Staff financial well-being

 

Fact: Employees are worried about their finances

As a direct impact of the recent banking crisis, recession and austerity measures, many working families are now just getting by – resulting in a silent problem that many organisations have been ill-equipped to deal with and many have not grasped the magnitude of this issue.

 
 
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46% of employees worry about their finances

Almost half of staff surveyed by Barclays said that they worry about their finances. If this level of worry is left unchecked and continues over an extended period, it can result in significant stress levels impacting your employees’ ability to focus and perform at their best.

1 in 5 employees lose sleep worrying about finances

There is an eye-watering number of employees that are acutely concerned with their finances and how it is starting to impact their lives physically.  Not being able to sleep will directly affect performance at work and consequently the health of that employee.

Should your organisation be concerned?

 

A decreasing number of business leaders still think there is a barrier that exists between the personal life of the employee and their work life.  Increasingly this barrier is proving to be artificial.  When employees have personal problems, these problems stick with them in the workplace.

 
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When staff have financial problems, they don’t magically drop the problems off at the revolving doors as they come into work in the morning!
— Frank Mukahanana
 

Any impact to the organisation?

These personal financial worries can translate into real business problems like low staff engagement, loss of productivity, distracted employees at work and absenteeism.  All of this has a real cost and impact to the organisation.

 
 

4% impact to the business bottom line

Because of absenteeism, low performance and lack of engagement staff productivity has been lost and this impacts about 4% of the bottom line of businesses. In a climate where businesses are having to work extremely hard to generate profit – 4% is significant and cannot be ignored.

5% absent from work 4.2 days per annum

Due to illnesses related to financial worry, as many as 5% of employees have been absent from work for an average of 4.2 days each year.  For any organisation where their staff are core to their success, this raises heightened concerns which the firm needs to address urgently.