New research from Aviva’s 2024 Working Lives Report found that many employees are reluctant to openly discuss their financial concerns at work.
According to the report, 50 percent of employees surveyed have not spoken to their employer or manager about their financial wellbeing. This results in a disconnect where nearly three-quarters of employees (73%) report increased financial anxiety due to the ongoing cost-of-living crisis, yet only 56 percent of employers believe their workforce is worried about financial wellbeing.
While there has been a shift towards supportive workplace initiatives, with over three-quarters of employers (76%) now actively encouraging employees to discuss financial concerns with their managers – reluctance to open up about financial worries persists among employees, especially older workers who tend to have fewer coping mechanisms for financial anxiety.
While younger employees are more likely to engage in conversations about their financial wellbeing, with 77 percent of those aged 16-24 reporting having done so, only 34 percent of employees aged 45-54 have spoken to their employer about their financial concerns.
Financial Avoidance
Financial avoidance – a behaviour where individuals shy away from managing finances, such as avoiding bill payments or neglecting financial statements – affects 20 percent of employees. This often leads to escalating financial issues and increased stress, as individuals avoid necessary actions that could stabilise their financial situations.
While younger employees are more proactive in seeking support for financial concerns, with a significant portion of 16-24-year-olds engaging in discussions about their financial wellbeing with their employer or line manager, financial wellbeing discussions decrease with age, as fewer employees over 45 report having these conversations.
Overall, nearly half of employees (49%) cope with financial anxiety by talking to friends or family; only 6 percent discuss finances with colleagues, managers, or financial advisers, while 14 percent report lacking any coping mechanisms.
Meeting Individual Needs
Emma Douglas, Director of Workplace Savings & Retirement at Aviva, said, “Financial wellbeing is a critical part of a person’s welfare, and it might be a surprise to some that it is more about a person’s attitude to money and how they feel, rather than a number in their bank balance or pension fund.
“These attitudes can be based on a range of factors, including a person’s experience of handling money, their background, and their level of personal finance knowledge.
“If someone is anxious or stressed about money it’s likely to have a detrimental impact on their mental and physical health too. Employers are increasingly looking to offer information and a range of support services and tools designed to help improve the financial wellbeing of their people. But individuals’ needs vary hugely, so it’s important that services can be tailored to support these diverse needs: from help with bills and budgeting to retirement planning.
“People can take small steps to manage their financial wellbeing which might include tracking down lost pensions, making a plan for retirement, or checking whether their employer provides an Employee Assistance Programme (EAP).”