As the ongoing cost-of-living crisis continues to create financial challenges for millions of people across the country, rather than feeling supported by their employer, nearly half (46%) of UK employees say they have missed a bill payment as a direct result of inaccurate payroll.
The research from HR, payroll, and finance software provider MHR reinforces the responsibility organisations have for the financial wellbeing of employees and demonstrates the wider impacts sloppy internal processes can have on a business and its workforce.
With more than two thirds of employees (65%) admitting their financial situation has affected their mental health this year, and slightly more – 67% – saying this directly affected their ability to concentrate at work, it is clear ensuring employees are paid accurately, on time, should be a top priority for businesses.
As such, MHR recently partnered with software provider Wagestream to integrate a financial wellbeing solution as an extension of its payroll service currently available through the People First and iTrent platforms.
It builds upon People First’s real-time capability – which allows employees to see how much money they are earning as they are earning it – and enables employees to access money from their pay-packet early, up to a maximum of twice a month. A third of employees (33%) say having this visibility and control over their payroll would help to reduce stress about their finances.
In turn, this can increase productivity at work, improve job satisfaction and increase employee retention over the long-term.
Anton Roe, CEO at MHR, said, “Organisations have a duty of care for employees that they must uphold, especially during challenging economic climates like the one the country currently finds itself in. Being confident they are going to be paid accurately, on time, should be the bare minimum an employee can expect from their employer.
“If organisations do not address the financial wellbeing of individual employees, soon enough the financial wellbeing of the entire business will be in doubt.
“Our research draws a direct link between employees’ financial wellbeing and engagement at work, which naturally impacts productivity and ultimately a company’s bottom line. This is only compounded by the increased flight risk of employees who feel they are not supported by their employer, which may lead to them looking for new opportunities elsewhere.”
