Businesses need to pay employees enough or they’ll constantly be looking for new workers.
This is from the insurance firm Aviva, which found (after a two year study) that two thirds of employees are “just getting by” financially.
It calls on businesses to help employees save – or even give employees tools to ensure better financial well-being. It says only 35 percent of employees show signs of ‘good saving behaviours.’
Employees don’t think they’ll have enough money for retirement
This is while forty three percent of employees say they do not feel financially on track to live the kind of life they want in the future.
Aviva says this is a time when rising inflation is likely to mean money matters have a bigger impact on people’s sense of wellbeing and decision-making.
Nearly half of the working population interviewed (44 percent) feel their money situation means they will never have the things they want in life.
Even more (57 percent) are concerned the money they have or will save won’t last into their later years. This ties is with an earlier report in HR Review, which said the pandemic has scuppered their retirement plans.
What is the solution?
Laura Stewart-Smith is Head of Workplace Savings and Retirement at Aviva. She said:
”With many people facing financial challenges, these findings present a new opportunity for employers to build deeper, lasting relationships with their employees by taking steps to support their financial education and wellbeing.”
One of the suggestions for better financial health – and therefore in some cases better mental wellbeing – is to help employees on the career ladder.
The firm says by boosting a worker’s job opportunities within a company, they’re more likely to stay, also saving the firm on recruitment and training costs.
Employees don’t trust employers to look after their career progression
However, a report by WorkNest the employment law advisors found employees in general don’t trust their employers to give them a promotion while they’re hybrid working.
Only 40 percent are confident their employer will be fair to them.
Some managers agree, around 66 percent of business decision makers said their employees are unlikely to be treated evenly and fairly, when it comes to progression and promotion prospects.
James Tamm, Director of Legal Services at WorkNest LAW said these were an alarm bell: Given the growing popularity of hybrid work, employers must have policies and manager training in place to ensure staff receive the same support and opportunities as their office-based colleagues and mitigate the risk of unfair treatment of workers.
Feyaza Khan has been a journalist for more than 20 years in print and broadcast. Her special interests include neurodiversity in the workplace, tech, diversity, trauma and wellbeing.
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