The importance of financial well being: ‘Reducing employee financial stress should be the number one concern for any company.’
Creditspring is pleased to announce that we have been accredited as a Living Wage employer. Our Living Wage commitment will see everyone employed by Creditspring, including 3rd party contracted staff, receive a minimum hourly wage of £10 per hour. This is higher than the statutory minimum wage in the UK of £8.21.
We think the statutory minimum wage is flat out too low to live on in a place like London. We keep reading about hard working families not being able to make ends meet as living costs rise faster than wages. And there are just too many stories about working people having to turn to high-cost credit to pay for basic necessities. In one of the richest cities in the world, this make for a pretty depressing state of affairs.
However, for us, joining the Living Wage is not about charity or to make us feel better. We did this as a business decision.
We believe that our single most important investment and asset is our employees. Without happy and productive employees, we are nothing. We realise that financial stress and their financial wellbeing are the most important factors affecting employee productivity. And yet, there is not that much information about it and we don’t seem to hear many people talking about it. A recent article in the Guardian talks about all the things employers are doing to make their employees happy. Yet there is not a single mention of financial health and wellbeing!
According to Neyber, one of the faster growing fintech startups in the UK, financial worries are employees’ biggest concern, ranking even more important than health and work life balance. Four in ten workers have said money issues make them stressed. One in eight workers say money worries have distracted them at work in the last year. According to findings of a study reported by the Social Market Foundation, this distraction is estimated to cost the UK economy £15bn per year. Additionally, analysis by Barclays estimates that financial stress adds 4% to payroll costs in the UK. This may seem small, but its huge – roughly 30% of what employers across the UK pay in terms of National Insurance contributions.
A 2016 report from Neyber estimated that 17.5m working days are lost per year as a result of financial stress. In that same study, they mention that almost two-thirds of employees had to borrow to meet basic financial needs, with 8% turning to a payday loan! (We don’t want any of our employees going near these!)
The good thing is that employers are finally starting to notice. Neyber’s fast growth is a testament to this, as are the findings from the Living Wage Foundation. The Foundation found that more than 80% of London’s Living Wage employers believe that implementing the Living Wage has enhanced the quality of the work of their staff and that absenteeism had fallen by 25% on average.
At Creditspring, we are focused on solving the problem of unexpected expenses and reducing financial stress. We believe that by getting it right, we can make employees happier and more productive. It’s not just the right thing to do, it’s the smart thing to do!
If you're interested in how Creditspring can help you help your employees, just click here.