A survey carried out among 10,000 employees, shows that 50 per cent said they regularly had to borrow money to pay household bills or deal with day-to-day expenditure. This figure jumps to 70 per cent among under-34s. Inability to get by has led to spiralling debts amongst the UK’s workforce. Unsecured household debt now stands at £13,151.37 on average, compared to £10,718.20 in 2016.
As a result, one in 10 employees said they feel their finances are out of control, and a further 18 per cent were in control, but only just hanging in there.
For British business, the impact of money worries can be significant. Neyber has calculated that the lost productivity and increased absence and employee turnover associated with financial stress costs UK companies in the region of £120.7 billion every year.
6 in 10 employees said their behaviour changes when they are under financial pressure. This increased to more than seven in 10 for those aged under 34. They said that money worries change their internal mindset and attitudes, and their ability to maintain focus at work.
45 per cent said that money worries affect their job performance and 40 per cent said they affect their relationships at work.
Employers are aware of financial worries causing changes in their employees. Sixty eight per cent agreed that this affects individuals’ behaviour, 69 per cent their performance and 67 per cent relationships at work.
Heidi Allan, head of employee wellbeing at Neyber, said: “Employees need help with spotting the warning signs before their finances start to feel out of control, and prevent their situation getting worse and racking up personal debt.