Employee financial stress is costing employers over £10 billion a year, a new report from Aegon has revealed.
According to the report, the number of both full-time and part-time private sector employees missing work due to financial concerns has risen to 12%, up from 10% previously. On average, employees lost 4.7 workdays per year, equating to 16 million workdays lost, as the cost-of-living crisis continues to take its toll.
The number of working days lost to financial worries is estimated to cost UK employers £10.3 billion annually, up from £6.2 billion two years ago.
The findings revealed that younger generations were most likely to suffer financial stress, with nearly a fifth (18.6%) of workers aged between 25 and 34 reporting absenteeism, followed by 14.7% of those aged 16 to 24 and 14.4% of those aged 35 to 44. In contrast, only 5.8% of those aged 45 or older reported taking leave due to financial worries.
Presenteeism – where employees attend work but experience reduced productivity – is a further challenge for businesses. While there are a number of issues affecting employee output, from family problems to health issues and job security, financial worries pose the biggest concern. Nearly one in three (28%) of those aged 16 to 44 experience such issues, compared to 15% of over-45s.
Nick Roy, director, client and partnership development at Aegon UK, said: “The combination of absenteeism and presenteeism stemming from financial instability comes in at a massive £10.3 billion annual cost on private-sector businesses annually.
“The report shows that absenteeism and presenteeism are more prevalent in the younger age groups. This perhaps points to a financial resilience of workers already in their ‘Second 50’ which is encouraging. But they too are not immune to financial wellbeing challenges as they reach uncharted territory in their journey towards retirement.
“A talented and committed workforce is a business’s greatest asset and their wellbeing is essential for long-term success. As the reports points out, fully understanding employees’ financial needs is essential, not only for businesses aiming to attract and retain top talent but also for fostering a meaningful workplace for their people.”
