As the UK government prepares to unveil its “painful” October budget, businesses and individuals face anticipated financial difficulties.
- Employers are being strongly advised to prioritise financial wellbeing, as financial stress significantly affects mental health and workplace productivity.
- A report finds that one in four UK adults lacks financial resilience, urging companies to offer better support to mitigate potential workforce disengagement.
- Stribe research indicates that financial worries lead to employee absenteeism and job-switching for better security, making timely interventions crucial.
- Companies are encouraged to implement financial education, adjust benefits, and introduce wellbeing surveys to support employee needs effectively.
The forthcoming October budget, deemed “painful” by the government, is expected to usher in considerable financial challenges impacting both businesses and individuals. With escalating money-related responsibilities, experts stress the importance for UK employers to focus on improving the financial wellbeing of their staff. This is particularly vital as financial stress is identified as a significant contributor to mental health issues and workplace anxiety.
Kieran Innes, Founder & CEO of Stribe, highlights the impending Autumn budget as a source of increased employee financial anxiety. In his words, “it’s more important than ever for businesses to act now to help their teams feel more secure.” The ongoing cost-of-living crisis exacerbates this issue, with the Financial Conduct Authority reporting that about 12.9 million UK adults exhibit low financial resilience, equating to roughly 25 percent of the adult population.
Research conducted by Stribe reveals a direct correlation between financial concerns and reduced employee engagement and productivity. Such concerns not only result in increased absenteeism but also prompt employees to seek more financially secure employment opportunities elsewhere. The organisation emphasises that employers should understand how their team’s financial health is intricately linked to their overall job performance and retention.
Stribe’s CEO urges businesses to prepare robust financial wellbeing initiatives to prevent workforce burnout and disengagement. While salary increments and bonuses might not be feasible for all, companies can initiate smaller but impactful measures. These include providing financial education, revising benefit packages, and adopting flexible working arrangements to bolster employees’ financial security.
The rising costs and stagnant real wages further press companies to be proactive. This call to action includes offering financial education through workshops or tools, adjusting benefits like flexible hours or discount schemes, and regularly consulting employees on their financial concerns through anonymous surveys. Mental health resources should also be readily available, recognising the nexus between financial stress and mental wellbeing.
Ultimately, supporting employee financial wellbeing is not merely a moral duty but a necessity for sustaining a successful and healthy workforce.
