Almost three-quarters of employees are stressed about their finances, with two-fifths unprepared for financial emergencies, according to Hymans Robertson Personal Wealth.
More than a quarter (27%) of respondents to Hymans Robertson’s survey felt their financial situation was at crisis point or described themselves as struggling.
The cost of living continues to be the biggest concern for employees, the survey found, with 56% citing this. A quarter worry about paying off debts, and a further quarter are concerned about saving for retirement.
The company’s findings come as a separate survey reveals that 60% of employers do not offer some form of financial coaching.
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According to The Value of Financial Coaching, a report from TrinityBridge Workplace Financial Wellbeing Services, 87% of employees have not used financial coaching, and 28% do not think it is relevant to their financial situation.
The company describes this as a “knowledge gap” around financial coaching that is exacerbated by the fact that employees don’t feel they need to educate themselves about their finances.
Where financial coaching is offered – at just 12% of workplaces – it tends to be used by employees on higher incomes, TrinityBridge found.
Almost half (47%) of those earning more than £100,000 per year used the service where it is offered, dropping significantly to 18% of those earning £80,000 to 100,000, and 13% of those on £40,000 to £60,000.
For those who have used financial coaching, 37% feel more confident about managing their finances, while 34% say it has helped them to manage their money better. A fifth (22%) say financial coaching has helped to change their behaviours with money long-term.
Jeanette Makings, head of workplace wellbeing service at TrinityBridge said financial coaching needs to be an “essential component” of employers’ wellbeing strategies.
“The common thread running through this report is that financial coaching is highly valued by those that have used it, but for those that haven’t it, is frequently misunderstood. It evidences a strong need for more education as to what financial coaching offers and how it can help any financial situation.
“The positive impact of financial coaching for those who use it is both tangible and significant.
“For employers too, it offers a highly effective means of boosting financial wellbeing, increasing staff engagement, and empowering them to take control of their personal finances, with corresponding benefits for overall wellbeing, and productivity.”
Julie Hammerton, managing partner at Hymans Robertson Personal Wealth, said the company’s research on financial stress and education “paints a worrying picture” about the impact of financial worries on the UK workforce.
“Our research shows that low levels of financial resilience, and limited safety nets, are leading to high levels of financial stress,” she added.
“This will have an impact on how employees work, engage and function. These should be seen as warning signs; a workforce that’s living this close to the financial edge is more vulnerable to stress, disengagement and absence.”
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