Businesses are paying the price of stressed staff as pandemic money pressure takes its toll
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ith some staff understandably anxious about money, many businesses are feeling the knock-on effect as the recession hits – and it’s up to the c-suite to save them. Four in 10 (41%) employers surveyed say that increased financial stress amongst employees has negatively impacted their business this year - almost three mes the 15% who reported experiencing this challenge before 2020. And with eight in 10 (78%) concerned about the impact of this year's economic environment on employees' financial wellbeing, this problem is only set to grow. That’s according to new research from financial wellbeing pla orm nudge, which is urging businesses to open up the conversa on about money and help staff upskill and take control of their finances, to alleviate addi onal workplace stress and reduce business disrup on. Seven in 10 employers agree that employees' financial wellbeing has become more of a priority to them since Covid-19. But more clearly
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needs to be done, as two thirds (66%) of employees surveyed feel that their company provides li le or no support for their financial wellbeing. In fact, only 7% feel like they can talk openly to their employer about money problems. A lack of commitment from the top may be hindering progress, to the detriment of business performance. While more than half (53%) of employers agree that they would like to do more but don't know where to start, the majority (88%) believe their organisa on`s board or upper management could better support them when it comes to promo ng the financial wellbeing of their employees, within that by providing HR with more autonomy to implement appropriate solu ons (44%). And with 75% of those surveyed agreeing they feel comfortable talking about an employee's financial situaon and wellbeing, businesses would also benefit from leadership teams promo ng a more open culture that encourages people to communicate
about money worries (42%) and leading by example by talking openly about money themselves (35%). Jeremy Beament, co-founder of nudge commented: “This year’s events have had a huge impact on many aspects of people’s lives, including their financial wellbeing – and this is taking a toll on business performance and produc vity. There are powerful ac ons that employers can take right now to help employees feel more in control of their finances, from opening up the conversation about money within the workplace to helping them develop the right skills and knowledge. Not only will this improve their general wellbeing, it will enable them to dedicate more me and a en on to their job – boos ng overall company performance. But these initia ves must be driven from the top. Leadership teams have a responsibility to empower every level of their business and ensure their teams feel supported as we navigate this uncertain period.” With half (52%) of the UK’s workers surveyed worrying about money at least once a week and almost one in five (18%) doing so on a daily basis, financial stress is having a tangible impact on the workplace. 40% of employers say employees have lost concentra on and made mistakes as a result of money worries, while 35% have no ced staff being unproduc ve at work. A quarter (26%) of employers believe that members of their team have called in sick due to money worries. In fact, employers who report poor financial wellbeing amongst their teams are seven times more likely to have seen a drop in produc vity this year, and eight mes more likely to have seen a drop in performance, compared to those reporting good financial wellbeing.
