Gaps in financial inclusion in the workforce are being “underestimated” by HR, with serious implications for productivity and wellbeing, new research has warned.
Women and non-managers face significantly greater financial challenges than the average UK employee, but the scale of situation is not recognised by HR professionals.
The finding was revealed in a survey of 2,000 UK employees and 500 HR managers by financial wellbeing provider Bippit.
Financial stress
Survey results showed that 18 percent of UK employees worry about money daily, but women are more than three times more likely than men to feel this stress, with 28 percent of working women affected. Non-managers are more than twice as likely to worry about money than managers and twice as likely to feel unsupported by their employer.
Research, detailed in the report Dynamics in Financial Wellbeing: The Inclusion Edition 2024, found that HR isn’t closing these inclusion gaps. Nearly two fifths (39 percent) of non-managers said their organisation provides no financial wellbeing support to them, compared to 12 percent of managers. Women are also three times less likely to share their money worries with their employer than men.
Lived experience disconnect
The research suggested that there’s a disconnect between HR and the lived experiences of these groups, which is why the issue is not being addressed.
Only 17 percent of HR professionals said money is their top stressor, behind work, mental health, physical health, and friendships.
But for 37 percent of women and 34 percent of non-managers, money is their top concern. The disconnect is further highlighted when it comes to perceptions of employer support.
Almost three-fifths (59 percent) of HR professionals believe they provide financial support that meets employee needs, while only 44 percent of employees agree. The percentage is even lower for working women at 31 percent.
Money and mental health link
Sam Lathey, chief executive of Bippit, said: “We have found that there are considerable differences in the lived experiences between HR professionals and employees, which may be shielding HR from the struggles that their people are experiencing. This appears to be leading HR to underestimate the scale of inclusion challenges across various groups in the workforce, which could have significant implications for how we design inclusive financial wellbeing strategies in the future.”
Andrew Berrie, head of corporate partnerships and leading workplace wellbeing at Mind, said: “Bippit’s research highlights the importance of taking a person-centred approach to any employee engagement and support strategy.
“The link between money and mental health is well known. Poor mental health can make managing money more difficult and financial difficulties can make our mental health worse. The cause of financial concerns will vary within each workforce but could include things like debt, dealing with unexpected changes in life, or not being well enough to manage finances. Likewise, the impact this has on mental health will vary from person to person. Organisations need to understand the financial challenges their workforce might face and how to support them.”
