Financial concerns are costing UK employers £10.3B annually in lost workdays, up from £ 6.2B two years ago.
According to a study conducted by The Centre for Economics and Business (CEBR) on behalf of Aegon UK, 13 per cent of full- and part-time employees in the private sector miss work on a yearly average of 4.7 days because of financial concerns.
This corresponds to 3.2 million employees taking time off, which means 16 million workdays are lost. Employees between the ages of 25 and 34 had the greatest absenteeism rates (18.6 per cent).
Furthermore, a major problem is presenteeism, with nearly 25 per cent of respondents citing financial concerns as a reason for lower productivity over the previous two years. This is especially true for individuals between the ages of 16 and 44 (28 per cent).
Aegon UK director, client & partnership development Nick Roy says: “Our research uncovers the scale of the impact that financial worries of workers are having on UK businesses. A staggering 16 million workdays lost due in part to soaring numbers of staff experiencing financial concerns should set alarm bells ringing.
“The combination of absenteeism and presenteeism stemming from financial instability comes in at a massive £10.3B annual cost on private-sector businesses annually.
“Our wellbeing focus includes extensive research with over 10,000 UK residents – is now in its third year. We also deliver the highly successful Pensions Geeks TV quarterly, which are financial education webinars for members. For employers and advisers, we host a series of live financial wellbeing webinars each year.
“Supporting wellbeing and financial education is central to our proposition for members and employees. We’re committed to developing the mindset differentiator – helping people understand the balance between money and mindset which enables for better outcomes.
“We’re also committed to equipping employers with innovative tools to help their staff feel more in control of their money, including easy-to-use financial literacy resources, debt management guidance and information on how to reach savings goals.
“We recently won the award for Financial Wellbeing Champion of the Year 2023, and we’re committed to continuing to improve the support we offer the employers we work with.
“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.”
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