Nearly half of the UK’s workforce say money worries are the number one cause of stress, but what can employers do to ease the burden?
Salaries are stagnating, debts are escalating and house prices continue to rise. It is no wonder then 45% of the UK’s workforce say money is their biggest cause of stress.
Seventeen million workers admit they have less than £100 in savings to cover an emergency which could see them forced to payday lenders should the worst happen, trapping them in an ever increasing debt spiral.
And it is not just the lowest paid who are struggling; money troubles are global. A survey of U.S employees found one in four people earning $100,000 a year found it hard to meet their minimum credit card bill payment at the end of the month.
No wonder then that 25% of workers admit money worries have negatively impacted productivity while almost one in 10 have taken time off work to deal with their financial matters.
But employers can help.
Financial wellness programs offering a range of benefits from short to long term financial management are improving employee productivity and easing stress.
An effective financial wellness package should deliver four key outcomes:
- Control over day to day finances including income and debt management. Employers could offer tools to help with budgeting and automated savings, debt management, and tax and discount schemes.
- Capacity to absorb a financial shock. This might include will writing, insurance schemes and emergency savings plans.
- Allow the financial freedom for employees to make choices. Support ranges from financial planning and MOTs, advice on at retirement decisions, access to online resources, financial health scoring, and workplace seminars and clinics.
- Keep individuals on track to meet financial goals via access to a workplace pension, at retirement planning and regular financial reviews.
In uncertain economic times managing money is more important than ever. Today’s forward thinking employers understand they can play a vital role in helping employees take control of their financial health for the good of the business and the individual.
We invite you to contact us for more detail about how a Financial Wellness programme could help you to grow your business.