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Why Financial Wellbeing is an Important Aspect of your HR Policy

Why Financial Wellbeing is an Important Aspect of your HR Policy

Life worries are plentiful, we’re all aware of that. We all live with anxiety-inducers every single day. From the minor to the major. From the lesser “shall I have the healthy aubergine salad for dinner? Or go with those nice juicy burgers that seem to be calling my name?”, to the major “it’s the 10th of the month, I’m completely out of cash, my overdraft is maxed out, how on earth am I going to make it through to payday?!”. That last worry is the clincher. The mental impact of financial problems on employees should never be underestimated….and, as will be detailed in the rest of this blog, it is why the financial wellbeing of their employees should be an integral aspect of every employer’s HR policy. 

The statistical data contained within this piece is garnered from GettaSub’s Financial Wellbeing Report which, in turn, is comprised of information gathered from an online survey of 1,817 working adults (varying levels and industries) conducted by the completely independent YouGov Panel. The results of the survey were eye-opening in the extreme and shine a light, like never before, on why employers should be genuinely concerned about their employee’s financial wellbeing.

 

The Stats – A Breakdown

1 in every 2 employees are struggling financially but won’t tell their employer. Why should this concern the employer? After all, they can’t ensure a blissful utopian existence for all their employees. Well, it’s simple really. Employees don’t leave their financial concerns at the door when they enter work. They bring those worries with them to the workplace and it negatively impacts their productivity. The figures? 4% of the bottom line is impacted by lost productivity and 38% of employees would move to companies where financial wellbeing is a priority.

1 in every 4 employees admitted that financial worries negatively affected their ability to do their job. This was especially true of the younger 18-34 age group where 1 in 3 reported that they struggled to juggle their financial commitments. Adding a geographical element to the findings, 1 in 3 Londoners said that money distractions have caused them issues in the workplace, with 1 in 3 public service employees (nationwide) stating the same – which is possibly a knock-on effect from the lack of significant pay rises in the public sector since 2012.

How do money and financial concerns affect how employees do their job? Well, 19% admitted to losing sleep due to worrying about their financial situation - a tired employee is a less productive employee. 10% found it hard to concentrate at work because of money worries – a distracted employee is a less productive employee. 8% revealed they spent time during the working day dealing with money problems – the implications are clear, when an employee is dealing with their personal money issues during the working day, they’re clearly not at peak productivity. 8% stated they had suffered health problems due to financial issues, and 2% disclosed they had taken time off work due to money concerns – again, the implications of absent employees through illness and worry are self-evident and need no explanation.

 

Conclusion

The time has long since passed when employers could dismiss the financial wellbeing of their employees as run-of-the-mill personal problems that should be left at the door when entering work. The indisputable facts show us that just doesn’t happen anymore – if indeed, it ever did. Employees with financial concerns, understandably, bring those concerns with them to their workplace. It affects their performance, it affects their productivity, and has a negative knock-on impact, both financially and otherwise, on their employers. It is vital that employer’s HR policies offer support to their employees in this intensely important area. That they offer a sensible, logical and ethical alternative to risk-riddled, high-interest rate payday loans. GettaSub’s zero-risk, low fixed rate interest, short-term salary-advance loans are that alternative.

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