Over the past year, the financial wellbeing of UK workers has been put to its biggest test since the 2008 financial crisis. But unlike cheap credit, the insidious and unpredictable effects of Coronavirus impacted every aspect of our economic, social, and cultural structures. Never have consumers had to face so much financial uncertainty or needed so much financial support and assistance as they have over the past year.
In February 2021, PayDashboard surveyed over 2,000 UK employees in both full-time and part-time employment to understand the impact from their points of view. The report focused on three key areas:
- Financial situation
- Financial awareness
- Employer relationship
The findings were startling, revealing a nation where over half of the population frequently or persistently worries about their finances as a result of the pandemic.
Here are 4 statistics of many that were revealed in the report:
1. 62% said they receive little or no financial support from their employer
2. 77% of employees who currently receive financial support from their employer say they are actively staying in their role because of it
3. 1 in 4 Brits with money worries say these are entirely caused by the pandemic
4. 59% of 18-34-year-olds are currently in debt
But most noteworthy is the long-standing and undeniable elephant in the room: the direct correlation between financial wellbeing and poor mental health. While this has affected workers across all age groups and employment types, it hit hardest with Generation Z – those who should be feeling most hopeful and enthusiastic about their financial and professional futures.
The impact of financial worries on mental and physical health
The impact of financial concerns on consumer mental and physical health has been staggering.
Over half of UK workers surveyed have had their physical health impacted by financial concerns, with a further half reporting a negative impact on their mental health. But even more worryingly, financial concerns are forcing some to take refuge in drink and drugs, particularly in the 18-34 age group.
Sleep, anxiety, depression, drug abuse: these are the uncomfortable realities that many are facing as the pandemic ravaged their personal finances, reduced their income, and put any possibility of future financial planning on hold.
The role of the employer
But it was the statistics around employee retention and employer financial support that was most revealing. Good to know (or perhaps not), is the fact that 77% of respondents who received employer financial support remained in their jobs. With so much attention being given to wellbeing initiatives, employers cannot underestimate their importance in terms of employee retention and ultimately, in long-term cost savings.
But there is hope. With growing awareness and focus on employee financial wellbeing and the effects on mental health, solutions are available. PayDashboard’s interactive payslip and employee engagement features have made it possible for businesses to offer affordable and accessible employee benefits without major capital outlay or lengthy corporate contracts.
Employee financial wellbeing begins with the payslip
Employee engagement and financial wellbeing underpin PayDashboard’s cloud payslip solution. For organisations looking to enhance their employee wellbeing initiatives, the SmartSlip® can save you time, money and resources while promoting financial literacy across your workforce. The payslip represents so much more than pay data and tax deductions. Now you can give your employees access to a world of financial resources, guidance, services, tools and tips through the payslip platform.
Want to know more? We’d be happy to have a chat. Why not get in touch with us today, or book a demo at a date and time that is suitable for you and we’ll be happy to show you how you can add great value to your employee benefits programme with our SmartSlip® solution.