The research highlights several ways employees feel their employer could better support their financial wellbeing and mental health during this challenging time.
Interestingly, employees point to increased and improved education on payroll concepts as the single biggest measure employers could take to enhance their wellbeing.
Employers helping them to better read and understand their payslips would have a significant impact, according to 43% of those surveyed.
Employers should also recognise the important role that line managers can play in protecting and enhancing wellbeing, if they can spot signs of people struggling.
37% of people say employers should train managers to better understand how to support employees struggling with finances or mental health issues.
of respondents say employers should train managers to better understand how to support employees struggling with finances or mental health issues.
Employees also point to a range of more practical steps that employers can take to support their financial wellbeing: from cost reduction schemes (such as travelcard loans and membership discounts), and payroll savings schemes to make it easier for employees to save money, through to low-cost loans to manage short-term financial emergencies.
Communication is key, with 30% of employees calling for more personalised communication on payroll and financial wellbeing; 22% want more signposting to appropriate financial guidance and education.
Technology also has a role to play, with 28% feeling that employers should improve and simplify access to HR systems and payslips to support wellbeing.
Overall, 87% of employees point to at least one step their employer could take to better support their wellbeing.
In which of the following ways do you think your employer could better support your wellbeing?
Chief People Officer at EMIS Health, Non-Executive Director at Zellis
“Employers are being put in a position they haven’t been in for many years, where they’re having to take a far more active role in employees’ lives outside of work. For some, it’s not a comfortable place to be. For a long time, employers have left employees to spend and save their money however they like, simply facilitating and providing support and financial products from a distance. But this simply isn’t enough, given the cost-of-living crisis we’re now facing. They need to start listening to what their employees are asking for and putting in place robust plans and policies which directly target financial wellbeing.”
Head of Reward and Deputy Director of HR, University of Lincoln
“What we’re seeing now is a change in the relationship between employee and employer. That sense of who to turn to for education, support, and help is now part of the engagement picture. It’s not something employers can ignore, as we know how intrinsically linked financial health, mental health, and the ability to perform at your best are. Now is the time for employers to step up their approach to financial health and do all they can: not only to support those who need assistance, but also to proactively lay the foundations of education programmes and benefits to underpin the right behaviours. Over the next few years, managing and understanding your pay will be key, along with the self-service functionality that embraces ownership of finances.”
Chief Innovation Officer, Zellis
“Regardless of what is causing them stress or anxiety, an employee who is struggling must have the confidence to speak to someone at work about it. Whether this is a line manager or a mental health first aider, we must ensure that our teams are prepared to handle a conversation about financial stress in the same way they would a mental health condition. This means encouraging openness, signposting support, and enabling communications to remove the stigma associated with talking about money at work. Leadership plays a key role in giving people permission to do these things by opening up about their own struggles.”
As the previous report showed, UK and Ireland employees do have a basic level of understanding on the most common elements of a payslip. It found that 74% of employees are able to correctly identify ‘net pay’ as the term for pay after all taxes and deductions, while 72% recognise that the basic rate of income tax in the UK and Ireland is 20%.
However, while most employees understand their net income and rate of tax, many feel that payslips could be made simpler. As many as 71% of employees point to at least one factor that makes their payslips hard to understand.
The biggest issue employees have with payslips is the excessive use of acronyms or terms that they don’t recognise – this is cited as an issue by 28% of employees. Other issues include payslips looking too complicated or containing too much detail.
The research also highlights the importance of accessibility and ease of use when it comes to payslips – 19% of employees state that difficulties logging into a portal or platform or having to remember passwords can make the whole payroll experience more difficult.
These issues can be addressed by employers relatively easily. It requires them to look at how they design payslips and present information, and the technology platforms they use to send payslips.
These all help to explain why 63% of people with low levels of confidence in their numeracy skills do not always check their payslips.
63% of people with low levels of confidence in their numeracy skills do not always check their payslips.
of people with low levels of confidence in their numeracy skills do not always check their payslips.
Evidently, employers (and the payroll industry itself), have to find ways to demystify payslips. This means presenting information clearly, avoiding acronyms, and eliminating complexity. A payslip should be accompanied with useful, concise information on how to read it and, critically, on which figures employees should be looking for and checking.
Employers need to move away from the idea that education on payslips is only for new entrants to the workplace. The research has shown a need for ongoing, lifelong learning about numeracy and pay. Payroll should be providing information on how to check and query tax codes, how to check eligibility for tax exemptions, and to make claims where appropriate.
Alongside this, employers need to make it easier for people to ask questions about their pay without feeling anxious or embarrassed. This means establishing rapid and discreet channels of communication.
At a broader level, there is also a need for employers to demonstrate to employees that not only are they being paid correctly for their work, but also that they are being rewarded fairly for their efforts. This can have a profound impact on financial wellbeing.
This means being open and transparent about how salaries and wages are worked out, and what employees need to do in order to achieve a pay rise. And it also means showing people how promotions and pay increases will increase the value and range of benefits available to them.
What makes a payslip harder to understand?
Senior Performance and Reward Advisor, CIPD
“We need to see more communication and collaboration between payroll and HR. In particular, we need greater and faster sharing of data in relation to things like sick pay and absenteeism. Payroll should be reporting to HR on uptake of savings schemes and levels of pension savings so that they can see in real time how employee behaviours are changing and make decisions based on this insight.”
“When banks moved from paper-based monthly statements by post to apps that could be accessed day or night, consumers’ banking habits improved. The ability to regularly check their accounts and be more aware of balances helped people to make more informed decisions about their spending. However, since payslips moved from brown paper packets to online and interactive form, our old habits of only checking our pay infrequently remained. Employers should be encouraging their people to regularly ensure pay is correct, commission and bonuses have been accurately calculated, and deductions are as expected. By better engaging our people in their pay and payslips, we are ensuring they take a more proactive and preventative view of their overall financial wellbeing.”
