Money worries are a growing matter of concern amongst the workforce, but this isn’t just a matter of looking after your employees wellbeing. The knock-on effect of poor financial wellness is causing decreased productivity in the workplace, costing employers billions in losses every year. Committing to making money wellness a priority is mutually beneficial to both parties and could do your business the world of good. To stay up to date with the latest employee wellbeing solutions, follow us on Facebook, Twitter and LinkedIn
The reality is that employees’ financial concerns have a significant effect on workplace productivity, with Peoples Management’s 2019 survey showing that 77% of employees feel that money worries impact their ability to focus as they are trying to get on with their day-to-day jobs.
We already know that stress and anxiety can have a huge impact on our behaviour, so it’s no surprise that if financial concerns are weighing over employees during the working day, this will undoubtedly decrease productivity in the workplace. In fact, one in four employees (25%) report that these concerns are so severe that it impairs their ability to work effectively at all.
Neglecting Financial Wellness is Bad For Business
The DNA of Financial Wellbeing’s 2019 report shows that neglecting financial wellness in the workplace incurs significant costs for the employer. Each year, employers across the UK lose an estimated £15.2bn because of employees’ poor financial wellbeing, while research shows that addressing the problem could even boost GDP by 2.4%. Ultimately, employers are bearing the brunt of their own lack of financial wellness solutions.
This is a widespread issue, with an overwhelming 89% of larger UK businesses thought to be impacted by poor employee financial wellbeing. As well as decreased productivity in the workplace, financial stress-related absenteeism and high employee turnover also play a part in this concerning trend:
- 1 day lost each year per employee due to decreased productivity
- 2.5 days lost each year per employee due to financial stress-related absences
- £20,000 in estimated recruitment and training costs for each resignation
The Wellbeing Triangle
Unfortunately this is not surprising, as while employee wellness initiatives are on the rise, financial wellness is the least nurtured of the three facets of wellbeing out of mental, physical, and financial. This is concerning when we consider that all three are connected; leaving financial wellbeing unaddressed can lead to detrimental consequences for our physical and mental health too.
Despite the financial impact on businesses, only 56% of employers felt they could agree that their organisation was providing enough support for employees’ financial health, proving we still have a long way to go. While 28% of HR professionals polled said employee mental health was one of their top three priorities, only 4% reported financial wellbeing as a major focus.
As Jeanette Makings, Head of Financial Education Services at Close Brothers reports: “Money worries don’t just affect an individual’s financial health; they are one of the single biggest causes of stress, affecting mental and physical health if left unchecked. They are also an issue for businesses with lower productivity, higher absenteeism, and higher staff costs, which hurts business performance. Doing nothing is no longer an option,” she said.
The good news here is that while this places responsibility on the employer to take action, it also tells us that there are clear steps we can take. Implementing sustainable solutions to help your employees work towards money wellness is one of those one of those rare win-win situations that will benefit both parties in the long run and could do your business the world of good. Interested in finding out more?