Financial wellbeing set to be employees’ biggest challenge in 2024

by | Dec 23, 2023

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The biggest threat to business productivity, sustainability and financial stability in 2024 will be the financial wellbeing of workers, the CEO of employment solutions specialists HIVE360 has warned.

“Recent research* confirms the financial fragility of the country’s workforce, revealing that half of workers are living pay check to pay check, suggesting there is little or no money left after monthly bills are covered,” says David McCormack.

“So many UK businesses are already struggling with the impact of the cost of living crisis, economic fallout from Russia’s invasion of Ukraine, high cost of borrowing due to sustained rises in interest rates, and the aftermath of the pandemic. Whilst everyone recognises this impact extends to company’s workforces too, with margins so tight, and operational costs tough to cover, giving staff pay rises or one-off payments is almost impossible, no matter how much bosses wish to do so,” he says.

 
 

“The cost-of-living crisis remains the biggest concern for 51% of UK employers who are worried about the negative impact it is having on organisational performance. Almost half (48%) say it poses the single biggest threat to organisational performance.

“As we look to 2024, the UK is bracing itself for another period of austerity, as the cost of living crisis continues to impact the vast majority of the population, with food and fuel prices at an all-time high. The resulting ‘financial stress’ has a significant impact on employees’ overall wellbeing, productivity and concentration levels at work. I believe that rewards and benefits schemes that go beyond pay are now a more critical part of the mix than ever before, and that they will only increase in importance and value next year.”

HIVE360’s Customer Experience Manager Claire Lidgbird, explains: “Providing savings on the cost of essential and non-essential expenses, can ease employees’ worries about money and how or if they can make ends meet. Employee discount schemes and targeted support to pay for everyday costs such as energy bills and groceries have already increased in popularity as a means to help staff with inflated costs, outside of a pay increase. We strongly believe that offering employee discount benefits empowers staff to make smarter financial choices and to stretch their hard-earned money further, and that savings on everyday expenses such as groceries, entertainment, and transportation can help alleviate financial stress and burdens.

 
 

“Our own research reveals that nearly half (46%) of workers across the UK are seeking financial wellbeing support and advice – based on analysis of user data for the Wellbeing Centre of our rewards and benefits mobile app Engage.Other data suggests that more and more companies are turning to employee benefits schemes to support staff wellbeing – almost one in six have put a plan in place to support employee wellbeing in 2024. Not only is this an encouraging move for work:life balance and employee assistance and support programmes per se, but it is also a sensible business strategy – engaged employees are 21 percent more productive than their disengaged counterparts. 

“When employees feel valued they are more likely to feel motivated at work, show higher levels of performance and are less likely to seek alternative employment. Furthermore, low employee engagement rates not only have a negative impact on productivity, but also rates of absenteeism and retention – recent data suggests between 85 and 87 percent of engaged employees are less likely to leave their organisations,” she says.

HIVE360 is an employment solution expert, that is focused on adding value to its client’s businesses, and looking after their people and workers. As a specialist, expert outsourced employment services and administration partner, HIVE360 provides effective outsourced employment administration and PAYE HMRC compliant payroll, and employee engagement and employee benefits solutions. The company works with owner-managed, privately-owned and medium-sized (150-plus employees/workers) businesses, as well as recruitment businesses and agencies, their workforce and candidates. By tackling the challenge to attract, engage and retain the best talent, HIVE360 strives to help its clients become employers and recruiters of choice by giving them a strong employment offering in the market.

 
 

Its customisable, branded, unique Engage Employee Wellbeing and Benefits app, is included as standard and at no extra charge for all clients and their workforce, and uses pioneering technology-based solutions that create a ‘bridge’ between an employer and its workforce. Engage is supported by HIVE360’s dedicated engagement team, is available in 120 languages, and includes My Training, My Health, My Money, My Discounts, and My Work features. More information: https://www.hive360.com/payroll-pension-perks/ 

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