Financial Stress and Irish Employees MyMoney Report September 2013

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Financial Stress and Irish Employees MyMoney Report September 2013

  1. 1. Financial Stress & Employees Findings from research for My|Money September 2013 © Amárach Research
  2. 2. 2 A. Research Background & Objectives B. Research Methodology C. Profile of Sample MAIN FINDINGS: SECTION 1: General Public Debt and Stress Levels SECTION 2: Employees and Financial Stress SECTION 3: Employer Perception of Staff Stress SECTION 4: Financial Stress & Cost to Economy RESEARCH INSIGHTS & IMPLICATIONS Table of Contents
  3. 3. 3 Slattery Communications are working with MyMoney to promote the new financial advise service aimed at employees. As a result of the financial downfall in Ireland, it is understood anecdotally that financial stress is common among employees and may be impeding their ability to work efficiently in the office and may also lead to presenteeism. This theory has yet to be tested in the Irish market which is what we set out to do in this research while also testing potential appetite for the MyMoney service. A. Research Background & Objectives
  4. 4. 4 A number of questions were placed on the Amárach Research September omnibus. The omnibus survey is a syndicated survey whereby clients can include questions within the survey. A total sample of 1001 was achieved with quotas set on gender, age, social class and region to achieve a sample aligned with national population. Due to the high proliferation of the internet among the Irish population, the Amárach Research omnibus is completed fully online. Interviewing fieldwork dates were September 9th – 13th. Research Methodology
  5. 5. 5 C. Profile of Sample – General Public 49 17 28 48 36 51 22 27 52 17 19 28 13 16 18 10 26 10 1 12 Male Female 15-24 50+ 25-34 35-44 ABC1/ F50+ C2DE/ F50- % % % % Leinster Munster % Conn- aught Ulster Gender Age Region Social Class Employment Status (Base: Nationally aligned sample of Irish Adults – 1,001) (QX) A naitonally aligned sample of Irish adults was surveyed for this research with quotas set on gender, age, region and social class from the CSO 2011 Census. 45-54 Work full time Work part time Student Housewife Retired Full-time Career Unemployed Refused *
  6. 6. 6 C. Profile of Sample – Employees Breakdown by Demographic (Q.E) Among the sample of employees, one third work in the public sector, while 6-in-10 are in the private sector. Men are more likely to work in the private sector while Munster residents are more likely to work in the public sector. * (Base: Irish Employees - 530) 32% 6% 62% % Private Public Other Total Gender Region Private 62 71 52 64 66 56 66 Public 32 26 39 31 29 38 29 Other 6 3 9 5 5 6 5 %
  7. 7. MAIN FINDINGS
  8. 8. 8 Key Findings I Overall cost of employee financial stress to Irish Business is €2.1 Billion State of a financially stress nation 91% of employees are in financial stress 68% of employees have debt that threatens to overwhelm them 41% of those surveyed say that they are not on control of their finances 67% are not planning or saving for emergencies Those who are not in control – 65% saw living expenses exceed income, 34% became unemployed, 30% saw accounts overdrawn, 24% missed payments on mortgages/loans and 24%had overdrawn accounts When it comes to financial planning and looking for information Only 11% went to financial planning websites 41% asked friends and neighbours 29% looked at newspapers 22% asked the bank manager Financial Goals and planning 55% had a weekly/annual budget, 66% used a paper based system 64% had financial goals o Paying bills on time o Increasing savings o Pay off credit card o Creating emergency funds Financial stress and its effects: When asked about financial stress 91% indicated they had experienced financial stress over the last 12 months 26% indicated they had high financial stress 7% indicated extreme financial stress From those who reported financial stress 39% said they live from paycheque to paycheque and 30% worried about making ends meet 25% felt they would not meet their future financial goals 19% reported they felt their financial situation was out of control The effects of financial stress Sleep/financial stress 41% lost sleep at least once a week 8% every night Average employee loses 37 minutes a day with financial stress Work 42% said it did not impact on their ability to work 26% said it had a small impact on their work 23% said it had an impact 8% said it impacted greatly on their work Absenteeism Financially stressed employees absenteeism costs €850,000 daily
