One in four UK employees are struggling to concentrate at work due to financial stress.
The research, by rewards and benefits platform Perkbox say that not only is this resulting in a drop in productivity, it also potentially contributing to talent shortages, with employees actively seeking better paid work in order to improve their financial situation.
The research found that overall 32 per cent of workers feel less motivated to work hard because they don’t think that their employer has made adequate effort to help with rising costs,.
The survey also found that these financial concerns are causing tensions between work colleagues. Its survey found a third of workers said they were jealous of colleagues who aren’t concerned about their finances, and nearly a quarter (23 per cent) say money conversations have resulted in feelings of animosity.
These tensions were often driven by generational differences with younger Gen Z employees more likely resent older colleagues, and almost one in three (31 per cent) in this age cohort saying they avoid money conversations as a result.
However despite this many employees (51 per cent) said they would welcome more open conversations about money in the workplace.
Perkbox’s chief people officer Mona Akiki says: “Finances can be a controversial topic in the workplace, and Gen Zs are bearing the brunt of this having spent most of their career to date in the cost-of-living crisis.
“As a quarter of the overall workforce is preoccupied by money stress, employers cannot afford to gloss over the money conversation. Doing so risks productivity, motivation and company culture.
“Instead, employers need to acknowledge the pressures workers are facing and facilitate an open dialogue to understand how money stress is hurting their business.”
She adds: “Businesses should be encouraging employees to be more open about what’s causing them financial stress. This will enable them to acknowledge these ongoing pressures and offer the right support.”
The research also looked at what other means of financial support were valued by employees – alongside a salary rise. It found around a third of workers wanted personalised rewards and benefits packages (35 per cent), discount schemes to help save on shopping bills (34 per cent) and flexible rewards that can reduce the cost of leisure activities (32 per cent).
Akiki adds: “Businesses should look to offer a rewards and benefits package which can be tailored to workers’ diverse needs. Whether it’s discounts on weekly food shops or funding the small things like a trip to the cinema or a takeaway, these tools will go a long way to ensuring everyone in the workforce feels seen, supported and appreciated.”
