Financial health is now the leading concern for employees, according to a new survey of more than 500 business owners.
Nearly a third – 30% – see financial wellbeing amid the cost-of-living crisis as the biggest worry for their employees.
The research for wealth manager and Financial Planning firm Evelyn Partners also revealed that work/life balance and mental health were seen as big concerns for workers at 29% and 27% respectively.
The factors came ahead of perceived worries over job security (24%), childcare during working hours (22%) and performance targets (17%).
Evelyn has launched what it calls a “ground-breaking” workplace financial wellbeing service to enable employers to support their staff, from new trainee through to the C-suite.
It said the move “will help plug the advice gap for those needing help to get their finances in better shape.”
It said employees of subscribing organisations will get 24/7 access to comprehensive digital support through a new app, that includes goals tracking and budgeting tools, educational content and financial health-checks.
Employees will also be able to view all of their accounts – including banking and pensions – in a single place via open banking and for those who wish to make investments, access to Evelyn Partners’ Bestinvest platform.
For senior executives with more complex financial affairs, the firm will provide executive consulting, enabling them to meet with financial planners and tax advisers and then choose whether to engage with them for formal, ongoing advice.
There will also be in-person and online bespoke educational seminars for subscribing firms on a range of topics, such as how to create a financial plan, saving for a house deposit, planning for retirement, and understanding existing employee benefits.
Tom Shave, partner at Evelyn Partners said: “The findings from our research among business owners is concerning and underlines that the health of their employees’ personal finances should be recognised as a business risk.
“Absenteeism due to stress is a significant problem and a factor driving worrying levels of economic inactivity in the UK. Employees under financial stress are far more likely to suffer mental health problems such as anxiety, sleep deprivation and a low mood, something that could impact their concentration levels and relationships in the workplace, dampening productivity in the process.”
He said many employers have become attuned to the physical and mental wellbeing of their employees in recent years, a consideration that accelerated enormously during the pandemic when staff were required to work from home or put on furlough.
As a result businesses are putting more effort and resources into the non-remuneration aspects of the packages they offer.
Mr Shave said: “Given the well-established link between money worries and stress, we believe that financial wellbeing should be considered as a core component of the benefits offered to staff.”
*A nationally representative survey of 504 business owners aged 18+ with turnovers of £5m+ was conducted for Evelyn Partners by Censuswide between 28 April 2023 to 9 May 2023.