  9. 9. 9 Key Findings II Manager’s/Employer’s view When Managers and employers were asked if they felt their staff were stressed 47% said staff were stressed 10% said very stressed 21% neither nor 12% did not know Stress and productivity – the manager/employer’s view 78% of managers and employers felt financial stress led to decreased productivity Solution Interest in financial solutions 43% would be interested in My|Money being offered by their employer 23% would be very interested in My|Money being offered by their employer Usage 45% said they would be likely to use My|Money if offered by their employer 23% said they would be very likely to use use My|Money if offered by their employer
  10. 10. Section 1: General Public Debt & Stress Levels
  11. 11. 11 Personal Debt Levels 5 5 21 25 43 47 30 22 1 1 n=1,001 n=532 EmployeesGeneral Public Overwhelming High Same Debt No Debt Don’t know (Q.1a) 69% 77% 7-in-10 Irish adults say they have some level of debt (26% saying high/overwhelming) while this figure is higher for those in employment at 77%. Those aged 35-54 are most likely to have some debt (83%). (Base: Nationally aligned sample of Irish Adults – 1,001)
  12. 12. 12 Lack of Financial Knowledge & Debt Levels n=683 n= 408 EmployeesGeneral Public (Q.1b) One-third of Irish adults and Irish employees who have debt say their lack of financial knowledge contributed to this situation. Those aged 15-34 are more likely to agree with this statement (39%) and so are most in need of assistance. (Base: All who have debt – 683) 32% 68% % No Yes 32% 68% % No Yes
  13. 13. 13 Not at all controlled (1) Very much in control (5) Level of Control of Finances (Q.2) 6-in-10 Irish adults and Irish employees feel they are in control of their finances. A quarter said neither nor suggesting a level of uncertainty while 17% (general public) and 15% (employees) are not in control of their finances. (Base: Nationally aligned sample of Irish Adults – 1,001) 14 13 3 2 44 46 16 15 (3) Mean Score 24 3.6 25 3.6 General Public (n=1,001) Employees (n=532) (2) (4)
  14. 14. 14 Techniques for Staying in Control of Finances (Q.3) Paying off bills on time each month is the method most use to stay in control of their finances (71%), although only 43% regularly pay off their credit card bills on time. (Base: All who are in control of their finances – 593) % Pay my bills on time each month Regularly check bank account/finances Spend less than I earn each month Regularly pay off credit card bills in full Have an emergency fund Other Don’t know 71 67 62 43 33 1 1
  15. 15. 15 Reasons for Not Being in Control of Finances (Q.4) There are a variety of reasons for not being in control of one’s finances but the basic problem that expenses exceed income is mentioned by most Irish adults. Assistance and education on methods for reducing expenses without impacting significantly on quality of life would be beneficial. (Base: All who are not in control of their finances – 165) % Living expenses exceed income You/your partner became unemployed Accounts overdrawn Credit card maxed out Missed payments on mortgage/loan You/your partner had your hours reduced Don’t know who to trust for financial advice Don’t track money each month Find finances confusing 70 34 30 25 24 22 21 15 12 * All others less than 10% ( ) = Those who are currently in employment (78) (22) (36) (33) (33) (31) (25) (15) (15)
  16. 16. 16 Weekly/Monthly/Annual Budget n=1,001 n= 532 EmployeesGeneral Public (Q.5a) Just over half of Irish adults and Irish employees have a weekly, monthly or annual budget. Those who have debt or are overwhelmed with stress/financial stress are most likely to have a budget suggesting that many are trying to regain control of their finances. (Base: Nationally aligned sample of Irish Adults – 1,001) 55% 45% % No Yes 56% 44% % No Yes
