19% of Employees Feel there Employer Does not do Enough for Financial Wellbeing

Nearly one in five employees (19%) feel their employer is not doing enough to support their financial wellbeing, according to research by the Chartered Institute of Personnel and Development (CIPD).

Its research, which polled more than 2,500 employees, also found that 12% said their pay is not enough to support an acceptable standard of living without having to go into debt to pay for food or bills.

More than one quarter (27%) reported that their pay is not enough to cope with a £300 emergency without having to use their savings, and 47% said their pay is enough to help save for retirement.

More than four-fifths (81%) whose employer has a financial wellbeing policy believe it is important for employers to have one, and are far more likely to say their employer does enough to support their financial wellbeing (60% versus 28%).

Respondents that feel they are offered finanical wellbeing support are also far more likely to say that they receive a good level of benefits such as occupational sick pay, flexible working and gym membership (70%) than respondents with employers that do not offer financial wellbeing support (28%). In addition, the former group is more likely to feel that their employer offers them a generous pension (64% compared to 26%) and that their pay is enough to help them save for retirement (61% versus 41%).

Charles Cotton, senior reward and performance adviser at the CIPD, said: “Our research highlights that employers with a financial wellbeing policy really do make a much-valued difference to the lives of their people. Unfortunately, the cost-of-living crisis is likely to push more and more employees into in-work poverty. This, along with the competition for talent right now, should motivate all organisations to adopt a financial wellbeing policy or improve their existing one.”