Money worries are having a detrimental impact on the workplace with our latest research finding that 40% of employees believe that it affects work performance by causing increased stress levels. One in ten (10%) say it has led to increased sick days.
Our financial wellbeing research with the Reward & Employee Benefits Association (REBA) shows that employers are well aware of financial wellbeing risks they expect employees to face. This includes inflation (76%), costs impacting working parents such as childcare (73%), rental costs (64%), carer costs including eldercare (46%), high interest rates on mortgages (58%) and high energy prices (58%). In fact, 53% of employers say the increased cost of living will be a driver of change for future financial wellbeing support.
Other financial wellbeing risks high on the list for employers include insufficient retirement savings (71%) and a lack of financial literacy (62%). To combat these concerns, almost half of employers to their financial wellbeing offerings, and over a third (35%) say they will increase financial wellbeing spend.
The focus has now shifted to providing employees with the knowledge and tools to manage their finances better. Specifically, employers offer or plan to offer financial education from an independent provider (47%), financial coaching e.g. one-to-one guidance (43%) and advice on general finances (47%), or advice specific to retirement (54%), as well as support with pre-retirement planning (60%).
Support is also growing for savings products. Currently, about one in seven employers (14%) offer savings via tax-free wrappers such as a Workplace ISA. This is set to more than double to 30% of employers in the future. It seems this workplace benefit would be welcomed by employees with our research finding that if they had spare cash, 42% of workers would save it for a rainy day such as in an ISA.
Jonathan Watts-Lay, Director, WEALTH at work comments;
“Money worries can have a detrimental impact on people’s home and work life. So, it’s good to see that employers are stepping up to provide employees with the tools and knowledge to better manage their finances. Many leading companies now provide employees with financial education and guidance from financial coaches which can help them to address gaps in financial literacy.
He adds; “Many employers also offer a range of savings products such as ISAs to help people create a savings pot for their future or for an emergency such as the car breaking down. So don’t hesitate to speak to your employer about how they can help you, as you may find that it makes a massive positive difference to your finances.”