Almost all (98%) employers believe that their employees’ financial wellness has a direct impact on their business performance – especially concerning employee productivity (67%) and engagement (62%).
This is according to the Future of Pay research study by ADP, a leading global technology company providing human capital management (HCM) solutions. ADP surveyed 4,000 employees and 2,900 businesses to explore workers’ perceptions and attitudes towards traditional and emerging pay methods to address some of the biggest human capital management concerns.
The Future of Pay also revealed that 79% of employees expect their employers to help them with their financial wellbeing, while 90% of millennials are willing to share at least some personal information such as spending habits, bank balances, and family and healthcare needs with their payroll provider to track finances in order to receive advice.
Speaking about the Future of Pay research, Jeff Phipps, Managing Director at ADP, said: “With the latest Office for National Statistics (ONS) report showing that labour productivity in the UK has declined between January to March 2019 for the third consecutive quarter, employee efficiency is paramount to improve this economic climate. Our research shows that employers need to explore all avenues to improve employee efficiency including alleviating their concerns about personal finances.
“Further research from Money and Mental Health Policy Institute supports this finding as 50% of employees who are struggling financially are less productive, while 55% of them admit to working less carefully as a result of emotional problems that come from their financial stress.
“While many organisations implement several workplace initiatives to boost productivity, employees’ expectations for financial wellness offerings at work are growing. Therefore, companies need to review the role they play in their employees’ financial wellbeing journey, which can take many forms. Businesses can support their employees by becoming financial wellbeing advocates and facilitators. By hosting money management workshops, employers can fight against workplace absenteeism and attract and retain the best talent.”
About the Future of Pay Global Report: The ADP Research Institute Future of Pay survey was conducted with nearly 7000 employers and employees from companies with 50+ employees across 13 countries worldwide. The research assessed how they view pay, what's important, how payment methods are changing and what the future might look like.