Renowned corporate wellbeing expert Dr Cary Cooper found that, new research from Close Brothers reveals employers are underestimating the impact, of poor employee financial wellbeing in the workplace.
88% of employers think that their employees worry about money but only a third (30%) think that money worries impact their staff while at work. Sadly, the reality is quite different as 73% of employees said that money worries do impact them at work.
“Employers don’t just underestimate how many employees are affected by poor financial wellbeing in the workplace, they also underestimate the scale of the problem.
In Close Brothers’ newly developed Financial Wellbeing Index, employees score their wellbeing in seven areas of financial health; employees across the UK scored themselves an average of just 53.6 out of 100. Whereas, employers given the same test, estimated their employees’ financial wellbeing at 70.5 – nearly a third higher than the reality.”
This reality gap isn’t helpful for employee understanding and engagement, but it’s also restricting maximising their people strategies and impacting business performance. 22% of employers confirmed that poor financial wellbeing has led to reduced productivity, 19% recorded higher absences whilst another 22% said it caused them to lose talent all together.
The current skill short employment market makes retention and attraction a top priority for businesses across the UK. One of the ways to improve retention is to implement a comprehensive Financial Wellbeing Strategy for employees. 27% of organisations surveyed said they plan to implement one. Why?
Implementing a framework like this could help employees feel more stable and supported at work, it could offer solutions to financial worries that employers haven’t thought of, whilst they have been occupied feeling the stress and pressure of it. Take a look at Simplyhealth’s wellbeing strategies they suggest you should be implementing in the work place to help you to gain an idea of what will work best for you!
It is vital that you are paying your staff what they deserve. The more they feel valued in your company the more they will feel motivated to perform! If you are unsure or feel you may be undervaluing your staff take a look ar our salary survey. It is designed for candidates to compare their salaries for roles and experience, it will enable you to gather a better understanding of what is best for you to be doing for your employees.
“Conversely, the benefits of improving employee financial wellbeing are clear. Of those organisations that are already tackling the issue, nearly a third (30%) say that it helps improve employee productivity, a quarter (24%) say it assists in talent acquisition and retention, and 22% say that it helps to fulfil their strategic business objectives.”
In today’s world it’s critical to try and retain current talent as well as, working on attracting new skilled candidates into the work place. It isn’t just higher salaries and maximised benefits that can make employees feel valued and supported. Implementing initiatives to support a person’s wellbeing weather that’s financially, mentally or physically will set you apart as an employer. It will inevitably improve productivity, retention and over all business aims.