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“The more you can support employees with some of their lifestyle choices, they become naturally more trusting around the financial elements."
Nicola Morgan, M&S
FOREWORD
The changing dynamics of financial health
Laura Myers
Head of DC and Financial Wellbeing
Welcome to our new report: Employee wellbeing – why good financial wellbeing is a win win.
The past year has been really tough on the nation’s wellbeing and this has a significant impact on employees and consequently employers. In this, our third annual wellbeing report, we surveyed 10,000 UK employees and 500 organisations to enable us to ascertain the synergies and disconnects between these groups. This report dissects the impacts of financial pressures on employees and highlights where employers can best support their workforce.
Our results highlight just how vulnerable many people’s financial health is:
- More than 1 in 5 would class themselves as vulnerable or in crisis with their everyday money management, which is a significant increase on what we saw in 2021.
- More than half said they have struggled to cope with daily life over the last year, again another significant increase on what we saw last year.
With 3 in 4 having little or no emergency savings, any unexpected expenditure can lead them into a borrowing cycle which can easily progress into a downward spiral. There is a clear link between financial vulnerability, mental health concerns and negative behaviours. This in turn can impact workplace absence and productivity, so helping employees will improve the bottom line, which is both a good investment and the supportive thing to do. Many organisations are now recognising the value these strategies can add to both their employees and the business. We hear from the employers and provide their perspective throughout the report.
This interactive report provides insight into lots of different areas including everyday money management, happiness, and biggest worries, right through to communication, the value of workplace benefits, and workplace confidence. By including the employer perspective, we highlight business priorities and quantify the scale of impact from poor employee wellbeing on the organisation.
We are proud to be leaders in financial wellbeing and see this as a natural and important extension of our Defined Contribution services to both Trustees and Employers. Over the last few years we have helped many companies to better understand the needs of their employees, provide financial education and support the development of financial wellbeing strategies which pay for themselves many times over.
We are truly enthusiastic about helping to improve the nation’s financial wellbeing and helping companies design, communicate and implement fantastic wellbeing offerings. We hope you enjoy the report and find the addition of insights and reaction from LCP experts to be of benefit, and we look forward to discussing the findings with you.