Year-End Cost Control: How Employee Holiday Debt Fuels a Q1 Surge in Absenteeism and Costly Turnover

Shay Cook
4 days ago
4 min read

By Mrs. Shay Cook, CEO & Founder of Crusaders for Change®, LLC (C4C) Accredited Financial Counselor® & Financial Fitness Coach®

3 Key Takeaways From This Article:

The Turnover & Burnout Crisis is Predictable: Nearly 75% of the U.S. workforce is financially stressed, a problem accelerated by holiday debt, which can cause absenteeism and turnover starting in January.
The Cost is High: The average holiday debt borrowed is $1,181. This, combined with inflation and other financial stressors, leads to "The Silent Tax"—operational costs like presenteeism and high turnover, which cost $3,000 to $6,000 to replace a single CNA caregiver.
The Solution is Strategic: Implementing an Employee Financial Wellness Program (FWP) is a proactive cost control strategy that delivers a high ROI by neutralizing the debt-driven incentive to job-hop for a small raise.

As business owners, the close of the year is often an important time for us as we review budgets, plan, and optimize. And often for executives and administrators in industries such as mission-driven organizations and senior care, the approaching holiday season signals the start of a predictable and expensive crisis: the January Debt Hangover. Financial stress is widespread among the U.S. workforce, with a report from The Hartford revealing that in 2025, almost three-quarters (nearly 75%) of workers are concerned about their money. For more than half of these employees (56%), this stress has a direct, negative impact on their workplace productivity.

For leaders managing senior living facilities, assisted living communities, and skilled nursing homes, the strain of chronic caregiver turnover is a top-of-mind operational challenge. What often goes unrecognized is the link between the financial burdens of holiday spending and the costly surge in staff turnover and low productivity. A 2023 PwC survey found that 44 percent of U.S. employees who are struggling with their finances say their concerns distracted them while they’re at work.

Your employees' financial stability is no longer just a personal affair; it is a direct business risk that can undermine resident care quality and erode your budget. Failing to address the problem of debt means you are inadvertently financing your own quarterly staffing disruptions.

The Silent Tax and the True Cost of the Turnover Crisis

The "Silent Tax" is the hidden operational cost incurred by a business due to employee financial stress. It manifests directly as increased staff turnover, excessive absenteeism, and high presenteeism (being physically present at work while being significantly less productive due to stress or other personal issues), collectively costing businesses thousands annually in replacement and lost productivity costs.

The Dynamics of the January Debt Peak

The holiday season acts as an accelerant to financial instability. More than a third of American shoppers took on new debt over the holidays, borrowing an average of $1,181—up from $1,028 in 2023, according to LendingTree data. Fewer than half had planned to incur this debt. For those who did, the primary methods were credit cards (65%), retailer cards (24%), and Buy Now, Pay Later loans (21%). For direct care workers and CNAs—roles often compensated hourly—this debt burden can be heavy.

When employees return to their crucial roles in nursing homes and memory care units in January, they are met with their largest credit card statements of the year, alongside regular day-to-day spending that is becoming more expensive each month due to inflation. This debt stress translates into measurable operational disruption:

Increased Absenteeism and Call-Outs: Financial anxiety is a leading cause of physical and mental health decline. A staff member without an emergency savings cushion is forced to treat every minor financial setback—like an unexpected dental bill or a car repair—as a crisis requiring immediate time off. This leads to last-minute call-outs, forcing facilities to scramble for coverage and pay expensive overtime wages.
Worsening Presenteeism: The psychological toll of debt is immense. Even when employees are physically at work, their minds are preoccupied with financial worries, budgeting, and debt management. Valuable time and focus are lost, increasing the risk of errors in caregiving and reducing the overall quality of service.

Mitigating Q1 Turnover: A Strategic Defense Against Staff Churn

One of the most damaging consequences of the debt peak is its effect on staff retention rates.

The heightened financial anxiety can compel valuable employees to actively look for new positions. Why? Because securing even a small raise—often just $0.50 to $1.00 more per hour—is viewed as a life raft to escape the suffocating burden of debt. This necessity-driven job search can fuel the costly turnover surge across senior care companies.

You have the power to break this cycle.

A customized Employee Financial Wellness Program (FWP) from Crusaders for Change^® (C4C) serves as a vital defense mechanism against this predictable churn. Our program, led by Accredited Financial Counselors^® (AFC^®), does more than offer advice—it offers stability.

Behavioral Change: We equip your employees with debt management strategies, budgeting tools, and techniques for creating realistic spend plans.
Neutralizing the Incentive: By stabilizing their personal finances, we reduce the immediate, panic-driven need to job-hop for a marginal raise. This significantly reduces the turnover rate fueled by debt.

The financial return is undeniable: the cost of replacing a single CNA or caregiver can range from $3,000 to $6,000. The money you save by retaining employees easily surpasses the investment in an employee financial wellness benefit program.

Calculate Your ROI: See How Much Turnover is Really Costing You

Year-End Risk Mitigation: A Smart Investment Strategy

Implementing an employee financial wellness program (FWP) is not HR overhead; it is a year-end cost control strategy and a highly effective Q1 ROI driver.

Protect Your Competitive Edge: Financial Wellness Programs are quickly becoming the new competitive standard for benefits. Offering a program that actively solves employees' biggest real-world problem makes you an attractive employer of choice.
Attract & Retain Younger Talent: Younger caregivers and Millennials/Gen Z nurses prioritize practical financial support as part of the traditionally offered long-term benefits. An FWP speaks directly to their needs.