The cost-of-living crisis and soaring inflation can significantly impact an individual’s financial stability and lead to increased stress levels. Recent research from Speakers’ Corner however reveals business leaders aren’t recognising the impact of the current economic climate on their employees’ stress levels. It isn’t intentional – they’re misinformed about the causes of stress among their employees, believing they directly align with their own.
According to the business owners surveyed, they believe the top five leading causes of stress for employees are:
- Heavy workload
- Long hours
- Tight deadlines
- Job security
- Changes to job role
When in fact, the top five leading causes of stresses for employees according to research by Unum are:
- Managing financially throughout the cost-of-living crisis
- Work-life balance
- Dealing with debt/mortgage interest rate rises
- Mental health concerns
- General health concerns
Business leaders are clearly interested in supporting their employees, with 92% of respondents currently providing support for their employees’ wellbeing. The problem is they are providing solutions for the wrong challenges. With 60% of employees finding that managing financially with the cost-of-living crisis is one of their biggest concerns, there is a clear need for financial wellbeing support.
What’s the impact?
Employers who don’t acknowledge the impact the cost-of-living crisis is having on employees, are likely to struggle with employee retention. The cost-of-living crisis is expected to spark the ‘Great Resignation’ of 2023, with nearly a fifth of the UK workforce (19%) planning to look for new jobs this year with higher salaries or better employee benefits in light of the rising cost-of-living, stagnant wages and increasing financial insecurity (Unum, 2023).
Our CEO of employee services recently highlighted the importance of understanding the financial pressures employees are facing and how as business leaders you can support them to ease that pressure through the ongoing cost of living crisis.
“It’s actually about creating a framework whereby people know that you understand what’s going on and the impact it’s having on people in the wider society and your employees and the impact it has on them. They need to feel that you understand”.
Though managers, especially those in senior positions, may not feel the direct effects of the cost of living and inflation in the same way as their employees they need to be aware of the impact on their employees and take proactive steps to support them. By doing so, they can improve employee morale, productivity, and overall job satisfaction, which can positively impact the business as a whole.
Want to know more?
Read more about the benefits of financial wellbeing services or download our free guide to retaining and attracting staff.
Other useful resources:
- Cost of living crisis – is there a way out for you and your employees?
- Understanding the 5 pillars of employee wellbeing in the workplace
- Chancellor’s Autumn Statement 2022: How does it impact pay and pensions?
- Help your employees understand pensions better [Your Free FAQ Guide]
- Employee engagement – the key to retaining staff
- 5 Point Plan to Drive employee engagement
