Businesses are paying the price of stressed staff as pandemic

Businesses are paying the price of stressed staff as pandemic money pressure takes its toll

With some staff understandably anxious about money, many businesses are feeling the knock-on eff ect as the recession hits – and it’s up to the c-suite to save them. Four in 10 (41%) employers surveyed say that increased fi nancial stress amongst employees has negatively impacted their business this year - almost three ঞ 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 fi nancial wellbeing pla orm nudge, which is urging businesses to open up the conversaঞ on about money and help staff upskill and take control of their fi nances, to alleviate addiঞ onal workplace stress and reduce business disrupঞ on. Seven in 10 employers agree that employees' financial wellbeing has become more of a priority to them since Covid-19. But more clearly

needs to be done, as two thirds (66%) of employees surveyed feel that their company provides li‚ le or no support for their fi nancial 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 organisaঞ on`s board or upper management could better support them when it comes to promoঞ ng the fi nancial wellbeing of their employees, within that by providing HR with more autonomy to implement appropriate soluঞ ons (44%). And with 75% of those surveyed agreeing they feel comfortable talking about an employee's fi nancial situaঞ on and wellbeing, businesses would also benefi t from leadership teams promoঞ 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 fi nancial wellbeing – and this is taking a toll on business performance and producঞ vity. There are powerful acঞ ons that employers can take right now to help employees feel more in control of their fi nances, 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 ঞ me and a‚ enঞ on to their job – boosঞ ng overall company performance. But these initiaঞ 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 fi ve (18%) doing so on a daily basis, fi nancial stress is having a tangible impact on the workplace. 40% of employers say employees have lost concentraঞ on and made mistakes as a result of money worries, while 35% have noঞ ced staff being unproducঞ 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 producঞ vity this year, and eight ঞ mes more likely to have seen a drop in performance, compared to those reporting good fi nancial wellbeing.

A new level of urgency has emerged around this problem, as almost half (44%) of employers report a parallel rise in mental health issues amongst their teams over the past six months. With fi nancial wellbeing closely linked to mental health – 25% of employees claim their mental health has suffered as a result of money worries – it’s important for employers to dial up support in this area now. Susanne Jacobs, founder of The Seven and expert in trust, psychological safety and intrinsic moঞ vaঞ on, added: “When we lack fi nancial security, our brains switch us into threat mode. This diminishes our cogniঞ ve performance, increases our error rate and negaঞ vely impacts our wellbeing. All-consuming worry can play out in behaviours such as presenteeism, absenteeism, working longer hours and affected sleep and eating patterns. With the pandemic amplifying fi nancial concerns, employers need to act now and support their staff to avoid a second epidemic of burnout. Pracঞ cal tools that help employees improve their skills and knowledge and take be‚ er control of their money will pay dividends in health and performance.” When it comes to improving the fi nancial wellbeing of employees, the good news is that businesses don’t have to boost financial rewards to do so. More employees consider it to be important to have the skills and knowledge to manage their money (85%) and to feel in control of their finances (87%), when it comes to their fi nancial wellbeing rather than earning as much as possible (64%) - with 87% suggesঞ ng they only need enough money to live comfortably. Employers with a fi nancial wellbeing soluঞ on in place believe it has a tangible impact on their business, with 43% staঞ ng that it helps with employee retenঞ on and makes employees happier. 37% suggested that it helps increase employee engagement and makes them look like a more responsible employer, while 34% said it makes employees more financially literate, which increases their eff ecঞ veness in their role. 33% agree that it increases employee producঞ vity.

Vodafone case study

Commenঞ ng on Vodafone’s approach to managing financial wellbeing within the workplace, the company’s reward manager Georgia Rule said: “The wellbeing of our staff is hugely important to us. It impacts everything from productivity and engagement to retenঞ on, which is why we invest so much ঞ me and resource in promoঞ ng it – and that includes helping our team to feel comfortable and in control of their fi nances, parঞ cularly during this diffi cult ঞ me. We’ve worked hard to limit fi nancial stress for our own employees during the pandemic, but we’re sঞ ll mindful that other members of their households may have been impacted – another potenঞ al source of fi nancial worry. So we provided educaঞ onal resources and off ered Financial Wellbeing webinars to give basic support around budgeঞ ng and how they could use Vodafone’s fl exible benefi t platform to make their money go further.” “Vodafone also introduced a Wellbeing newsle‚ er to support employees not only with their fi nancial wellbeing but also their physical and mental wellbeing. And we let them know about other forms of support available, such as our Employee Assistance Programme and our flexible working arrangements that enabled employees to juggle work with caring responsibiliঞ es, for example. These measures, coupled with regular staff surveys, gave us valuable insight into what our employees needed, thereby enabling us to support them appropriately.” To help businesses support their employees’ fi nancial wellbeing, nudge has published a new report – “Elephant in the workplace”. To download a copy, please visit h‚ ps://bit.ly/3bvYgco