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Monday. We use, want it, need it and spend our lives working for it but we don’t like talking about it – particularly at work. Over two-thirds (68%) of UK employees with money worries wouldn’t tell employer according to new research by UK Hospitality parter, Wagestream, in its State of Financial Wellbeing: The Cost of Living Crisis report, with contributions from the Money and Pensions Service and The Work Foundation.
This article will explore the need to address the significant money stigma active in the workplace that is currently making it difficult for organisations to have a genuinely positive effect on supporting financial wellbeing.
In addition to the many challenges faced as a result of the pandemic, the cost-of-living crisis has contributed to a staggering increase in financial stress. As a result, 83% of people now want their employer to focus as much on financial wellbeing as on mental and physical health. However over three-quarters (76%) have not approached their employer asking for support. despite suffering worsening mental health issues like stress due to the current rising costs.
Stigma leads to silent suffering
There are a number of reasons why people are reticent to talk to an employer about their money worries, which can range from the fear of discrimination and unfair dismissal, to a lack of trust. Sadly over one third (35%) say it’s because they don’t want people to think they’re struggling and a further third (31%) say it’s due to shame or embarrassment.
The mantra ‘no news is good news’ does not ring true in this instance. Just because your employees have not shared their financial woes with you does not mean they are coping with the heavy burden of navigating the current economic crisis without your support. Close to all UK employees (96%) have seen their living costs rise and, as a result, 70% now worry more about money. Over half (52%) of the workforce want their employer to help over the next three months.
Be proactive to destroy the money stigma
If money stigma is left unchecked in your workplace it could limit your ability to improve financial wellbeing, which will lead to negative trends around reduced productivity and performance and increased potential for absenteeism.
The hospitality sector has made ongoing efforts to tackle the mental health stigma, enabling employers to make good progress when it comes to easing employees’ trust and comfort levels when discussing mental illness in the workplace. The new research highlights that the same must be done with money to give workers the best chance of improving their financial wellbeing.
Kate Nicolls OBE, Chief Executive at UKHospitality says:
"The hospitality industry suffered greatly from the pandemic and its recovery continues to be threatened by the current cost of living crisis. Many of the challenges faced by employers today feel out of their control - from soaring supplier costs to low levels of consumer spending. That's why we're supporting Financial Wellbeing Week and showing them they still have the power to drive positive change. We want to help every hospitality employer to recognise the importance of supporting their workers' financial wellbeing."
If you’re worried about the impact of money stigma in your organisation, you can access some tips for combatting it by downloading Wagestream’s full report here.
About Wagestream
Wagestream is the financial wellbeing app founded with charities, designed for frontline workers and built around pay. Offered through caring employers like Bupa, Halfords, Pizza Express, Co-op and the NHS, it makes work more inclusive, fair and rewarding for two million people – by giving them access to fair financial services built around flexible pay.
Wagestream is driven by a social charter: every service it provides must measurably improve financial wellbeing. Over 70% of people using Wagestream feel more in control of their money, leading to a happier, healthier, more productive workforce.