According to a new report published by YuLife, the tech-driven insurance company whose stated mission is to inspire life, around two-thirds (64%) of UK working adults are more worried about their financial wellbeing today than they were one year ago.
The report also highlights differing opinions between HR professionals and their employees with 58% of HR professionals feeling that their organisation creates an atmosphere in which employees feel comfortable telling managers they are experiencing financial stress but only 24% of UK working adults saying they feel comfortable doing so in practice.
These findings are particularly important during times of economic uncertainty as the feeling of being financially secure can have a huge impact on personal wellbeing and workplace performance and 66% of employees claim they are uncomfortable sharing financial stress with their workplace.
Cost of living crisis has encouraged employers to prioritise financial wellbeing
“The current cost of living crisis has exposed the financial vulnerabilities many are facing and has encouraged employers to prioritise financial wellbeing in an effort to plan for the future and cope with the unexpected,” said Sammy Rubin, CEO and Founder, YuLife. “This report demonstrates the growing responsibility employers have to ensure employees remain financially resilient and highlights the opportunity for workplaces to deliver programmes that have a significant positive impact on the lives of their employees. Employees who feel a stronger sense of financial wellbeing are more engaged and more productive in the workplace which, in turn, boosts companies’ bottom lines. By enhancing financial wellbeing, employers stand to gain from improved retention, reduced absenteeism and increased productivity – leading to a more innovative and resilient workforce that is well positioned for the future.”
54% of HR professionals agree that the financial crisis has meant they now offer more financial wellbeing support to employees than before. Yet almost half (41%) of UK working adults feel that their workplace does not have any policies and initiatives in place. Moreover, 16% UK working adults say they do not even know if their company has initiatives in place – alarmingly, only 5% of workers feel their company has a comprehensive set of financial wellbeing policies in place. Though employers and HR professionals are putting in significant effort to support their employees’ financial wellbeing, employees are still feeling the need for essential assistance to look after their financial stress.
The vast majority (91%) of HR professionals agree it is their responsibility to improve employees’ sense of financial wellbeing beyond paying salaries. From a range of options, a plurality of UK workers (37%) chose income protection (i.e. sick pay) or critical illness cover as their favoured policy a workplace can offer to help enhance their sense of financial wellbeing. Still, 20% of UK working adults feel that their workplace does not clearly explain the financial support it can offer to its employees to help with their financial wellbeing. This report highlights the need for both employees and employers to come together and discuss financial wellbeing issues to ensure no one in the workplace feels alone in their struggles.
Additional findings include:
- Workplace Responsibility.
o Employees: 43% of UK adults agree that it is a workplace’s responsibility to improve their sense of financial wellbeing beyond paying a salary and fulfilling a workplace’s legally mandated obligations such as benefit programmes, supplementary pension contributions, life or health insurance, and more. Just 21% disagree.
o HR Professionals:76% of HR professionals feel worried and concerned about their employees’ financial wellbeing. Only 2% of HR professionals say they are not worried at all.
- Increased Financial Support.
o Employees: 40% of UK working adults agree the rise in the cost of living increased the need for financial wellbeing support from an employer.
o HR Professionals: Almost all (99%) HR professionals feel the financial crisis has increased the need for financial wellbeing support for employees.
The report is based on the results of two surveys, one conducted in conjunction with YouGov, which investigated employees’ sense of financial wellbeing in the workplace, and the other with HR Ninjas, the UK’s largest online community for HR professionals, which investigated the state of financial wellbeing in the workplace from HR professionals’ perspectives.
The full results of the survey can be viewed here.