Businesses are being urged to act as a new report highlights that 78% of UK employees remain anxious about the cost-of-living crisis – but nearly half would not confide in their employer about their struggles.
The Britain At Work report, published by employee benefits firm Health Shield, shows that financial concerns persist across all wage brackets, despite a significant drop in inflation from its peak of 11.1% in 2022 to 3% this year.
While the percentage of employees experiencing money-related stress has declined from last year’s 89%, nearly four in five workers are still worried. And 45% say they feel even more anxious about their finances than they did a year ago.
Financial Worries Impacting Workplace Performance
The findings reveal the toll financial pressures are taking on workplace productivity:
- 54% say financial worries have affected their ability to perform their job, up from 48% last year.
- 16% have skipped work due to financial concerns.
- 33% worry about money daily, with 68% experiencing financial stress at least weekly.
- 54% of those earning under £25,000 worry about money every day.
- 44% fear losing their job due to financial instability.
Employees Reluctant to Speak Up
An additional challenge for businesses is the reluctance of employees to share their struggles. According to the report:
- Less than half (46%) would tell their employer if they were struggling financially, with the figure dropping to just 41% for women.
- Only 49% believe their employer genuinely cares about how the rising cost of living is affecting them.
Paul Shires, director at Health Shield, described the findings as a “wake-up call” for employers, because “employees across the country continue to need help and support, despite a perception that the cost-of-living crisis is somehow over”.
He said the “reality is that many people are still suffering, still feeling anxious and finding that financial worries are impacting their performance at work” and therefore it was “important that businesses and HR teams are proactive, because our results also show that many employees are reluctant to tell management about their problems”.
Long-Term Support Needed
With the cost of household bills, including water, energy, council tax and car tax, all set to rise in April, financial anxiety is unlikely to ease soon.
Shires noted that while many businesses introduced emergency support packages during the height of the crisis, employees may require longer-term assistance.
HR expert Perry Timms, founder and chief energy officer of workplace consultancy firm PTHR, said it was important that there was ongoing employer engagement.
“This report should be a stimulus for all organisations to act,” he said. “It shows that we cannot ignore the detrimental impacts of financial worries on our people.
“The statistics highlight that employees remain frightened (at worst) or distracted (at best) because of the cost of living. This will inevitably impact how they show up at work and strive to perform.
Timms added the company bosses “should be listening, engaging and considering how to provide hope and support”.