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.
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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.