Financial worries are costing UK employers £15.2bn every year in employee absence, turnover and lower productivity, an analysis suggests.
For a business of 1,000 employees, this equates to a cost of £450,000 annually, according to Neyber’s DNA of Financial Wellbeing report.
The research suggests that financial worries lead to a £14.2bn cost in turnover, with 3.6 million employees looking for a new job; £516m in lost productivity because nearly three million people struggle to focus at work; and a £478m absence cost from 1.63 million employees taking time off work.
Of the employees who have financial worries, 11% are currently looking for a new job and one in 10 struggle to focus at work. They have also each taken an average of 2.5 days off a year.
The research found 73% of employers now have a financial wellbeing strategy for staff, but just 40% feel theirs is well-developed – up from 64% and 30%, respectively, in 2018.
Just 4% of employers include employee financial wellbeing as a top HR priority.
Monica Kalia, chief strategy officer and co-founder of Neyber, said financial wellbeing is not just about paying off debt, but about ensuring employees feel in control and confident about their future as well.