A new study carried out among 10,000 employees and 580 employers reveals that most CEOs are aware of the impact that financial stresses can have on their staff.
CEOs understand the impact of employee financial stress
Neyber’s DNA of Financial Wellbeing 2018 found that 72% of CEO’s understand the impacts of financial stress on employees and the business, while 51% of company owners and 74% of senior managers also do.
Financial stresses and lack of savings on the increase
The report also reveals that employee financial stresses are on the increase, with numbers of employees affected by financial worries rising from 58% to 63%.
Furthermore, those employees with less than one month’s savings have also risen– up from 24% to 32%, and a worrying 14% of employees reveal they have zero savings.
Businesses counting the cost of personal financial stress
It appears that these private financial worries are having a severe impact on business. The study reveals that:
- 35% of employees report financial stress
- 26% of employees have lost sleep
- 20% of employees are suffering from depression
- 10% of employees say they cannot focus at work
- 6% of employees have taken absence from work
All this adds up to a substantial cost for employers to bear. Neyber has calculated that the lost productivity and increased absence and employee turnover associated with financial stress costs UK companies in the region of £120.7 billion every year.
Heidi Allan, Head of Employee Wellbeing at Neyber, said:
“Thousands of employees reported how financial worries are impacting them, including 35% who have felt stressed, 33% anxious, 26% lost sleep and 20% depressed.
“With the magnitude of this issue, it’s clear that employers have a vested interest in helping employees manage their money, so each can feel more educated and in control. From my view, there are three key issues; financial stress has a significant impact on productivity and behaviour at work, there is a link between physical, mental and financial health, and billions of pounds are lost each year in absence and employee turnover.”
Jonathan Hollow, Financial Capability, Strategy and Innovation at Money Advice Service, concluded:
“Every employer should care about the findings in this report. A growing body of evidence shows that anxiety about finances leads to poorer mental, physical and social wellbeing, and that this affects attendance and performance at work. When your workforce suffers, your business can suffer too.”
Neyber’s full report – the DNA of financial wellbeing – can be found here.