Analysis from the Centre for Economics and Business Research consultancy reveals that UK households have £43bn less cash available for essential spending between April and June. While the primary concern is on health during the COVID crisis, financial wellbeing is crucial as it contributes to employees' overall wellbeing. According to Jeff Phipps, Managing Director at ADP, this is the time for businesses to support employees’ financial wellbeing as many are concerned about their finances.
According to The Future of Pay research by ADP, a leading global technology company, most employers (98%) admit that employee financial wellbeing impacts their business, particularly when it comes to productivity (67%) and engagement (62%). ADP believes that companies can no longer afford to ignore their employees’ financial concerns given that 79% of employees say they expect their employers to help them with their financial wellbeing. The research study also shows that 90% of millennials say that they are willing to share at least some personal information, such as spending habits, bank balances, and healthcare needs, with their payroll provider to track finances in order to receive financial guidance.
Speaking about the impact of COVID-19 crisis on employees’ financial wellness, Phipps commented: “Unfortunately the effect of COVID-19 has spread far beyond expected, impacting people’s physical, financial and mental wellbeing.
Sadly, a large proportion of people in the UK were already living paycheck to paycheck before the crisis. Due to the lockdown, the situation has been heightened as many have less cash available for their essential spending, taking a further toll on their health and work.
Employers have an opportunity to provide support and to ensure their employees have access to high quality financial advice. It is important that employers tread carefully and demonstrate sensitivity and respect for personal circumstances. Done well, financial well-being programs can be a great way to help employees save money and reduce the “money worries”. Employers are not able to solve every personal problem, but where we can, something that helps our employees go to work with one less worry is an opportunity to show we value and care about them.”
The Future of Pay research surveyed 4,000 employees and 2,900 businesses to explore workers’ perceptions and attitudes towards traditional and emerging pay methods to address some of the biggest human capital management concerns.