Research

10 financial wellbeing facts for employers

21 Oct 2020 By Advertising feature

Recently published research into employees’ financial wellbeing by Salary Finance presents some home truths and offers practical advice on what organisations should be doing to help those that are financially vulnerable

The Employer’s Guide to Financial Wellbeing 2020-21 is the most comprehensive annual survey of employees’ financial health across the UK.  Now in its third year, it has become the go-to handbook for employers who want to deep dive into financial wellbeing.

Here are 10 financial wellbeing facts that have come out of this year’s research:

Some have benefitted from Covid, and some are worse off

A third (33 per cent) of employees have managed to save more money because of Covid-19. However, 16 per cent of employees have ended up saving less as a result of the pandemic, and for 51 per cent,  it has had no impact on their saving habits. However, once again there are big differences between those with low financial wellbeing and those with good financial wellbeing: the former are 2.6 times more likely to be saving than the latter. 

Poor financial wellbeing is significantly costing UK organisations

The cost of poor financial health related to areas such as presenteeism, absenteeism and retention is staggering and equates to between 13 and 17 per cent of payroll costs. UK organisations continue to suffer the impact of poor financial wellbeing of their people. 

Money worries remain at the top of the list

Money continues to cause the most worries for the majority of people. 26 per cent of UK employees are worrying about money on an ongoing basis. This far outweighs worries about careers (22 per cent), health (18 per cent) and relationships (14 per cent). Perhaps surprisingly, even during a global health pandemic, money continues to be the largest source of stress in the majority of our lives. 

Most demographics don’t make a difference to financial wellbeing (but some do) 

How much someone earns, where they live and what kind of industry they work in actually make very little difference to how financially healthy someone is. However, certain groups such as women and employees from black ethnic backgrounds are left more vulnerable to poor financial wellbeing. 46 per cent of black women suffer from money worries, compared to 18 per cent of white men.

Employees in high-level, well-paid positions are susceptible to poor financial wellbeing

A third (33 per cent) of C-suite executives and 30 per cent of managers have poor financial wellbeing. Surprisingly, those that earn between £10-30k per year have almost the same level of financial worries as those earning over £90k per year (27 per cent vs 24 per cent). Poor financial wellbeing is not about income or seniority.

Poor mental health and poor financial health continue to go hand in hand 

Those that have poor financial health are 3.7 times more likely to be suffering from anxiety and 5.3 times more likely to be feeling depressed and finding it hard to carry on with daily life. 

Providing financial assistance to loved ones is putting increasing strain on those with poor financial wellbeing 

Those with poor financial wellbeing are 1.7 times more likely to provide financial assistance to loved ones than those with good financial wellbeing. This is despite 24 per cent of them having to borrow money themselves to help others.

What financial help employees want depends on their financial wellbeing 

When it comes to paying bills and borrowing money, those with poor financial wellbeing are three times more likely to want help from their employer than those with good financial wellbeing. 

Money is the last great workplace taboo

The majority of employees still don’t feel comfortable talking or asking for help with their finances. 81 per cent of employees don’t feel comfortable talking about money at work and 71 per cent of employees don’t feel comfortable asking for help with financial matters from their employer. 

Some employees are considering reducing the amount they’re paying into their pension 

Covid-19 has made some employees feel they can’t focus on long-term financial planning. Those with poor financial wellbeing are now three times more likely to consider reducing the amount they’re paying into their pension plan than those with good financial wellbeing.

Request your copy of The Employer’s Guide to Financial Wellbeing 2020-21on Salary Finance's website.

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