The UK workforce is thought to lose 17.5 million working hours per year due to employee financial stress. According to research by Neyber, a staggering 67% of respondents feel that their employer does not care about their financial wellbeing.
10,000 UK employees, varying in industry and role, took part in the research which also found that more than half of respondents feel that financial pressure has had an effect on their behaviour and performance at work.
Head of Insights and Engagement at Neyber, Heidi Allan, said: “More and more workers are looking to their employer for help with financial matters and this will only increase as more Millennials enter the workforce; it’s not a problem that is going to go away.”
Other significant findings from the report include:
70% of employees admitted to wasting a fifth of their time at work worrying about finances.
Around half of the respondents confessed that financial pressure affects their relationship with colleagues.
Just 3% of respondents would turn to their manager or HR department if they have financial concerns.
46% of respondents believe that financial pressure affects their relationship with their line manager.
55% of respondents have savings goals, but only a third (33%) are actively saving towards that goal.
Three-quarters of respondents aged 18-34 have savings targets, and 28% are actively saving.
“Employers and policy makers must act to address the growing financial wellbeing crisis. Financial education, awareness and understanding are key to making smart, well informed financial decisions,” believes Allan.
Every day in the UK, 209 people are declared insolvent or bankrupt; equivalent to one person every six minutes 53 seconds, according to Money Charity.
Their research suggests there are three key areas where employees are struggling:
How to budget and manage expenses
How to calculate APR and Interest repayments
How to save and protect against potential unexpected financial setbacks
What employers can do to help reduce employee financial stress?
While the needs of employees vary from employee to employee, there are a number of options available for employers to help provide support. These include:
Instil Company Success
Reminding employees of business growth, success and strategy is a great way of mentally increasing employees’ job security and reminding them that they are in a great place. You want to create an atmosphere of positivity, success and momentum, so employees feel good about working there.
The personal development of your employees is an important element of their professional development and growth. Use existing resources that are available to you, whether it be the businesses bank or an in-house financial advisor. Host a lunch and ask them to share tips with your staff on budgeting, saving, investing and give them options to further discuss their individual situations.
This sends the message to your business that you care about their financial wellbeing, as well as giving them tools and knowledge to improve their situation.
Another option is too look into eLearning and Online Training options which provide financial knowledge and tools. Often each user can purchase a specific course or subscription. This format allows employees to complete training in their own time outside of work and it is completely anonymous, making them feel more comfortable.
Whatever option you pursue, remember any assistance from employers can really go a long way in boosting the confidence and productivity of employees.
If you are stressed about your finances, Stafffinders recommends that you speak to your HR manager to discuss what assistance is available to you.
For more advice or to discuss how we can assist with your requirements, please contact a member of the Stafffinders team on 0141 887 1155.