25th February 2016
I’ve just read a couple of great articles related to a new Social Market Foundation (SMF) research study ‘Working well: How employers can improve the wellbeing and productivity of their workforce’ which every company should read, highlighting the hidden costs that can hit your bottom line payroll cost.
Both reports highlight employee money worries and the effect that can have at work – strained personal and professional relationships, morale and job satisfaction issues, health issues and things such as absenteeism and presenteeism. With one in eight workers saying money worries hinder concentration and 40% saying money worries have made them feel stressed there is an increasingly clear impact on the work place.
Your first thought may be that giving people wage rises will solve things, and this is where the 4% payroll cost figure comes in. Interestingly, however, it’s not necessarily about paying your employees more money. The solution according to both articles lies in helping employees to understand healthy financial behaviours and build financial resilience.
Of course ensuring that your employee payroll goes out on time and is for the correct amount is vital. Employees under financial stress at home will understandably be very negative to any company that fails in this important duty.