Financial experts can regularly be heard saying that people should have between 3-6 months worth of necessary expenses saved. This is to ensure that if unable to work, individuals would still be able to afford their monthly outgoings.
Drewberry’s latest Employee Benefits and Workplace Satisfaction survey, in association with YouGov, worryingly found that a large proportion of UK employees aren’t even close to this, leaving them vulnerable to financial difficulties if unable to work.
We surveyed 1,000 UK employees and found that 35% of respondents wouldn’t be able to survive on their savings for more than a month if unable to work.
More concerning, of that 35% 1 in 5 said that they couldn’t survive for more than a week.
If employees couldn’t survive on their savings, we wanted to know if they could fall back on the sick pay they receive from their employers. We asked ‘how long would your employer support you for with full pay while off sick?’.
21% said their employer would support them with full pay for 3-6 months, and 27% said they would get 6 months+. This is fantastic, however for the rest of the respondents it’s a different story.
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.
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.
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.
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.
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:
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 email@example.com
Senior Consultant, Employee Benefits