Financial concerns affecting worker performance

A quarter of employees have financial problems that are affecting their performance at work.

A CIPD survey of over 1,800 UK employees found that 31% of those aged 18-24 are facing financial concerns that they feel are negatively impacting their ability to do their job effectively.

20% of those earning £45,000 – £59,999 say that financial problems have affected their ability to work. This is more likely among women (28%) compared to men (23%).

According to those surveyed, the most important aspects of financial well-being are:

• earning a significant wage (75%)
• being able to save more for the future (55%)
• being rewarded for hard work in a fair and consistent way (54%)
• being able to pay off debts (45%).

Charles Cotton, reward and performance adviser at the CIPD, said:

“With 1 in 4 admitting it negatively impacts their work, it’s clear that organisations should be focussing on financial well-being as part of their workplace agenda.”

The importance of the working environment

According to the CIPD, 41% of workers want to be rewarded and 26% want to be able to save through a pension to improve their financial well-being.

Employee recognition can demonstrate value to people and your business. Non-cash benefits such as social functions, company cars and in-house facilities can also boost morale and productivity.

Some benefits may require you to pay PAYE and national insurance contributions on them.

We can help you with your reward strategy.  Contact John Elliot.