A recent report based upon the Close Brothers’ Financial Wellbeing Index suggests that in an average workplace, 39% of employees worry about money ‘always’ or ‘often’, with younger workers the most affected. So-called ‘millennials’ are the most affected, with 87 percent admitting worrying about money whilst at work. Of those aged between 35-54 the figure drops slightly to 72 percent.
With employees’ minds elsewhere, this can obviously have a massive impact upon productivity in the workplace. Head of financial education at Close Brothers, Jeanette Makings, has stated that this problem is a “bottom-line issue” that businesses must start acting upon. , “If an employee is worried about money, they don’t park that worry in the umbrella stand at the door. It impacts their decision-making functionality, and they might use work hours to take care of issues or take time off work. It starts to impact their overall health,” she said.
“All those factors and more mean businesses are not getting the best from their employees. This is a bottom-line issue [and] doing nothing is no longer an option.”
|The same survey also shows that most businesses “dramatically overestimate” their employee’s financial wellbeing. This is despite almost a quarter noting reduced productivity as a result of money-related stress. Other effects that money worries can have on productivity include; loss of talent, higher short-term absences, higher long-term absences, reduction in retirees, and higher healthcare costs.|
“Despite the growing awareness of the need for workplace financial wellbeing, organisations seem to be struggling to find clarity, transparency and meaningful measurement on this issue,” said Makings. She said businesses were well placed to improve employees’ financial wellbeing, as they were able to provide better value for money on benefits than an individual and could distribute financial education, advice and investment solutions.
|Challenges Associated With Poor Financial Wellbeing|
● 22% Reduced Productivity
● 22% Loss of Talent
● 19% Reduced Employee Engagement
● 19% Higher Absences
● 19% Demands for Higher Wages
Here at Debt Assist, our award-winning advisers have helped thousands of people get to grips with their financial worries. This, in turn, helps them become happier, more productive employees with (at least) one less thing on their mind.
According to the National Audit Office (NAO) around 8.3 million people in the UK are unable to pay off debts or household bills, and with 61% of employees in full-time employment worrying specifically about their debt, simply giving them someone to talk to can help significantly.
This is something that you can do to help improve wellness within your organisation, and at no cost to you or your employees!
For more information visit DebtAssist.co.uk or call 0800 029 3992 and ask for Reece.