Over half of females cite ‘limited disposable income’ as a key reason for struggling to reach their financial goals
Sodexo Benefits and Rewards Services, a leading provider of employee benefits and rewards services, has today unveiled new research showing the different challenges faced by male and female employees when it comes to putting aside money each month.
Even though it has been over 40 years since the arrival of the Equal Pay Act, men are still being paid significantly more than women in a number of industries. As such, it is somewhat unsurprising that 54% of women say they struggle to put aside any funds away due to limited disposable income, compared to just 40% of men. Other reasons cited were lack of discipline (32% of women, 25% of men) and ‘something always gets in the way’ (53% of women, 45% of men).
The survey of 760 UK employees, ranging from 18 to 64 years old, found that the age group for both sexes worst affected by financial stress were those aged 18-34 (36%). Personal finances are often considered to be a private matter. However, this is not just a problem for individuals, but businesses and the UK economy as a whole with financial stress affecting employees’ performance in the workplace. Research showed that 22% of UK employees stated that the stress of their financial situation impacts negatively on their work productivity.
To help alleviate employee financial stress and enhance employee wellbeing, Sodexo Benefits and Rewards Services has launched Money Boost. This totally new breed of employee benefit is set to become an important feature of employee benefit plans as a way for employers to help reduce their employees’ workplace financial stress and enable them to reach their personal financial goals. Money Boost is a simple online money management tool that helps employees take control of their finances by allowing them to prioritise what is important to them; funds are simply deducted at payroll and automatically transferred into an e-money account that employees can access at any time.
Iain McMath, CEO of Sodexo Benefits and Rewards Services, said:
“The extent to which financial stress is affecting UK workers should cause employers to sit up and take notice. Women are struggling more than men to set aside money each month which is cause for concern, given the ‘equal opportunities’ that so many businesses claim to offer. Whilst personal circumstances can play a huge part in an individual’s financial situation, the fact that over half of the women surveyed claim they don’t have enough disposable income to put any money aside is extremely concerning for the overall economy.
Whilst there is no quick fix to this problem, if employers are able to offer their employees financial education, as well as a way to structure and gain more control over how much of their wages they put aside for a special occasion or as an emergency fund, this can go a long way towards relieving the stress of financial concerns – for both men and women alike.”
