With January often the most financially challenging time of the year, and as people re-evaluate their financial position and set New Year resolutions, it may leave them feeling vulnerable and unable to concentrate at work. This presents an issue for organisations that don’t provide financial wellness training or support, as 50% of employees who are struggling financially are less productive, while 55% admit to working less carefully as a result of emotional problems that come from their financial stress.
According to The Future of Pay research by ADP, a leading global technology company, most employers (98%) admit that employee financial wellbeing impacts their business, particularly when it comes to productivity (67%) and engagement (62%). ADP believes that companies can no longer afford to ignore their employees’ financial concerns given that 79% of employees say they expect their employers to help them with their financial wellbeing.
The research study also shows that 90% of millennials say that they are willing to share at least some personal information, such as spending habits, bank balances, and healthcare needs, with their payroll provider to track finances in order to receive financial guidance.
Speaking about the Future of Pay research, Jeff Phipps, Managing Director at ADP, said: “A large proportion of people in the UK are living paycheck to paycheck. Many workers are paid early in December and that coupled with seasonal spending demands can leave many people really struggling in January. This can in turn take its toll on their health and work. Employers have an opportunity to provide support and to ensure their employees have access to high quality financial advice. It is important that employers tread carefully and demonstrate sensitivity and respect for personal circumstances. Done well, financial well-being programs can be a great way to help employees save money and reduce the “money worries”. Employers are not there to solve every personal problem but where we can do something that helps our employees come to work with one less worry is an opportunity to show we value and care about them.”
The Future of Pay research surveyed 4,000 employees and 2,900 businesses to explore workers’ perceptions and attitudes towards traditional and emerging pay methods to address some of the biggest human capital management concerns.