  17. 17. 17 Weekly/Monthly/Annual Budget n=554 n= 297 EmployeesGeneral Public (Q.5b) Paper based systems are most frequently used to keep budgets although men are more likely to use an excel spreadsheets than women. Those who are not financially stressed are most likely to use online spending apps. (Base: All who budget – 554) % Use a paper based system Use an excel spread sheet or equivalent Use an online spending planner app Calculate budget in my head Careful not to overspend Credit Union budget account 67 25 5 4 1 1 % 64 30 5 4 * 2
  18. 18. 18 Financial Goals n=1,001 n= 532 EmployeesGeneral Public (Q.6a) Two- thirds of Irish adults and Irish employees have some financial goals. Those aged 25-34 are most likely to have financial goals (71%) while those aged 55+ are least likely (55%). Higher income families (i.e. €80k+) are also very likely to have financial goals (73%). (Base: Nationally aligned sample of Irish Adults – 1,001) 64% 36% % No Yes 68% 32% % No Yes
  19. 19. 19 Prioritised Financial Goals Over the Next 12 Months (Q.6b) The primary financial goal for Irish adults is to pay off bills on time, while many would like to increase their level of savings. Paying off bills is more important for those aged 55+ (69%) while those aged 25-34 are most likely to prioritise their savings (72%). (Base: All with financial goals – 634) 25 22 8 12 6 3 7 7 7 22 22 17 11 8 7 4 5 3 16 17 20 10 9 8 6 3 2 Pay your bills on time Increase level of savings Create emergency fund Paying off credit card bill Save for adequate pension in retirement Set up college fund for children Purchase new first home Pay off mortgage Stay/come out of arrears on mortgage Main priority 2nd priority 3rd priority 63 61 45 35 23 18 17 15 12
  20. 20. 20 Reasons for Not Having Financial Goals (Q.6c) (Base: All who do not have financial goals – 357) % Living day to day Have too little income Don’t need them Retired/on pension Finances under control Too young to consider real financial goals Unemployed Other Don’t know 28 20 10 7 7 3 3 4 20 Nearly 3-in-10 say not having financial goals comes as a result of a lifestyle choice (living day to day) while 1-in-5 feel they do not have sufficient income to warrant having financial goals. Over half (54%) of those aged 45-54 say they are living day by day while 35% of those aged 35-44 say they have too little income.
  21. 21. 21 Sources Used for Financial Information Within the Past 12 Months (Q.7) A wide variety of sources are used for financial information although the most common source is family/friends. 1-in-5 spoke with bank staff/manager in the past 12 months while 1-in spoke with an accountant/financial expert. Households with earnings less than €20-30k per annum are least likely to speak with anyone about their finances. (Base: Nationally aligned sample of Irish Adults – 1,001) 41 29 22 20 16 11 11 9 5 4 1 19 2 Family/ Friends News- papers Bank Staff/ Manager Other Online Website Accountant /Other Financial Expert Dedicated Financial Planning Websites Work coll- eagues Financial Magazines Neigh- bours Employer Other None of These Don’t know
  22. 22. 22 General Level of Stress in the Past 12 Months 7 6 29 30 56 58 8 6 1 1 n=1,001 n=532 EmployeesGeneral Public Overwhelming stress High stress Some stress No stress Don’t know (Q.8a) 91% 93% A very high proportion of Irish adults (91%) and Irish employees (93%) have been stressed over the past 12 months. 98% of those with overwhelming debt feel stressed while 84% of those without debt felt stressed in the past 12 months. (Base: Nationally aligned sample of Irish Adults – 1,001)
  23. 23. 23 Main Causes of Stress in Life (Q.8b) (Base: All who are stressed – xxx) % Financial/money issues Family/relationship issues Health issues Work related issues Daily issues Major life changes Unemployment Education/Exam pressure Don’t know 37 15 13 11 10 5 5 2 1 Financial/monetary issues are the most likely cause of general stress for Irish adults. This is particularly true for those aged 35-54 (49%), those with a mortgage (49%), and those with overwhelming debt (69%) or high debt levels (64%).
