Neyber Financial Wellbeing Report Issued
Two-thirds of employees in UK facing financial stress
Published in December 2019, Neyber’s report, the DNA of Financial Wellbeing, which has surveyed over 42,000 people since 2016 suggests that absence, productivity and turnover of staff costs UK employers over £15.2 billion per annum.
The report shows that employees’ financial woes are indeed a burden on employers as their spending habits (and results thereof) are a direct contributor to lost revenue at firms. With this report looking at 11,000 employees and 720 employers across the UK, we see that 20.3 million UK workers, or 3 out of 5 workers, are worried about their personal finances.
Two-thirds of employees facing financial stress
Key numbers from the report show that:
- Businesses with 1,000 employees lose approximately £450k annually;
- This has led to 11% of employees currently looking at new opportunities in the job market as a potential solution;
- 10% struggle to focus on their work;
- The second major concern is retirement (on top of day to day financial worries);
- 5 days absence each for those who take time off for financial worries.
This leads to cumulative figures across the country:
- The cost of this is £15.2 billion, with 3.6 million employees looking for a new job (this includes the estimated replacement cost of employees);
- £516 million in lost productivity, as nearly 3 million people struggle to focus at work (Assuming only 1 hour per month of lost productivity (1.5 days/year) at the average daily wage of £117);
- £478 million in absence, from 1.63 million employees taking time off work.
Nevertheless, Neyber also reports that 73% of employers are now offering, or have in place, a wellbeing strategy for employees. However, only 40% feel this strategy is enough, with only financial wellbeing being placed low – only 4% of employers say this is a priority.
The numbers are telling: e.g. London City Airport
- 22% of the airport’s employees living month to month;
- 21% do not have confidence in managing their finances;
- With 70% of employees in an operational role, London City Airport feels this could lead to operational issues (accidents at work, for example);
The report can be seen in full here (your contact details will be requested).