Employers can help their employees to become more productive simply by helping with money worries. We look at two reports this year which taken together can help UK businesses to understand the link between lack of savings and poor performance – and what employers can do about it!
By Rachel Bentley
Employees in the UK are in danger of not only losing their home if they are suddenly not able to bring money into their household, but will lose their entire lifestyle. UK employees have just over one month’s savings to maintain their lifestyle if their income suddenly stopped, according to a recent survey of 2,000 people by Legal & General.
As a general rule, advisers would suggest people have at least three months of salary saved in case of emergencies. But the research discovered that, on average, savings would last for just 32 days. Out of the people surveyed, around 1/5 said they’d less than £500 in savings, with over 1/4 said their savings would run out in a week or less, and a similar figure had nothing at all to fall back on.
Research by the CIPD in association with Close Brothers earlier this year looked at employee financial wellbeing and what affect that has on workplace performance. One of the main findings was that one in four workers’ money worries affect their ability to do their job, with this being especially true for younger workers.
Low financial well-being is associated with higher employee absence and stress, and poorer employee mental health, performance, and decision-making and focus. So considering the 2 pieces of research together, there is action to be taken in the workplace to alleviate money worries which in turn can lead to improved productivity and a happier workforce. Boost financial well-being and we can boost performance!
There are several things employers can do to help employees create a greater financial safety net for themselves. Here are some of the ideas taken from CIPD/Close Brothers report:
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Leeds based HR180 is a team of superheroes in HR Outsourcing, Projects and Consultancy committed to work in partnership with organisations of all sizes to establish working policies to go above and beyond Employment Law requirements, to protect both employees and employers alike. We love to hear from you, so call us on 0113 287 8150 or hit the Rescue Me button.