Marvin OnumonuAhead of Debt Awareness Week, WEALTH at work is urging employers to support employees in addressing money issues and building savings.
Research from WEALTH at work found that 23% of workers borrowed from family and friends, and 18% took on debt in the past year due to financial worries.
More than a quarter worked extra hours, and 13% took on an additional job.
Workers’ top concerns included lacking savings for emergencies, with 42% of respondents highlighting this issue.
Additionally, 37% were worried about struggling to save for the future, 34% feared they couldn’t afford basic living costs, and 29% were concerned about being in debt.
Money worries have impacted workplace performance, with 40% reporting increased stress, 35% experiencing mental exhaustion, 26% facing decreased motivation, and 25% feeling physical exhaustion.
Over a fifth admitted to reduced focus, and 10% reported more sick days.
While 61% of workers felt supported and 40% were comfortable discussing money issues with employers, only 13% would actually seek help.
Those aged 55 and over were least likely to ask for help, with only 5% doing so.
Despite these concerns, 43% of workers believed their financial situation would improve.
The research also showed that workers would prefer to save spare cash, with 42% choosing an ISA, 35% using it to pay off debt, 34% meeting essential bills, and 26% saving for retirement.
Jonathan Watts-Lay, founding director of WEALTH at work, said: “It seems financial worries have become the new normal.
“With almost 14.6 million UK adults not coping financially or finding it difficult to cope, many are looking for ways to help ease the strain on their finances.”
Watts-Lay pointed out that being employed is no longer a guarantee of financial stability.
He explained that 44% of those seeking debt advice were full-time employed, highlighting money worries as not just a personal issue but a workplace one.
Watts-Lay added: “When struggling with money, people are less productive when they are in work, can be tipped into financial vulnerability and are at a greater risk of predatory behaviour from scammers.”
Watts-Lay also emphasised the importance of having a savings safety net and said employers should support employees in tackling money issues and build financial resilience.
He said: “In fact research finds that overall those with savings are generally less anxious about money and have greater life satisfaction.
“This is because savings can help improve financial resilience by removing the need to borrow, as well as preventing hardship by having access to funds to draw on when needed.”
“These findings should prompt employers to consider how employees are being supported to tackle money issues head on and build financial resilience.”
He added: “Many employers overcome this financial wellbeing risk by providing financial education and guidance, as well as providing access to workplace savings such as ISAs.
“This support can make a huge difference by giving workers the opportunity to understand their finances, including ways to save money, learn about budgeting, manage debt, and how to boost savings and prepare for retirement.
“With so few people saying that they would actually seek help from their employer, the onus is on employers to remove the stigma around money worries and offer easily accessible support to all staff.”
He said: “Through financial coaching many people discover important financial lessons that make a considerable difference to their finances and overall wellbeing which in turn can lead to increased productivity and less absenteeism in the workplace. This all makes for a brighter future for all.”
