A quarter of people are suffering with money problems so substantial that it is affecting their ability to do their job, according to a new survey of more than 1,800 UK employees. The number reporting problems rises to a nearly a third (31%) among 18-24 year olds, and those living in London (32%).
The research, published by the CIPD and Close Brothers Asset Management, highlights why organisations need to be doing more to promote and actively support financial well-being, especially in a climate where pay will be squeezed as inflation rises.
The problem is not limited to low earners either, with one in five (20%) of employees earning £45,000 to £59,999 saying that financial anxiety has affected their ability to do their job. Meanwhile, women are more likely than men to report that money worries are affecting their work, with nearly three in ten (28%) women reporting the problem, compared with less than one in four (23%) men.
Charles Cotton, reward and performance adviser at the CIPD, the professional body for HR and people development, said:
The report also focussed specifically on what could be done to improve financial well-being. While earning a higher wage was the top cited solution, a third of employees (32%) did not include this in their top five, demonstrating that boosting pay was not enough. Other solutions chosen included being rewarded in a fair and consistent manner (41%), being able to save for the future through a pension (26%), and being able to develop and progress in their career (20%).
Jeanette Makings, Head of Financial Education at Close Brothers Asset Management, commented:
The report also found that:
• Physical fatigue caused by lost sleep worrying about money is the most common explanation for how financial concerns have impacted people’s productivity, with one in five employees (19%) reporting this
• Nearly one in three employees (30%) in the public sector say money worries have affected their job performance
• Workers in Wales are more likely to rate being able to comfortably pay off existing debts as an important aspect of their financial well-being (55%) than the UK as a whole (45%)
• Londoners (60%) are more likely than the UK as a whole (38%) to value being able to save for the future
Charles Cotton added:
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