Real-term pay increases and financial education can ease impact of inflation
Stacey Lowman, head of employee wellbeing at Claro Money, said: “News that inflation has hit a 40-year high will be a worry for many that are already struggling with the increasing cost of living. The mental health impact of increased costs and diminishing savings should also not be underestimated, with mental wellbeing plummeting among people with low levels of financial confidence.
“Low levels of financial literacy undermines the mental wellbeing of adults, and our research shows that 86% of employees say personal financial worries impact their work performance too. Therefore, there is an opportunity for employers to support their employees with money worries via training, coaching and financial incentives.
“Considering the 54% energy cap price increase that has already taken place and the spiralling cost of fuel, both employees that work from home and that commute to the workplace have been impacted by increased costs to carry out their jobs and few have received pay increases. We would like to see more real-term pay increases and employers stepping up to provide better financial education to improve financial literacy and overall employee wellbeing.”
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