribute
to the financial stress experienced by people across all nations. Research has found
that financial stress negatively affects employees’ performance at work. Quality
employees play a vital role in the success of a business. As a result, employers
should strive to ensure employees’ well-being. With these increasing pressures on
personal finance and its interference on work, should management attempt to
improve employees’ financial well-being? Management needs to be convinced that
their actions can improve their employees’ financial well-being. This study
established and measured the relationship that the subjective measures financial
efficacy and satisfaction with remuneration have on personal financial well-being. A
sample size of 9 057 employees from different sectors in South Africa was used.
Data was analysed using Pearson correlation coefficients and multiple regression
analysis. Three hypotheses were tested. Hypothesis 1: There is a relationship
between satisfaction with remuneration and personal financial well-being.
Hypothesis 2: There is a relationship between personal financial well-being and
personal financial efficacy. Hypothesis 3: Personal financial efficacy moderates the
relationship between satisfaction with remuneration and personal financial wellbeing.
The study found that all three hypotheses were supported. Personal financial
efficacy and satisfaction with remuneration were found to have a large positive
relationship with personal financial well-being. The study also established that the
relationship between satisfaction with remuneration and financial well-being was
stronger in people with higher personal financial efficacy. It is argued that
management can intervene with employees’ financial well-being by improving
financial efficacy through financial literacy education and by improving their
satisfaction with remuneration. / MCom (Management Accountancy), North-West University, Potchefstroom Campus, 2014
| Identifer | oai:union.ndltd.org:NWUBOLOKA1/oai:dspace.nwu.ac.za:10394/13455 |
| Date | January 2014 |
| Creators | Vosloo, Wilmie |
| Source Sets | North-West University |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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