Financial stress peaks for employees in Australia
A new report from Australian insurance broker, risk management and consulting firm Gallagher has found that employee stress is costing employers AU$47 billion per year
Gallagher surveyed more than 1,000 Australians, finding that seven in 10 employees either worry about or spend time dealing with money at work; that 37 per cent said that financial stress affected their health; that 55 per cent were concerned about superannuation and retirement, with over two-thirds (68 per cent) noting that subsidised private health insurance would be more important to them than a company superannuation plan; and that 82 per cent of those surveyed asserted that such a health plan would be of ‘moderate to extreme importance’ as a financial confidence incentive.
The figures don’t lie, and as Graham Campbell, CEO of Gallagher's Employee Benefits and HR Consulting division, noted, the data – which is irrespective of employees’ positions or level of income – also shows that no group is immune to financial stress.
But what is causing this stress? Gallagher’s survey highlighted that 64 per cent of respondents cited unexpected costs and expenses as causing them the most stress, while inadequate savings (62 per cent) and rising living expenses (57 per cent) were also among the main factors contributing to stress.
Gallagher’s survey identified that while personal net worth 'increased significantly' between 2005-2006 and 2017-2018 (largely due to rising property values), average disposable income only rose $44 per week.
“In a slowing economy, employers may not be able to increase wages, but they can look at financial wellbeing support and education to help alleviate the burden for workers," Campbell said. "Employees of all ages and income levels face challenges that require better tools, programmes and education. A fruit bowl is nice as a company benefit, but if you want to make a real change to the lives of employees, supporting financial health not only improves wellbeing but will move the dial on employee engagement and productivity, and be the catalyst for business growth and profitability."
And the industry is picking up on this – according to Gallagher, one in four Australian corporations are developing financial education programmes as part of their employee benefits programmes. But there is still much work to be done.
Read the full report here.