People Practice » Impact of poor financial wellbeing

https://www.youtube.com/watch?v=kzVM_lgFaGs

Salary Finance commissioned an independent survey of 10,053 UK employees across 25 industry sectors, finding:

 

  • 40% of UK employees have money worries

 

  • They are 8.8 times more likely to have sleepless nights, 7.6 times more likely not to finish daily tasks, 5.7 times more likely to have troubled relationships with work colleagues and 2.3 times more likely to be looking for a job

 

  • This same group is more likely to suffer from poor mental health, they are 4.9 times more likely to be depressed and 3.8 times more likely be prone to panic attacks

 

  • The cost of this is 25-34 lost productive days and greater staff turnover equating to 13-17% of total salary cost for the employer

 

  • Surprisingly one of the groups with the highest percentage of money worries (49%) is with those that are earning more than £100,000 pa. It is not the amount of money that you earn but what you do with it that is the cause of money worries

 

  • This led Salary Finance to develop a Financial Fitness Score for an individual, based on the answers to 10 behavioural questions concerning their spend, save and borrow habits, resulting in a score of between 1 to 5. Employers also have a corporate Financial Fitness Score based on the average scores of their employees

 

  • 82% of those who had a score of 1 had money worries, versus only 8% of those with a score of 5

 

  • Those who had low scores had a lower level of financial literacy, were more likely to view finances as a scary topic and didn’t know who to trust for financial advice

 

  • They also found that 77% of employees trust their employer, suggesting that there is a role for employers to provide financial wellbeing benefits to help their employees

 

  • Salary Finance have developed a Financial Fitness Improvement Toolkit that can help employers to identify what they need to do to measure and improve financial wellbeing. With this they could improve their corporate Financial Fitness Score, increase productivity, build retention, improve the mental health of their employees and reduce cost

 

To find out more, visit salaryfinance.com

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