PROMOTING FINANCIAL WELLNESS
“ Our brains are magnificent things , but they only have a certain bandwidth that they are able to cope with . If our brains are clogged with worries and stressors , it can leave us with little room left for us to process other things ”
According to Neyber ’ s DNA of Financial Wellbeing report , financial worries are costing businesses £ 120bn a year , with approximately 17.5 hours lost a year with employees taking time off work because of financial stress . The report revealed that 55 % of employees believe that financial pressure affects their behaviour and ability to perform in the workplace , and that 50 % would value financial assistance from their employer .
Head of Insights and Engagement at Neyber , Heidi Allen , explains : “ We are all individuals , and financial worries can affect us all in many different ways – from stress and anxiety , to loss of sleep and depression . What is common across us all is that it can not only affect our relationships , both inside and outside of work , but also our behaviour and ability to focus .
The aftermath of financial stress on employees and their overall wellbeing is significant . Recent research by Close Brothers and CIPD found that 25 % of employees are worrying about money so much that it ’ s affecting their ability to do their job ( this rises to 32 % of employees in London and 31 % of 18-24 year olds ). Of these , 19 % are losing sleep over financial concerns . It ’ s not uncommon for employees to face money-based worries at various stages of their life , whether that ’ s dealing with spiralling debt , concerns over retirement savings or simply making the monthly budget work .
“ For those individuals who are losing sleep there is an obvious implication for their physical health and safety too . Everyone worries about money at some point in their lives , irrespective of age , career stage and wealth levels . The impact on individuals is obvious , affecting their ability to live the lifestyle they would like , to withstand financial emergencies and to save for their future . But there is also an impact on business , affecting engagement , productivity and ultimately business performance .”
AN ORGANISATION ’ S ROLE
According to research by Thomsons Online Benefits , although 65 % of employees rank financial wellness as important , only 7 % of employers are doing something to help . Over half of UK employers do not provide their staff with relevant financial benefits , and only 15 % of UK employers have a financial education programme . These figures demonstrate a concerning issue as organisations are failing to see the long term effect that it will have .
Jeanette Makings , Head of Financial Education , Close Brothers , argues : “ These results not only show the impact as harming an individual ’ s financial health but the likely knock-on effect on their stress levels and emotional health .
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