Half (50 per cent) of employees experiencing financial worries believe that the quality of their work is negatively affected as a result, according to a new study*.
The research, based on an August 2018 YouGov survey of 505 HR decision makers from UK private sector organisations, also revealed that half (50 per cent) of those with financial concerns believe they are less creative or less able to complete tasks that should be routine. More than two-thirds (69 per cent) of employees say they face money worries. These can stem from feeling under-prepared for financial emergency (27 per cent), the everyday costs of living (26 per cent) and a lack of preparedness for retirement (21 per cent).
Steven Cameron, pensions director at Aegon, said,
Employees have told us that poor financial wellbeing is harming their productivity at work. Poor financial wellbeing is not only stressful for individuals, but it’s also costing employers millions of working days a year, and billions to the economy.
Approximately half (51 per cent) of respondents told the survey that a lack of employee financial wellbeing, including concerns over long-term saving, retirement plans, budgeting, debt and living costs, is an issue for their organisation; 63 per cent of large employers are concerned about their workers’ ability to save for the future.
More than three-quarters (7 7per cent) of employers revealed that they are not aware of regulations around the difference between financial guidance and advice, and therefore do not know when they might be overstepping the line into advice, which can only be given by a regulated adviser. Almost half (45 per cent) think they would be intruding by approaching employees about it.
However, the research found that 70 per cent of employees would find general information highlighting steps to improve their financial wellbeing useful, while 64 per cent would value face-to-face counselling and support around debt management.
Mr Cameron said,
Clearly, employers want to do more to provide the help their employees need. We need to start a ‘win-win’ conversation about this issue so employees know where they can receive support, and employers feel empowered to give it.
- Study commissioned by Aegon.