Employers failing to support workers during cost-of-living crisis

Overall, the study from the HR and payroll specialists shows businesses are falling behind on their responsibility to protect the well-being of their employees during the cost-of-living crisis. It found that 45% of employees say money worries are affecting them at work.  

It also shows the crisis in the UK and Ireland is causing anxiety among employees, with 73% now more worried about their finances than they were prior to the pandemic. This number rises to 80% of those with lower numeracy, and 81% of those with a diagnosed mental health condition. 

This, according to Zellis, shows employers must take steps to protect their most vulnerable employees from further avoidable anxiety around their finances. 

Worries around navigating the crisis are also being compounded by uncertainty over the accuracy and reliability of pay, with 38% of employees admitting they’re not fully confident they understand their payslip - or could spot an error. 

Almost half of the respondents - 49% - reported payroll errors, such as being paid late or the incorrect amount, would have a negative impact on their mental health. An additional 36% say checking their payslip makes them feel uneasy and worried about their finances, with 24% saying this is because they don’t really understand it. 

Responding to its findings, Zellis’ chief innovation officer Gethin Nadin said the research sends a “clear message” to employers that they “must do more to support” their staff through the crisis. 

He added: “As the cost-of-living continues to hit workers hard, employers must do everything they can to ease anxiety about pay and bridge the numeracy gap to ensure employees are making the best money decisions. 

“This means helping employees to understand their payslips, ensuring financial information is clear and concise and making employees feel comfortable about raising concerns or questions about pay.”

The research also found that 48% of respondents wouldn’t be able to identify an error in their tax codes. This, Zellis says, highlights a worrying potential mental health timebomb with 51% claiming a mistake in their pay would lead to stress anxiety, and half saying it would lead to financial difficulties - such as not being able to pay rent. 

Nadin explained: “At a time when so much is out of employees’ control when it comes to their money, it’s clear that employers need to do more to help their people overcome the challenges of a lack of numeracy and financial stress, but it is also on them to ensure that their payroll is accurate and timely. 

“This research shows the implications of simple payroll mistake on employees can be incredibly serious, and these errors are significantly magnified during this time of uncertainty.”