A new survey of more than 1,800 UK employees, by the CIPD (Chartered Institute of Personnel and Development), found the number reporting problems rises to nearly a third (31%) among 18-24 year-olds and those living in London (32%).
It’s not just those in low paying jobs affected, with one in five of employees earning £45,000 to £59,999 saying financial anxiety has impacted their ability to do their job.
The report also reveals women are more likely than men to report money worries are affecting their work, with nearly three in ten (28%) women reporting the problem, compared to less than one in four (23%) men.
Charles Cotton, reward and performance adviser at the CIPD, said: “This report shines a light on how financial well-being can impact not just employee health, but also workplace productivity.
“Money worries affect people regardless of their age, gender or level of pay, and with one in four admitting it negatively impacts their work, it’s clear that organisations should be focussing on financial well-being as part of their workplace agenda.
“This will become increasingly important over the next 18 months, as rising inflation is likely to lead to a pay squeeze and increased concerns about personal finances.”
Lack of sleep was noted as the most common explanation for how financial concerns impact upon people’s productivity with 19% of employees reporting this.
Workers in Wales are more likely to rate being able to comfortably pay off existing debts as an important aspect of their financial well-being (55%) than the UK as a whole (45%) while Londoners (60%) are more likely than the UK as a whole (38%) to value being able to save for the future.