Workers Worries and your Bottom Line

Financial well-being doesn’t just affect employees, it also impacts their ability to work. 1 in 4 workers say that money worries affect their ability to do their job, and 1 in 5 say that money worries make them lose sleep at night, which makes it more difficult for them to concentrate and make decisions at work.

Interestingly higher paid workers surveyed appeared to suffer more than lower paid workers – there is a clear link between financial well-being and productivity and it’s inevitable that low financial well-being among employees will adversely impact on the bottom line. In fact, survey results clearly show that low financial well-being is associated with higher employee absence, stress, poorer employee mental health, poorer performance, decision-making and focus.

Worrying about money doesn’t necessarily mean worrying about debt, and it’s not limited to just younger workers. People worry about saving for a home, the cost of raising children, funding parents in care, where to invest their savings, financial impact of losing their job and so on.

It’s true that employees don’t want their employers to know everything about their personal finances, but research shows that they are receptive to support, advice and guidance from their employer, and those employers who support staff with their financial choices benefit from a financially secure workforce who are more engaged, happier and more productive at work, which has the positive knock on effect of boosting business performance.

Survey results show that people know where to get financial advice, but very few actively seek advice, perhaps reflecting a perceived high cost of obtaining financial advice. The best way to support employees’ financial well-being is through a wide-ranging strategy that reflects both the needs of employees’ and the employer and doesn’t just focus on pay and rewards. The strategy should take account of the life stage of employees, and tackle issues such as managing savings, spending and borrowing, enabling employees to make informed financial decisions that lead to good outcomes.

Source Material for Statistics

Chartered Institute of Personnel and Development (CIPD) - Financial Well-being in the Workplace, January 2017

McMillan Wealth Consultants Ltd is an Appointed Representative of and represents only St. James’s Place Wealth Management Plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at www.sjp.co.uk/products