Financial wellbeing is a key factor to retaining an engaged workforce. Overall wellbeing strategies are being implemented by 66% of multinational companies. These are effective in preventing absences and increasing wellness, but the lack of financial wellbeing strategies leaves an incomplete support package. Of employers surveyed for a 2017 CIPD (Chartered Institute of Personnel and Development) research paper, only 42% had a financial wellbeing strategy.
The paper illuminated the poor state of financial wellness in the UK. A significant 40% of working-aged people were found to feel that they didn’t have good control over their finances, with the under-25s feeling especially helpless.
Typical financial concerns varied depending on age demographic. Younger people (aged 18-25) were found to worry about student loans and saving for the future. People aged from their late 20s to mid-40s were more likely to worry issues including mortgage repayments and childcare costs. People in their late 40s onwards were concerned with affording retirement and making provisions for unforeseen life events, such as a bereavement or redundancy. It is apparent from the findings that though financial concerns vary, they are widespread.
Concern about financial issues was found to impact employees’ work performance. Annually, employers incur a median cost of £522 per employee. 8% of the UK workforce admit having taken time off due to financial stress. Mental health problems result in £8.4 billion in absences and £15.1 billion in reduced productivity.
In the retail industry alone, stress over financial issues cost employers £7 billion and 1.7 million hours through employees taking time off work.
The statistics revealed in the CIPD paper show the state of financial wellbeing currently leaves significant room for improvement. Poor financial wellbeing has a significant effect on workplaces through absences and lower productivity and can be detrimental to the mental health of employees. Implementing a financial wellbeing strategy, therefore, can provide benefits for both employer and employee.
One of the major concerns that employees have is how to make sufficient provision for when they no longer work. Financial advice provides assistance to address employees’ concerns in this area and others surrounding their finances. Expert advice can help with practical planning for the future, as well as dealing with any debts or changes in lifestyle.
LowerMyCharges.com provide low cost, high-quality financial advice for employees as a benefit through a salary sacrifice scheme. We can help employees with advice and assistance in getting a better understanding of their finances as well as developing a plan for retirement suitable for their individual needs. To find out more, click here or contact us at firstname.lastname@example.org.
*The tax treatment of salary sacrifice arrangements depends on individual circumstances and may be subject to change in the future.
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