Money Worries Affecting Workplace Performance
The inaugural Close Brothers Financial Wellbeing Index shows that 39 percent of employees worry about money ‘always’ or ‘often’, with younger workers the most affected.
The report shows that money worries are affecting more than 77 percent of employee’s working productivity, which obviously has a massive impact on companies nationwide.
Jeanette Makings, head of financial education at Close Brothers, said the problem was a “bottom line issue” that businesses needed to start acting on.
“If an employee is worried about money, they don’t park that worry in the umbrella stand at the door. It impacts their decision-making functionality, and they might use work hours to take care of issues, or take time off work. It starts to impact their overall health,” she said.
“All those factors and more mean businesses are not getting the best from their employees. This is a bottom-line issue [and] doing nothing is no longer an option.”
So-called ‘millennials’ are the most affected, with 87 percent admitting worrying about money whilst at work. Of those aged between 35-54 the figure drops slightly to 72 percent.
The same survey also surveyed more than 1,000 employers, and they found that most businesses “dramatically overestimate” their employee’s financial wellbeing. This is despite almost a quarter noting reduced productivity as a result of money-related stress. Other effects that money worries can have on productivity include; loss of talent, higher short-term absences, higher long-term absences, reduction in retirees, and higher healthcare costs.
“Despite the growing awareness of the need for workplace financial wellbeing, organisations seem to be struggling to find clarity, transparency and meaningful measurement on this issue,” said Makings. She said businesses were well placed to improve employees’ financial wellbeing, as they were able to provide better value for money on benefits than an individual and could distribute financial education, advice and investment solutions.