Evidence type: Insight i
Qualitative research is more exploratory, and uses a range of methods like interviews, focus groups and observation to gain a deeper understanding about specific issues - such as people’s experiences, behaviours and attitudes.
Quantitative research uses statistical or numerical analysis of survey data to answer questions about how much, how many, how often or to what extent particular characteristics are seen in a population. It is often used to look at changes over time and can identify relationships between characteristics like people’s attitudes and behaviours.
The survey explores employees’ views on financial wellbeing. Stress caused by pay levels, lack of financial awareness or absence of employee benefits can affect work performance. In addition, the perception that their contributions are not being acknowledged can have an impact on employee self-esteem, health and productivity.
The study follows the previous Chartered Institute of Personnel and Development (CIPD) report ‘Growing the Health and Well-being Agenda: From first steps to full potential’ which showed that an integrated approach to health and well-being can increase levels of employee engagement while fostering a workforce where people are committed to achieving organisational success.
Findings from this study inform the CIPD’s report ‘Employee Financial Well-being: Why it’s important’ and supports the CIPD’s Employee Financial Well-being: Practical guidance, which helps HR professionals implement a financial well-being strategy for employees in their own organisations.
A survey of 1,817 working adults across all industrial sectors, was carried out online by YouGov for CIPD. It was undertaken between 12 and 22 September 2016 and is representative of the UK workforce in relation to sector, size and industry type. The survey asked employees how money worries and financial wellbeing affected their ability to do their job.
Results are primarily analysed by sector, organisational size, managerial position and pay. In some cases, net scores have been used to display results: these are calculated by subtracting the percentage of respondents who say something positive from the percentage who say something negative, measuring the strength of the direction of feeling rather than simple agreement scores.
Lost output caused by money worries:
Financial well-being and how it can be improved:
Seeking financial advice or help:
Barriers to financial well-being:
The findings in this report show that poor financial well-being is a clear and present issue for employees, employers, the economy and society. The findings are translated into implications for employers aiming to have a financial wellbeing strategy in place including a key role for HR.