Are you failing your female employees?
Why female financial wellness is vital to business success.
Currently, for every £100 that a man earns, women make £82.70.
There have been many positive initiatives to try and close this gap, but more women are still suffering from lower financial wellbeing than men. There’s a massive gender disparity which finds that on every index, women score lower than men when it comes to their financial wellbeing. On average women have a financial wellbeing score of 48.1 vs men’s 58.3.
We think this is a big issue and one that needs addressing in the workplace if businesses are going to increase growth and profits.
So what are the problems impacting your female employees, and how can you ensure they are adequately supported so that they can reduce financial stress? It might surprise you, but the answer isn’t just to pay them more!
When it comes to savings, women are lagging behind. Since 2017 there has been a 15% fall in the average amount of savings women have, in contrast to their male counterparts 8% rise to an average of £39k.
When it comes to women with no savings whatsoever, the numbers are similarly alarming. Over the past three years, fewer women managed to build any savings, whilst more men have managed to save. 14% of women have no savings, in comparison to just 7% of men.
34% of women run out of money each month, compared to just 22% of men.
The impact of having little to no savings can be huge. Despite men having more credit card debt (on average), one study found that 26% of women are not able to pay off their credit card bill at the end of the month. Only 14% of men said the same. This reliance on debt to plug the income disparity is leaving some women in dire straits. Facing mounting interest costs and missed deadline penalties, means that many get trapped in a cycle of debt, and without savings, struggle to get out of it.
Debt Charity Step Change has revealed that there are 4.5 million women who say they’re losing sleep due to their financial worries; more than 1.5 million more than men. Women are mainly worried about their ability to afford essential household goods, not having enough savings, and being in debt. Women are also feeling under intense pressure caused by their lack of preparedness for a financial emergency, with 33% giving this reason as the cause of stress.
Women are five times more likely to have anxiety issues, and 6.7 times more likely to have depression than men which they say is caused by money worries.
For your business, any of your employees suffering from poor mental health – impacted by poor financial wellbeing – is too costly to ignore.
Poor financial wellbeing costs UK businesses £29 Billion per year.
Your female employees are likely to be less confident when it comes to money and finance than their male equivalents. They are less likely to take risks with their money or make risky investments. Typically, women end up with far less in their retirement fund than their male counterparts due to a mix of being over-cautious, having family commitments that lead to work gaps or reduced working hours, and a chronic lack of pay parity.
This is a problem for your business because there will be a portion of employees that are unsure how to improve their financial situation – which ultimately costs you money.
Currently, 72% of women “would find general information highlighting steps to improve their financial wellbeing useful”, but only 12% have access to financial education resources from their employer. Businesses have a duty of care to make sure their employees have access to financial wellbeing products that enable them to work towards freedom and security.
Ultimately, employees want it, and they need it.
The financial wellbeing of your female employees really boils down to 3 simple things:
1. They need access to the best care and resources to teach them how to manage, track, and take care of their money in a way that’s right for their situation.
2. They need to have support from their employer when it comes to career and pay progression.
3. They want to work in an environment that supports them to be more open about their finances and to discuss how they can build a more robust and wealthier future.
We can help get your employees’ personalised financial wellbeing support through our innovative, tried and tested platform, Bippit.
Get in contact to find out how we can support your staff today.