A quarter (25%) of employee respondents with money problems feel that this affects their ability to do their job, according to research by the Chartered Institute of Personnel and Development (CIPD) and Close Brothers Asset Management.
The survey of 1,817 adults also found that 41% of respondents believe that being rewarded in a fair and consistent manner would help to improve their financial wellbeing.
The research also found:
- Nearly a third (32%) of London-based respondents with money problems feel this affects their ability to do their job.
- 26% of respondents believe that being able to save for the future through a pension would help to improve their financial wellbeing.
- 31% of 18 to 24-year-old respondents with money worries feel this affects their ability to do their job.
- 20% of respondents who earn between £45,000 and £59,999 think that financial anxiety has affected their ability to do their job.
- 28% of female respondents report that money worries affect their work, compared to 23% of men.
- 30% of respondents working in the public sector believe money worries have affected their job performance.
- 60% of London-based respondents value being able to save for the future, compared to 38% of respondents from the rest of the UK.
- 19% of respondents report that losing sleep over financial worries has impacted their ability to their job.
Charles Cotton (pictured), reward and performance adviser at the CIPD, said: “This report shines a light on how financial wellbeing can impact not just employee health, but also workplace productivity. Money worries affect people regardless of their age, gender or level of pay, and with one in four admitting it negatively impacts their work, it’s clear that organisations should be focusing on financial wellbeing as part of their workplace agenda. This will become increasingly important over the next 18 months, as rising inflation is likely to lead to a pay squeeze and increased concerns about personal finances.
“Employers have a duty of care to their employees but will also see their bottom lines benefit if they invest time in developing a financial wellbeing strategy and play and active role in supporting staff in this area. Today’s businesses need to consider the impact financial worries are having on employee health, happiness and productivity and look at what they can do to help reduce stress levels.”
Jeanette Makings, head of financial education at Close Brothers Asset Management, added: “Pensions changes, increasing life expectancy, uncertain economic times, rising inflation and constant changes to the tax system mean that the financial landscape has never been more difficult to navigate. Money worries now weigh heavily on a huge number of employees around the country, impacting their performance in the workplace, so it is more important than ever that employers recognise the role they can play in helping staff to understand and improve their financial wellbeing.
“Equipping staff with the tools they need to take control of their finances now and for the future will not only improve their own wellbeing, it has been proven to boost productivity levels, benefitting both businesses and [employees].”