CIPD Voice: Why should employers be concerned about the financial well-being of their staff?

In April 2020, a CIPD survey of over 1,000 workers found that 39% of them had said that their financial security has worsened as a result of the Covid-19 lockdown. By contrast, just 12% had reported an improvement. While the economic impact of Covid-19 is having a negative impact on the financial wellbeing of the workforce, the question is whether this is something that organisations should be concerned about?

Those most likely to indicate a worsening in their financial security include: 

  • Those whose household income is less than £20,000 a year,
  • People working in Scotland,
  • Those with a disability,
  • Female workers; and
  • Private-sector workers.

For employees, money worries can result in:

  • Physical fatigue due to lack of sleep,
  • Inability to do their job and difficulty in keeping a focus at work,
  • Spending time dealing with financial problems, both during and outside of the working day.

For employers, this has implications for productivity, customer service, innovation and, ultimately, the bottom line.

Click here to view original web page at http://www.cipd.co.uk/news-views/cipd-voice/issue-24/why-should-employers-concerned-financial-being-staff?utm_source=mc

Charles has recently led research into the business case for pensions, how front line managers make and communicate reward decisions, and managing reward risks, as well as the creation of a good practice guide on the annual pay review process. He is also responsible for the CIPD’s public policy work in the area of reward and is a Chartered Fellow of the CIPD.

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