THE EFFECT OF FINANCIAL STRESS AND COPING MECHANISMS ON EMPLOYEE PERFORMANCE: A LITERATURE REVIEW
DOI:
https://doi.org/10.35794/jmbi.v12i2.64006Abstract
Abstract
Financial stress has a significant impact on employee well-being and performance, likely affecting productivity, engagement, and attendance. In Indonesia, economic instability and low financial literacy are the main causes of these issues. Evidence suggests that financial literacy fosters adaptive coping strategies, particularly in budgeting and financial planning, which in turn alleviate stress and sustain optimal performance. Coping mechanisms act as mediators and moderators, influencing the relationship between financial stress and job performance. Cultural factors further shape coping effectiveness in Indonesian workplaces. This review highlights the critical role of coping in mitigating financial stress and identifies gaps in longitudinal research, cultural integration, and organisational interventions. The findings underscore the need for culturally sensitive financial programs that combine literacy, social support, and continuous training and empowerment to enhance sustainable employee performance.
Keyword: financial stress, financial literacy, coping strategy, job performance, employee well-being
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