Financial Wellbeing At Work: Is It Time To Review Your Benefits Package?

Two separate pieces of research have underlined the importance of financial wellbeing at work. 

With many employees saying they are not financially on track and a significant proportion unable to receive sick pay, the role of employer-provided protection should not be overlooked. In fact, employers should be reviewing the employee benefits they offer to ensure they are working in their employees’ best interests.

[Related reading: Financial Wellbeing At Work: Research Reveals Impact Of Pandemic & Top Incentive For Younger Employees]

Almost Half Of Staff Not Financially On Track

More than two-fifths (43%) of employees feel as though they aren’t financially on track to live the lives they would like in the future, new research has found.

According to Aviva’s Evolving in the age of ambiguity report, only 35% of respondents showed signs of practising good saving behaviours. This reality highlights the need for organisations to provide more support to improve financial wellbeing at work.

The Aviva report, the third instalment of a two-year study into the changing workplace, also revealed how 65% of employees show signs of being financially exposed in at least one area and 65% feel they are just getting by. Just under half (45%) said they typically have no money left at the end of the month, while 28% said their finances control their lives.

Furthermore, 44% said their financial situation means they will never have the things they want in life and 57% were concerned that the money they do have or will save will not last.

Sick Pay Too Low For A Third Of Employees To Live

Meanwhile, separate research by the Trades Union Congress (TUC) has revealed how Statutory Sick Pay (SSP) is too low for a significant proportion of staff. 

According to the research, based on an online poll of more than 2,000 workers, around a third of employees have sick pay that is too low to meet basic living costs. Others have no protection at all.

One of the problems is that many employees do not meet the minimum earnings threshold to be eligible for SSP (currently £120 a week). As a result, these individuals cannot take advantage of this state-provided benefit should they find themselves in a position where they need to. This is especially true of seasonal workers.

However, the TUC research found that employees in many industries are at risk. Indeed, 238,000 hospitality workers - equivalent to 16% of the sector’s workforce - 336,000 retail staff (10%) and 73,000 arts and entertainment employees (12%) are ineligible for sick pay.

TUC general secretary Frances O’Grady commented: “Our sick pay system is broken, no one should be left to choose between doing the right thing and putting food on the table."

[Related reading: Why Firms Need To Focus On Employee Financial Wellbeing]

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The impact of the pandemic has triggered swathes of people to consider their health and financial wellbeing. What would those who are ineligible to receive SSP do if they fell ill?

With so many employees financially exposed, the importance of financial wellbeing at work has never been greater. Employers have a moral obligation to provide financial assistance to their employees, even if it is through financial education initiatives.

Given that so many workers are not financially secure, the role of protection products offered through employee benefits packages should never be overlooked.