Financial Wellbeing Week: Why it’s so important for employers to give a DAM
Mental health issues and stress caused by financial problems are not confined to the time an individual spends outside the workplace, it can also have a negative effect on their working lives too.
Research from the Money advice service found that 21% of UK adults are ‘drowning in debt’ and money worries whilst Capita found just over 34% of employees feel stressed because of their current financial situation with 21% feeling that their financial worries have affected their work.
The DNA of Financial Wellbeing: Money and mindset found that there’s been a significant increase in the number of employees with financial worries – from 58% to 63% over the last year.
These money troubles manifest in various ways, the report found. Around a quarter (26%) of employees surveyed said they had lost sleep over it, one in 10 (10%) couldn’t focus on work, and 6% reported taking time off.
Unsurprisingly, this adds up to a substantial cost to businesses. Neyber calculated that the drop in productivity, increased absence and employee turnover associated with financial stress costs UK companies £12.07 billion each year.
It therefore makes good business sense for organisations to invest in financial wellbeing initiatives and to ensure they have a strategy in place to support staff.
And there are numerous ways that businesses can help staff with this - from providing financial education and group pension schemes, to an integrated healthcare approach, research has consistently shown that employees appreciate assistance with their health and wealth wellbeing.
So whatever stage you are at and however you implement financial wellbeing strategies in your organisation, this week our team at DAM will provide a range of insights to help you take it to the next level.
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