Financial pressure is having a measurable impact on employee wellbeing and organisational performance across the UK, according to new research which shows the scale of money-related anxiety and its effect on attendance productivity and morale at work.
The research, commissioned by workplace finance provider, found that nearly two thirds of UK employees at 64% say they worry about their rent or mortgage payments on a monthly basis. Two in five at 17% report worrying about housing costs every single day.
Among workers under 35 the strain is more acute, with 20% worrying daily about basic living costs.
Financial Stress Driving Absence and Presenteeism
In the past year 83% of UK workers say they have taken at least one day off work due to stress anxiety or illness linked to personal finance concerns. A total of 61% report taking four or more days off work as a result of financial stress while 12% say they have taken between 11 and 20 days off.
Even when present at work the impact persists. Three in five workers at 59% say financial stress affects their energy and enthusiasm for their job. Employees also spend an average of 2.24 hours each month dealing with personal finances during working hours which further affects productivity.
Despite this scale financial strain often remains hidden. While 39% admit that money worries reduce their productivity 43% say they would only disclose finance-related stress to their employer if it forced them to call in sick. This reluctance to speak openly suggests that many organisations may underestimate the day-to-day toll on mental health and performance.
“The UK is a nation under severe financial stress, with households facing increasing pressure to make their money work harder. But the impact of this doesn’t just live at home, says Peter Briffett, co-founder and CEO of Stream.
“It’s astonishing to see that money worries are causing people to take time off work or spend millions of hours a month worrying about their personal finances while at work. The impact of an absent workforce on productivity is impossible to ignore and is now having national economic ramifications.”
Workplace Finance Tools Linked to Improved Wellbeing and Retention
The research also explores what employees believe would help. Nearly half at 49% want better budgeting tools while 38% value more predictable income and 37% want the option to save directly from their pay. These preferences rank above traditional financial education at 26% and speaking to a financial adviser at 19%.
When workers feel more in control of their finances the reported benefits extend beyond money management. Over a third at 34% say they are more focused at work while 37% report feeling less stressed and 37% say their mental health improves. In addition 38% say improved financial control supports better physical health decisions.
Retention is also affected. Almost half of workers at 47% would consider leaving their current job for one offering better financial benefits. Meanwhile 44% say having a single real-time view of their finances would make them feel more in control.
Briffett added that supporting employees’ financial wellbeing directly affects productivity, engagement and retention in UK workplaces.
“When people feel more positive about their money, they’re more focused, more engaged and able to perform better at work. Employers have a critical role to play in reducing financial stress, by launching workplace finance tools to help track earnings, save and plan for their futures.”