1 In 5 Employees Couldn’t Survive Longer Than A Week On Savings

Employees Can’t Pay Monthly Bills Let Alone Save For Emergencies

45% of employees say that they are stressed, and one of the leading causes for this stress is money (43%). Despite inflation being at an all time high, and the cost of living going up and up, many employees haven’t seen their pay increase. As a result of this saving is becoming harder and harder.

33% of Employees Have Had To Borrow Money To Pay Everyday Bills

Many don’t have enough to pay their monthly bills as it is, let alone put money aside for emergencies. 33% of those we surveyed said that they have had to rely on borrowing money to pay everyday bills.

• 16% of employees have used a credit card
• 11% have entered their overdraft
• 5% have borrowed from family and friends
• 1% have used a pay day loan.

Lack Of Financial Security Can Lead To Poor Performance At Work

If employees do become sick or injured but fear that they won’t be able to cover their essential outgoings this could lead to presenteesim. A practice where an employee is physically present, but not necessarily productive. Not only is going to work whilst unwell not good for employees, it also has a knock on effective for employers.

If employees are present but not carrying out task effectively, this can lead to poor business performance. A study by RAND found that nearly 38 productive days on average are lost per employee to absence or presenteeism. This is in turn will have an impact on a business financially.

1 In 5 Feel Like The Cost of Living Is Impacting Their Work Performance

We asked employees whether or not they felt that the cost of living had negatively impacted their mental health, nearly half (47%) said that it had. Not only this, 1 in 5 also said that they thought it was impacting their performance at work.

Providing Your Staff With Financial Security

Businesses across the UK are facing financial difficulty too and for many it may seem like a good idea to keep costs down in terms of employee benefits. However, by increasing the level of sick pay you offer, or by implementing benefits which help provide financial security you could save your business money in the long run.

For employees, knowing they have financial security can help relieve a lot of stress which can lead to improved mental and physical wellbeing. This in turn can reduce presenteeism and absences. There are a number of benefits which can help to do this:

• Group Income Protection
  Can provide employees with financial security by giving them a monthly income should they be unable to work due to accident or sickness.
• Employee Discount Schemes
  Can help employees save hundreds if not thousands of pounds on everyday costs. The money saved can be put towards building up a savings fund or to alleviate other financial pressures.
• Salary Sacrifice Pension
  A salary sacrifice workplace pension can help boost your employees net pay due to its tax efficiencies. Not only will your staff be saving for their financial future but they will also be better off each month.

At Drewberry™, we help businesses of all sizes in all industries to set up their benefits package and workplace pension.

We can also offer individual pensions and financial advice.

If you need help get in touch on 02074425880  or email help@drewberry.co.uk

Nick Nelms
Senior Consultant, Employee Benefits