Almost seven-tenths of employers believe their employees’ financial wellbeing has a direct impact on their productivity and engagement.
This research comes from Automatic Data Processing (ADP), an American provider of HR management software, in their Future of Pay research study. Results showed that 67 per cent of employers link financial wellbeing to productivity and 62 per cent to engagement.
As well as 98 per cent holding the opinion that their employee’s financial wellbeing is linked to their business performance.
The study also showed how (79 per cent) employees think that their employers should help them with their financial wellbeing. Millennials (90 per cent) are most willing to share some of their personal information such as spending habits, bank balances and family and healthcare needs with their payroll provider to track their finances in order to receive advice.
As the latest Office for National Statistics (ONS) showed that labour productivity in the UK has fallen between January and March 2019 for the third consecutive quarter, the ADP say that employee efficiency is “paramount”.
Jeff Phipps, Managing Director at ADP said:
Further research from Money and Mental Health Policy Institute supports this finding as 50 per cent of employees who are struggling financially are less productive, while 55 per cent of them admit to working less carefully as a result of emotional problems that come from their financial stress.
While many organisations implement several workplace initiatives to boost productivity, employees’ expectations for financial wellness offerings at work are growing. Therefore, companies need to review the role they play in their employees’ financial wellbeing journey, which can take many forms. Businesses can support their employees by becoming financial wellbeing advocates and facilitators. By hosting money management workshops, employers can fight against workplace absenteeism and attract and retain the best talent.
The ADP surveyed 4,000 employees and 2,900 businesses in order to obtain these results.