The final report prepared by the Financial Advice Working Group for HM Treasury and the FCA has shown some shocking results about financial stress in work. The question is – what are we doing about it?
The report, which you can read here, shows a strong link between peoples’ financial circumstances and their overall well-being, with 90% of employers agreeing that performance at work of their employees is heavily affected by their worries about finance and if left unchecked, can directly affect attendance.

Evidence from the report shows that poor financial well-being can affect physical, mental and social wellbeing, which can result in poorer job performance, short-term decision-making, a reduced ability to concentrate, absenteeism and lower productivity.

The cost of financial stress for employers:

  • One in four workers say they have lost sleep over money worries, with poor sleep contributing to reductions in people’s concentration and quality of performance.
  • 70% of the workforce spend a fifth of their working hours worrying about money.
  • Higher levels of financial stress can also result in higher absenteeism – a study found that in Europe, 6.2 work days a year were lost to absence in a group with high financial stress, compared with 3.8 work days a year in a low financial stress group. his kind of absenteeism and presenteeism (people coming to work ill) cost businesses approximately 4% of payroll costs per year
  • Employees’ ability to focus on their job is severely compromised when they have money worries.
  • CIPD found that money worries were the biggest source of stress to UK employees.

Financial stress costs the UK economy £121 billion and 18 million working hours in time off work each year.

(Source: www.fca.org.uk/publication/research/fawg-financial-well-being-workplace.pdf)

It is for these reasons that East Sussex Credit Union is working with employers directly to establish Workplace Savings Scheme in the county. As an ethical savings and loans co-operative we provide access to financial services for everyone, including those who are financially fragile. We foster a responsible attitude towards credit, assisting in the welfare aspect of being a caring employer. Our Workplace Savings Scheme is a great way to provide your employees with saving facilities and an easy and accessible way to affordable, friendly, fair credit.