Money worries take their toll on Scots’ work performance

Employers in Scotland are being urged to better support the financial wellbeing of their workers as new CIPD research reveals that over a quarter of Scottish workers (27%) said money worries have negatively impacted their ability to do their job.

The survey of over 1,000 Scottish employees* – from the CIPD, the professional body for HR and people development – revealed a third (33%) of Scots earning less than £20,000 a year said financial worries had hit their work performance, and 15% of those earning £60,000 or more said the same. 

The research also revealed the ways money worries affected work performance, with workers citing lost sleep and poor concentration, along with difficulty making decisions at work, as just some of the ways money worries impact them at work.

Looking ahead, three in ten (30%) employees in Scotland reported that the state of their finances meant they would not be able to manage an unexpected £300 bill without having to use any savings. This rose to 53% among those earning less than £20,000 a year.

This data comes as the cost of living continues to rise and many organisations are also bearing higher employment costs, further to the Chancellor’s Budget last year, and the effects of growing global uncertainty.

Marek Zemanik, senior public policy advisor for the UK nations at the CIPD said: 

“Rising employment costs are a big concern for organisations right now, but what's often overlooked is the impact of poor financial wellbeing on employee wellbeing and productivity. Our research really puts that into perspective.

“Employers that commit to supporting the financial wellbeing of their workers will benefit from a much more engaged and productive workforce, which is vital in the current climate. Organisations are more likely to stand out in the labour market as a socially responsible employer too, which is becoming increasingly important as people put more trust in companies that align with their values.”

What can employers do to help? 

Given the negative impact of financial stress on individual wellbeing and work performance, the CIPD recommends organisations take proactive steps to support the financial wellbeing of their workforce.

This includes creating a financial wellbeing strategy that supports the organisation’s overall health and wellbeing strategy.

The financial wellbeing strategy should clearly demonstrate and outline support available to workers, such as:

• Staff benefits that suit the needs of the workforce, with employees able to choose which best suit their circumstances and help them financially.
• Fair pay - employers can ensure they do this by conducting equal pay reviews and checking the reasons for any pay gaps.
• Useful sources of financial information and guidance regularly communicated to workers, such as the Money Advice Service.
• Support measures such as hardship loans, access to debt counselling, or earned wage access. This can support employees that find themselves in financial difficulty.

Employers can also help employees save for a financial emergency through a payroll saving scheme, where workers set aside a small amount of money each month from their pay cheque. This allows employees to build up a financial buffer to help them deal with an unexpected expense.

CIPD research** across the UK found that 59% of workers believe it’s important that their employer has a policy to support and improve their financial wellbeing. When it comes to looking for their next job, 65% said it is important that a future employer does this, highlighting the impact of financial wellbeing on employee retention and attraction.