The DNA of Financial Wellbeing: Money and mindset found that 72% of CEOs, 51% of company owners, and 74% of senior managers understand the impact of financial stress on employees and subsequently the business.
The research revealed that there’s been a significant increase in the number of employees with financial worries – from 58% to 63% over the last year. The number who reported having less than a month’s savings has also grown, from 24% to 32%; 14% said they have no savings.
These money troubles manifest in various ways, the report found. Around a quarter (26%) of employees surveyed said they had lost sleep over it, one in 10 (10%) couldn’t focus on work, and 6% reported taking time off.
This adds up to a substantial cost to businesses. Neyber calculated that the drop in productivity, increased absence and employee turnover associated with financial stress costs UK companies £120.7 billion every year.
Heidi Allan, head of employee wellbeing at Neyber, said: “With the magnitude of this issue it’s clear that employers have a vested interest in helping employees manage their money. 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.”
“Every employer should care about the findings in this report,” added Jonathan Hollow, head of financial capability, strategy and innovation at the Money Advice Service. “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 The DNA of Financial Wellbeing: Money and mindset study surveyed 10,000 employees and 580 employers.
