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23 Jan 2017

Financial concerns limit productivity for 25% of employees

New research has revealed that one in four UK employees say money worries affect their productivity levels at work, the CIPD website writes.

According to the survey, conducted by the CIPD and Close Brothers Asset Management, one quarter (25%) of employees are struggling with financial problems so severe, it is impacting their performance at work. This figure rises to 30% in the public sector.

What´s more, the issue does not just affect low earners, with one in five (20%) people who earn between £45,000 and £59,999 also stating that financial anxiety was limiting their ability to do their job.

Crucially, increasing staff´s wages was not found to be the solution to the problem; around a third (32%) of those surveyed did not cite receiving a higher wage as being among the top five solutions for their financial worries.

Based on these findings, the CIPD reminds employers that they have a duty of care to support their staff´s financial wellbeing; and that they must find more effective ways to promote financial wellbeing than simply increasing staff wages.

“Money worries affect people regardless of their age, gender or level of pay,” explains CIPD reward and performance adviser Charles Cotton, who added: “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.”

With rising inflation over the next 18 months causing additional pay squeezes and personal finance concerns, this will be an increasingly important issue.

Financial worries take their toll on people´s health, happiness and productivity, says Cotton, with almost one in five (19%) employees having experienced physical fatigue as a result of losing sleep over money problems.

When asked what their employers could be doing to help, the most highly-rated solution cited by employees was being rewarded in a fair, consistent manner (41%). This was followed by saving for their future via a pension scheme (26%) and having the opportunity to develop and progress in their career (20%).

Jeanette Makings, head of financial education at Close Brothers Asset Management, added: “Equipping staff with the tools they need to take control of their finances now and for their future will not only improve their own wellbeing, it has been proven to boost productivity levels.”

Copyright M2 Bespoke 2017

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