Income and work

A quarter of employees have financial problems that are affecting their performance at work.

A CIPD survey of over 1,800 UK employees found that 31% of those aged 18-24 are facing financial concerns that they feel are negatively impacting their ability to do their job effectively.

20% of those earning £45,000 – £59,999 say that financial problems have affected their ability to work. This is more likely among women (28%) compared to men (23%).

According to those surveyed, the most important aspects of financial well-being are:

  • earning a significant wage (75%)
  • being able to save more for the future (55%)
  • being rewarded for hard work in a fair and consistent way (54%)
  • being able to pay off debts (45%).

Charles Cotton, reward and performance adviser at the CIPD, said:

“With 1 in 4 admitting it negatively impacts their work, it’s clear that organisations should be focussing on financial well-being as part of their workplace agenda.”

The importance of the working environment

According to the CIPD, 41% of workers want to be rewarded and 26% want to be able to save through a pension to improve their financial well-being.

Employee recognition can demonstrate value to people and your business. Non-cash benefits such as social functions, company cars and in-house facilities can also boost morale and productivity.

Some benefits may require you to pay PAYE and national insurance contributions on them.

We can help you with your reward strategy.