  24. 24. 24 Financial Stress of the Past 12 Months 7 26 49 16 2 Stress level is overwhelming Stress level is high Same financial stress No financial stress Don’t know (Q.9a/9b) 82% (86%) (n=816) 8-in-10 Irish adults Irish adults are financially stressed (increasing to 86% for Irish employees). For those who are financially stressed, 4-in-10 feel they live pay cheque to pay cheque. (Base: Nationally aligned sample of Irish Adults – 1,001) ( ) = Those in employment I live pay cheque to pay cheque I am very concerned about not being able to make ends meet I don’t think that I will meet future financial goals I feel that my current financial situation is under control None of these 39 31 25 19 12 (5) %% (27) (54) (12) (2) (5)
  25. 25. 25 Frequency of Sleeping Difficulty due to Financial Stress n= 816 n= 456 EmployeesGeneral Public (Q.9c) 4-in-10 of those who are financially stressed are having trouble sleeping on at least a weekly basis. This increases to 82% among those who are overwhelmed by debt and 97% among those who are overwhelmed by financial stress. (Base: All who are financially stressed – 816) % Every night Every 2/3 nights Once a week Once a 2/3 weeks Once a months Less often Never Don’t know 8 17 16 9 11 19 17 2 % 8 14 16 10 13 19 18 2
  26. 26. Section 2: Employees & Financial Stress
  27. 27. 27 Impact of Financial Stress on Ability to Work 8 24 26 41 1 Yes – Impacted greatly No Don’t know (Q.10) 58% 6-in-10 employees with financial stress feel it is impacting on their ability to work. This is higher among men (64%) and those aged 25-34 (66%). (Base: All in employment who are financially stressed – 456) % Yes – Impacted somewhat Yes – Minor impact
  28. 28. 28 Work Missed as a Result of Financial Stress n=456 Employees (Q.11a/b) 9% of employees who are financially stressed have missed work as a results. On average they have missed 9 days of work although the majority (51%) have only missed between 1-5 days. (Base: All in employment who are financially stressed – 456) 90% 9% 1% % No Yes 51 22 15 7 6 % Number of days missed Don’t know 9Mean: * Caution small base size (N=43*) 21+ 16-20 days 11-15 days 6-10 days 1-5 days
  29. 29. 29 Amount of Time per Day Pre-Occupied with Financial Issues at Work 54 14 10 21 1-30 Don’t know (Q.12) The average employee spends 37 minutes pre-occupied with financial issues at work. This rises to 44 minutes among those aged 25-44, to 46 minutes for those with a mortgage, and is over an hour on average for those with overwhelming debt, a lack of financial control, overwhelming general and financial stress. (Base: All in employment – 530) % Mins 31-60 61+ Mean 37 Mins
  30. 30. Section 3: Employer Perception of Staff Stress
  31. 31. 31 Supervision, Management or Employment of Staff (Q.15) 4-in-10 Irish employees said they were responsible for the supervision, management or employment of staff. (Base: All in employment – 530) 59% 41% % No Yes
  32. 32. 32 Perceived Level of Financial Stress of Employees 16 47 21 7 5 11 (Q.16) (Base: All who supervise, manage or employ – 217) % Very stressed (5) Of these, 7-in-10 say their employees feel financially stressed. Stressed (4) Neither/nor (3) Not stressed (2) Don’t know Not at all stressed (1) Mean: 3.6 69% 12%
  33. 33. 33 Impact of Financial Stress on Productivity (Q.17/18) Among those who say their staff are stressed, 78% have noticed an impact on their staff’s ability to work effectively. 55% of employers say staff have missed some time in work due to financial stress. (Base: All who supervise, manage or employ – 217) 22% 78% % No Yes 28 12 8 8 45 % Days missed on a result of financial stress 1-2 (Base: All who felt staff are stressed – 121) Financial stress leads to decreased productivity 3-4 5-6 6+ Don’t know

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