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Research shows nearly two in three employees are ‘just getting by financially’
04 April 2022 Health and Wellbeing
New research shows that 65% of employees find their saving habits leave them feeling financially exposed, while more than one in four (28%) feel their finances control their lives.
The survey, conducted by Aviva, reveals that two in five employees (43%) do not feel financially on track for 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 staff.
The call for action comes as new findings from the third instalment of a two-year study into the evolving workplace reveal that only 35% of employees are showing signs of practising good saving behaviours.
Research from Aviva’s report, Evolving in the Age of Ambiguity, highlights the positive influence of good financial wellbeing on individuals and businesses. It shows the associated benefits range from better mental and physical health outcomes to improved feelings of job satisfaction, security and stability.
Yet the findings also reveal 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.
The results highlight the need for businesses to better support financial education in the workplace, at a time when rising inflation² is likely to mean money matters have a bigger impact on people’s sense of wellbeing and decision-making.
Nearly two in three feel financially exposed
The study highlights five key indicators of good saving behaviours in people’s perceptions of their everyday life.
However, it warns of significant challenges ahead as nearly two in three (65%) employees are showing signs of being financially exposed in at least one area.
Most seriously, 65% feel they are ‘just getting by financially’, with nearly half (45%) typically finding they have no money left over at the end of the month.
More than one in four (28%) employees surveyed feel their finances control their lives.
Looking ahead to the future, nearly half of the working population (44%) feel their money situation means they will never have the things they want in life.
Even more (57%) are concerned that the money they have or will save won’t last.
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.
“Our research shows people’s underlying sense of security and wellbeing – physical and mental, at work and at home – can be fundamentally impacted by the act of saving, with potential benefits in almost every aspect of day-to-day life.
“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.”