The Employer’s Guide to Financial Wellbeing 2019-20 is the second annual survey for employers to understand their people’s financial wellbeing.
This year’s research has confirmed the urgent need for employers to prioritise financial wellbeing programmes.
36% of UK employees are worried about money
People are more worried about money than any other area of life. This includes their career (26%), health (23%) and relationships (19%).
Poor financial wellbeing is costing between 9-13% of payroll
Absenteeism, productivity and retention are all impacted. 30 days are lost every month per 1,000 employees due to absenteeism. Those that are stressed are losing 10 working days a year in productivity and are 1.5 times more likely to be looking for a new job.
You are over 4 times more likely to have depression and/or anxiety if you are worried about money
Those that are worrying about money are much more likely to have a mental health problem related to anxiety (4.1 times more likely) and/or depression (4.6 times more likely). An organisation that has a mental wellbeing strategy without a financial one alongside won’t be able to drive forward real impact.
The highest and lowest earners have similar levels of money worries
Almost one third of those earning between £40-60k have money worries and those that earn over £100k per annum have the same level of financial worries as those that earn less than £10k.
People know how budget, but struggle to stick to it
Less than 5% of people with low financial wellbeing don’t know how to budget. It’s not the setting of a budget that is the issue, it’s building the habits that allow you to stick to it. People generally fall into two categories – ‘Planners’ who find it easy to save first and spend later, and ‘Copers’ who tend to spend first and save later.
Those with low financial wellbeing are less equipped to handle major life events
When people with low financial wellbeing take time off for maternity and paternity leave, 67% did not continue their pension contributions, 40% struggled to pay bills and 29% took on additional debt. This presents an important consideration for HR Directors who are planning a return to work programmes after having children.
Money is the last great taboo
Less than half of UK employees are comfortable talking to anyone apart from their partner about money. For people with low financial wellbeing, this drops even further while there is also an increase them saying they don’t feel comfortable talking to anyone at all.
Getting out of debt and being better at saving are the top priorities
People with low financial wellbeing are motivated by getting out of debt and getting better at saving above everything else to do with their money. They know what they need to do but are stuck in a cycle of high-interest loans, credit card debts and missed payments. This is the greatest opportunity for employers to make a difference in the lives of their employees.
People trust their employer
Those with both high and low levels of financial wellbeing trust their employer and believe they care about their wellbeing (80% of Planners and 72% of Copers trust their employer). This creates a powerful role for employers. They are in a privileged position to help their people improve their financial wellbeing.
You can read the rest of the research, and find out the six steps to implementing a successful financial wellbeing programme, by downloading a copy of The Employer’s Guide to Financial Wellbeing 2019-20 here or click the button below: