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Nearly two in three employees are ‘just getting by financially’

14 December 2021

Story by
Alex Crowther, Senior Reporter, The HR World

Sad,Thoughtful,Frustrated,Black,Woman,With,Piggy,Bank

According to new research, 65% of employees find their saving habits leave them financially exposed in at least one area, while more than one in four (28%) feel their finances control their lives.

More than two in five employees (43%) do not feel financially on track for the future and nearly half (45%) typically find they have no money left over at the end of the month.

The survey, by Aviva, shows that more than two in five employees (43%) do not feel financially on track to live the kind of life they want in the future.

Aviva has called on businesses to focus on support for employees’ financial wellbeing or face increasing pressure to attract and retain talent, as a record 1.17m jobs stand open and more than four in five industry sectors report unprecedented demand for staff¹.

The results highlight the need for businesses to better support financial education in the workplace, at a time when rising inflation is likely to mean money matters have a bigger impact on people’s sense of wellbeing and decision-making.

Laura Stewart-Smith, Head of Workplace Savings and Retirement at Aviva, said:

The pay-off from practising good saving behaviours extends well beyond a number on a bank statement and being able to afford what you want now and in the future.

“With many people facing financial challenges, these findings present a new opportunity for employers to build deeper, lasting relationships with their employees by taking steps to support their financial education and wellbeing.

“Saving behaviours are not only good for financial preparedness, they can also empower people in their careers, which has a knock-on effect on their sense of job satisfaction and optimism for the future.

“The fact so many people feel financially exposed suggests there is a mountain to climb, but as people start to plan career moves for 2022, now is the time for businesses to act to support employees’ wellbeing and engagement to boost retention.

The majority of people recognise their employer is not responsible for keeping staff financially on track, but businesses can play a key role in achieving this goal and reap the collective rewards.”

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