Top Financial Health Issues in UK Workplaces
Typically health and wellbeing gives priority to the physical and mental welfare of an individual, however, financial wellbeing also needs to be given due attention.
According to The Money and Pensions Service, before the pandemic:
- 11.5 million people had less than £100 in savings to fall back on.
- 9 million people often borrowed to buy food or pay for bills.
- 22 million people said they don’t know enough to plan for their retirement.
- 5.3 million children didn’t get a meaningful financial education (Financial Capability Survey 2018).
And these statistics aren’t thought to have improved, if at all, particularly with the cost of living crisis coming into play.
There are many different resources, products and services which can help clarify and develop financial acumen, improve stability and monetary planning. It’s through providing educational resources, such as digital booklets and webinars, or giving tangible guidance and resolution, such as one to one appointments with an independent financial advisor, for example, that you, as an employer, can support your individual employees' financial health.
Financial health conditions can significantly impact employees' overall wellbeing and productivity. Some of the top financial health conditions that companies report employees suffering from in the UK include:
Debt: High levels of personal debt, including credit card debt, loans and mortgages can cause stress and anxiety for employees. Financial pressures resulting from debt may lead to decreased job performance, absenteeism and mental health issues
https://www.stepchange.org/how-we-help/debt-calculator-tools.aspx
Living Paycheck to Paycheck: Many employees struggle to cover basic living expenses with their income, living paycheck to paycheck. This financial instability can cause constant stress and anxiety, as individuals worry about meeting their financial obligations and emergencies
Lack of Emergency Savings: Employees who do not have adequate emergency savings may face financial hardship when unexpected expenses arise, such as medical bills, car repairs or home maintenance. The lack of a financial safety net can contribute to stress and financial insecurity
Retirement Savings Shortfall: Insufficient retirement savings or pensions can cause anxiety among employees, especially as they approach retirement age. Concerns about financial security in retirement may lead to decreased job satisfaction and productivity
https://nationalpensionadvisors.co.uk/v1/
Financial Literacy and Budgeting Skills: Some employees may lack basic financial literacy skills, such as budgeting, saving and investing. This can result in poor financial decision-making, leading to financial stress and hardship
https://themoneycharity.org.uk/
Unmanageable Student Loan Debt: Employees burdened with student loan debt may struggle to make payments, impacting their financial stability and wellbeing. Student loan debt can delay major life milestones such as home ownership and retirement savings
Addressing financial health conditions among employees requires proactive measures from employers, such as offering financial wellness programmes, retail discount schemes, subsidised healthcare plans, providing access to financial education resources and promoting savings and debt management strategies. By supporting employees’ financial wellbeing, companies can improve morale, productivity and overall job satisfaction.
References:
What is Financial Wellbeing? Money and Pension Service
https://maps.org.uk/en/our-work/uk-strategy-for-financial-wellbeing/what-is-financial-wellbeing#
Using The Power of Linked Data To Understand Factors Preventing People From Working
https://blog.ons.gov.uk/2023/12/05/using-the-power-of-linked-data-to-understand-factors-preventing-people-from-working/
8 Million People Need Debt Advice In the UK - So Why Aren’t They Accessing It?
https://maps.org.uk/en/media-centre/financial-wellbeing-blog/2024-financial-wellbeing-blogs/why-arent-people-accessing-debt-advice
The UK’s Debt Landscape in 2023
https://maps.org.uk/en/media-centre/financial-wellbeing-blog/2024-financial-wellbeing-blogs/the-2023-UK-debt-landscape
At Body Mechanics, we help you create health and wellbeing programmes which are effective and fit for purpose. We want to help you create a workplace where health, wellbeing and happiness are ingrained in your company culture.
If you’d like to discuss how to go about developing and implementing a health and wellbeing programme and/or a health and wellbeing framework, please get in touch. We’re happy to help.
enquiries@bodymechanics.co.uk