A staggering 50% of British households struggle with unexpected bills, with a worrying 70% categorised as "chronically broke". In the workplace, nearly half the UK population are distracted by money concerns, a clear indication of the prevalence of financial stress. This negatively affects focus and productivity, with financially strained employees being 20% less productive. The cost to UK businesses? A hefty £1.56bn annually due to absenteeism and presenteeism linked to poor financial health.
The retail sector is unique, with certain features such as shift-based work creating a challenge for hourly workers when budgeting. Their financial stress is only aggravated by fluctuating earnings and irregular pay cycles.
So, how can we enhance financial wellbeing in retail? Here's a roadmap:
- Transparent Information: Clearly communicate employees' earnings to them. You can usually find this as part of your wider financial benefits offering/toolkit.
- Savings Nudges: Encourage your workforce to save regularly as part of their financial planning.
- Unlock Pay Cycles: Allow employees to access their earned pay at any time, providing them with financial flexibility.
- Personalised Support: This, including financial coaching and peer-to-peer accountability, is more potent than generic financial education programs. Remember, the diverse needs of retail employees at different life stages must be addressed.
Strong interpersonal relationships are the backbone of the retail sector. Financial stress can pose a threat to these relationships, critically influencing operational efficiency and customer satisfaction.
Incorporating financial wellbeing into broader wellbeing strategies is a realistic way for retailers to support their employees. Collaboration with organisations like Wagestream and the Retail Trust provides valuable resources and expertise in bolstering financial health.
Retailers, by concentrating on behavioural change, transparency, savings tools, and personalised support, can empower employees to build financial resilience. The end result? Enhanced overall productivity, and loyal, engaged teams.
Read the full report here.
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