Having positive financial wellbeing not only makes for a happy home, but it also means we’ll be happier at work.
No worries about paying bills, the commute to work or the weekly food shop.
However, according to a two-year study done by Aviva, nearly two in three (65%) employees are ‘just getting by financially’.
How Do Employee Saving Habits Affect Their Employers?
Research from Aviva’s report, Evolving in the Age of Ambiguity, highlights the positive influence of good financial wellbeing on individuals while they’re at work.
It shows the associated benefits range from better mental and physical health outcomes. It also links to improved feelings of job satisfaction, security and stability.
Nearly half (45%) typically find they have no money left over at the end of the month. More than one in four (28%) employees feel their finances control their lives.
Moreover, 65% of employees find their saving habits leave them feeling financially exposed in at least one area covered by the research.
What Does Aviva Suggest To Employers On Employee Financial Wellbeing?
Aviva has called on businesses to focus on support for employees’ financial wellbeing. If they don’t, they will face increasing pressure to attract and retain talent.
A record 1.17m jobs stand open and more than four in five industry sectors report unprecedented demand for staff, says the Office of National Statistics (ONS).
The call for action from the third installment of a two-year study into the evolving workplace. It reveals that only 35% of employees are showing signs of practicing good saving behaviours.
Further, the findings also reveal more than two in five employees (43%) do not feel financially on track.
Businesses Need To Support Employees On Financial Matters
The results highlight the need for businesses to better support financial education in the workplace.
Especially as rising inflation is likely to mean finances having a bigger impact on people’s wellbeing and decision-making.
Laura Stewart-Smith, head of workplace savings and retirement, Aviva, comments: “The pay-off from practising good saving behaviours extends well beyond a number on a bank statement and being able to afford what you want now and in the future.
“Our research shows people’s underlying sense of security and wellbeing—physical and mental, at work and at home—can be fundamentally impacted by the act of saving, with potential benefits in almost every aspect of day-to-day life.
“With many people facing financial challenges, these findings present a new opportunity for employers to build deeper, lasting relationships with their employees by taking steps to support their financial education and wellbeing.”
Why Do Employees Struggle To Save Money?
Aviva’s findings show the ability to maintain good saving behaviours is strongly linked to people’s current and future financial health.
Also, saving plays a significant role in ensuring people’s financial situation does not impact negatively on their mental or physical health.
Employers can also unlock hidden business benefits by encouraging and enabling a saving culture among their staff. The study shows good saving behaviours can result in a number of positive outcomes for firms, including:
- Boosting employees’ sense of job security and stability
- Reducing employees’ sense of being stuck in a job due to a lack of opportunity elsewhere
- Improving employees’ sense of being on the right career path
- Boosting employees’ job satisfaction and enjoyment
How Do Financial Behaviours Benefit Employees At Work?
“Saving behaviours are not only good for financial preparedness, they can also empower people in their careers,” explains Stewart-Smith.
“The fact so many people feel financially exposed suggests there is a mountain to climb, but as people start to plan career moves for 2022, now is the time for businesses to act to support employees’ wellbeing and engagement to boost retention.”
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