Should personal-finance issues be brought into the workplace?

Staff retention and wellbeing is well documented as being one of the main pain points for UK employers, but can a deeper understanding of personnel help organisations to enhance employee satisfaction and promote longevity in a role, or is a stiff upper lip approach to such personal matters the order of the day.

New insights from free budgeting platform Income and Expenditure Hub (IE Hub) confirms that in fact, employees do want their employers to know more about them and their financial health. And that while the subject may have been a no-go zone once upon a time, now it seems, that more talk may lead to greater action.

Recent data from IE Hub shows that the working poor – those who are employed – are now finding themselves grappling with financial hardships more than ever. The figures reveal that almost a third (28%) of IE Hub’s customers who need financial assistance are employed full time, while an additional 17% hold part-time positions. Surprisingly, only 17% of those seeking help are unemployed, challenging typical assumptions about financial stability and employment status.

Delving deeper into the debt landscape, IE Hub further reveals among those surveyed, individuals in full-time employment carry an average total debt of £5,182, surpassing even the debt levels of the unemployed, who hold an average debt of £3,794. Part-time employees fall in between, with a mean debt amount of £3,332. This data highlights that, contrary to expectations, full-time employment does not necessarily equate to improved financial standing.

Dylan Jones, CEO of IE Hub says: “It’s clear, looking at the data from IE Hub, that those in employment are now faced with the reality that rising food, transport, and utility costs do not cover the necessities anymore and are carrying the burden of spiralling debt into work.

“From feedback, we know that employers who focus on having financially healthy employees gain improved productivity and a happier and more open workforce.

“Recognising the impact of financial stress on productivity, engagement, and overall well-being in the workplace is an important topic and by proactively yet sensitively addressing these challenges and offering effective financial solution, organisations can create a more supportive and thriving work environment that employees also endorse. The IE HUb platform is a great tool for employees to help manage their financial planning in a less stressful way.

“No longer should personal debt be a taboo subject. More talk can lead to better and more positive action.”