Supporting Staff with Money Worries

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A ‘Win-Win’ for Employers and Employees

About 1 in 5 workers are often distracted by money problems.  

Helping employees with their financial issues could improve work performance and save employers money.

Providing money and debt advice and education services can reduce the amount of time individuals are away from work due to stress, anxiety or worry…… and by addressing the reasons for being absent and supporting your team, employees will be more engaged, present and productive when at work!

The Problem & Costs

The Cost of Absence at Work for Employers

Team members being absent can be really difficult for any employer to manage, but especially so for smaller businesses.

In the UK, it is estimated that workers being absent due to financial worries cost employers £3.7 billion in 2023. About 12% of employees took time off because of money worries, costing employers about £237 per day for each employee who misses work. This adds up quickly, especially for small businesses that can’t easily cover these costs.

It is estimated that for small business with 10-49 employees, the financial loss in 2023 was over £2,600. For large organisations the loss is estimated at over £188,000, per organisation.  (The Aegon Report, 2023)

The Cost when the Root Problem is not addressed

Employees may attend work when struggling with finances but studies show that many people who worry about money display signs of being unable to focus and lack concentration, impacting on their ability to be productive. This cost UK employers an estimated £6.6 billion in 2023. From 2021 to 2023, there was a big rise in employees losing more than 2 hours of productivity each day.

It is estimated that for small business with 10-49 employees, the financial loss in 2023 was over £4,700. For large organisations the loss is estimated at over £338,000, per organisation.  (The Aegon Report, 2023)

The Solution

Navigate CIO has worked with organisations such as Oxford Brookes University to support their staff with financial coaching and debt advice to help them manage their money, with all employees completing feedback surveys reporting:

  • Feeling less worry and anxiety about money
  • Feeling better able to cover essential living costs like gas, rent and food shopping and bus fares
  • Feeling more confident to manage money and plan for the future
  • Feeling better equipped if they come up against a financial problem

Talking about money and supporting your staff can have huge benefits.

Here’s why:

1. Reducing Financial Stress

  • Money worries are the biggest cause of stress for UK employees. The Financial Capability Strategy for the UK shows that 60% of workers state that financial worries prevent them from performing their best and one in five employees think their financial situation affects their work. Leading to:
  • Missing Work: Financial stress can make people sick, causing them to take more days off.
  • Lower Productivity: When employees come to work worried about money, they can lack focus and don’t work as well.

By providing financial education and resources, employers can help reduce this stress. When employees feel more confident managing their money, they worry less and it will save employers money!

2. Improving Financial Literacy

Teaching employees about money helps them:

  • Make Better Financial Decisions: They learn to budget, save, and manage debt, which prevents financial crises.
  • Feel More Secure: Understanding finances leads to long-term stability, reducing stress that impacts work.

Navigate also finds that providing a safe, friendly and encouraging environment helps to reduce the stigma often associated with talking about money.

3. Enhancing Employee Wellbeing

Supporting employees’ financial wellbeing improves their overall health and job satisfaction. According to FinCap, a third of employees state that they would move to a company that has financial wellbeing as a priority.

Why is this important?

  • Higher Job Satisfaction: Employees who feel supported by their employer are happier, more loyal and more productive.
  • Better Mental Health: Financial education reduces anxiety and stress, leading to fewer sick days.

4. Increasing Productivity

When employees worry less about money, they can focus better at work:

  • Higher Productivity: Less financial stress means employees are more engaged and efficient.
  • Better Team Dynamics: Employees not distracted by money problems contribute more effectively to team projects.

Conclusion – We Can Help…

Giving employees access to advice and education to build their own financial resilience is a smart move for businesses. It reduces stress, improves health, and makes for a happier working environment. For employers, this means less missed work, better productivity, and cost savings. Businesses can create a healthier, more productive workplace, benefiting both employees, employers and the community.

Navigate can help! If you would like to discuss our employee assistance schemes please contact Mel Allen by email at mel@navigatecharity.org.uk or call 01823 299050.