The current generations of employees in the UK is motivated to work by a diverse array of factors, and it’s increasingly important that businesses recognise and reflect these through their core values.
This can help to create a more engaged and motivated workforce, with reports suggesting increases of up to 16% in profitability and 18% greater productive.
Interestingly, one of the most important workplace values for employees is fair pay (55%), as financial well-being becomes an increasingly important factor for individuals in the modern workplace. But why exactly is this the case?
Financial Well-being and the Current Climate
Whilst financial well being has always been a key concern for employees, it has arguably become even more pressing in the current economic climate.
Even though unemployment in the UK has sunk to an incredibly low 3.8%, the last decade has seen real wage growth stagnate as the cost of living has soared. So, although regular pay excluding bonuses rose by a healthy 3.1% in the three months ending August 2018, this was the first hike of this level in more than a decade.
There’s also no guarantee that real wages will continue to grow against the backdrop of Brexit, which could also send the value of the pound reeling, increase inflation and trigger a significant rise in the cost of groceries and household goods.
Given this and the issue being posed by private pension scheme deficits, it’s easy to understand why employees are concerned about their short and long-term financial security.
The Impact of Financial Well-being on Employee Performance
Over time, these factors can cause significant financial stress for employees, dramatically undermining their productivity and damaging their financial situation in the process.
According to research carried out by Barclays, an estimated one in 10 employees is silently struggling financially, but by making this a key focus in the workplace employers can provide targeted support to their workforce.
This support can take two distinct forms, the first being the provision of salary-linked employee benefits. This can help to create an employee benefits’ program that’s entirely fit for purpose, and one that also provides practical help to support their financial wellbeing.
The second element is focused around educational support, which is designed to help people become more financially independent and less reliant on consumer debt products such as loans, credit cards and payday loans.
The majority of these lessons will focus on teaching practical budgeting skills, which enable employees to reduce their living expenses and enjoy a more frugal lifestyle.
In turn this allows workers to become more financially resilient over time, which can in turn boost productivity levels and with less distraction, improve their ability to focus on daily workplace tasks.