Workers low performance linked to poor remuneration
The Charted Institute of Personnel Development (CIPD) has said that workers take home pay goes a long way in boosting employee effectiveness and productivity, as well as a critical factor to the growth of any organisation.
A report by the CIPD noted that organsations with rising inflation were likely to experience pay squeezes but companies need to do more to help their employees cope with their financial concerns.
According to CIPD, about a third of workers suffer from money problems to the extent that it affects their ability to do their jobs effectively. A new survey of more than 1,800 employees revealed that the number of employees with such problems has risen to 31 percent among 18-24 year olds and 32 percent for older workers.
The research, carried out by the CIPD and Close Brothers Asset Management highlighted why organisations need to do more to promote and actively support the financial well being of their work force, especially in climes where pay gets squeezed as inflation rises.
The reward and performance adviser at the CIPD, the Human Resources (HR) and people development professionals, Charles Cotton said: “The report clarifies how financial well being can impact not just employees 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 is clear that organisations should be focusing 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 pay squeeze and increased concerns about personal finances.”
The Head of Financial Education at Close Brothers Asset Management, Jeanette Makings said: “Pensions changes, increasing life expectancy, uncertain economic times rising inflation and constant changes to the tax system mean that the financial landscape has never been more difficult to navigate.
“Money worries now weigh heavily on a huge number of employees across the country, impacting their performance in the workplace. So it is more important than ever that employers recognise the role they can play in helping staff to understand and improve their financial well being.”
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