Almost Half of UK Employers Provide no Financial Support or Advice to Their Employees Beyond Paying Them
- 07.04.2021 04:08 pm
A new consumer report, Money on our Minds, has today revealed the findings of a study* into the current state of financial health and wellness amongst UK employees. The latest data from PayDashboard, a leading UK digital pay company, has revealed that 84% of Brits worry about their finances, with 70% saying it is COVID-related. Over a third (38%) of the UK is, or has recently been, in serious debt.
The insights also uncovered that 18-34-year-olds have been the most impacted, with 84% stating that financial worries are having a negative and potentially harmful impact on their health. A further 1 in 4 within this age group said that the pandemic has made them worse with how they spend their money.
Employees want much more support from bosses
The new study has demonstrated the need for greater support around pay and financial health at work, as well as better advice online. Although, many Brits (76%) are independently, actively working to improve their finances, almost half of those surveyed (40%) said that they got little or no financial advice and support from their employer. A further 43% indicated that support around pay would equal job loyalty, as they would be more likely to stay longer at their current employment if they had access to financial health advice and support from their company.
Lack of financial support information online and regular pay confusion
The PayDashboard findings also demonstrated a need for more simple and concise financial advice online. 1 in 5 Brits do not think there is enough information or tools available to them to help them make smarter financial decisions.
The study revealed regular confusion around wages and understanding tax or pay calculations. 62% have, at one time or another, felt confused about their pay or details of their payslip. Almost 1 in 10 (9%) admitted that they struggle with this every single month. A further 63% have never received support or any tools to help them understand their pay calculations.
Laura Hughes, Head of Engagement at PayDashboard, commented on the findings. “It’s unsurprising that the COVID pandemic has put additional financial pressure on the UK’s workers. However, there is a clear need for better availability of simple and concise guidance around pay related issues. With the personal allowance now frozen at £12,570 until 2026, and many UK companies not in the position to award pay rises linked to inflation, UK households will feel the pinch over the coming years and lead to financial health challenges. Employers must find other, cost-effective ways to step up and ensure their employees are given the support they need and deserve.”
As part of its commitment to solving some of the more challenging pay problems, PayDashboard recently launched a platform called Moneysmart, a financial wellness marketplace that intelligently matches users to products and services designed to make their money work harder. One of its key partners is the mental fitness specialist, 87%.
Commenting on the findings, Dr Serra Pitts, 87% Clinical Director and Associate Fellow of the British Psychological Society, added, “This research is timely because of the increased pressures of Covid-19 on so many areas of our lives, particularly financial instability. There is a strong link between financial worries and mental health problems and we are prone to bottling up how we feel about money because of sensitivities surrounding the subject, making things worse. Those who struggle with money worries are more than twice as likely to suffer from depression and anxiety, five times more likely to have troubled relationships and eight times more likely to have sleepless nights"
Further key findings:
· The three most common COVID-related worries are: reduced pay/income (37%), being unable to financially plan long term due to financial uncertainty the pandemic has brought (30%), and job insecurity/redundancy prior to the pandemic (28%).
· 57% say that these worries have had an effect on their health, with 49% saying that their mental health had been affected.
o Of the 57%, 48% have lost sleep, followed by 46% who have felt more anxious, and 35% who have become more depressed.
· The three leading causes of money issues/debt are: credit cards (56%), finance commitments (27%), and borrowing from loan companies (24%).
· The most likely events this year or last to cause debt have been: reduced pay at work (28%), increased spending from online shopping (25%), and reduced hours at work (24%).
· Outside of the Covid-19 pandemic, the most likely reason to worry about finances is having a low pension when retiring (27%), followed by the state of interest rates (23%), and low pay/income from work (23%).
For better advice on financial health, support and wellness visit www.wearemoneysmart.com