The Great Risk Transfer: employment and financial wellbeing
20th August 2024
This research examines the impact of the Great Risk Transfer on individuals and society through the changing relationship between employer and employees.
What are the implications on productivity and aspirations for economic growth?
The report shows that a third of employers only provide the bare minimum when it comes to sick pay and pensions.
It also highlights how staff in hospitality, retail and social care are the most financially vulnerable and that over a quarter of Scots lose sleep over money worries.
The research finds:
more than two-thirds of employers (70 per cent) are concerned over the impact of financial strain on their employees and their productivity, citing increased stress on managers and other staff (35 per cent) and a rise in absenteeism due to poor health (28 per cent)
But
a third of employers (33 per cent) in Scotland do not offer any enhanced benefits as part of their employee benefits package
more than half (56 per cent) do not currently include financial wellbeing in strategies to support employees.
The Great Risk Transfer report recommends the need to:
Recognise employers’ power to drive change. Employers should recognise the connection between financial wellbeing and productivity and how their actions might alleviate employee’s pressures
Increase understanding of Living Pensions: Government and employers should work together to increase understanding of the need for Living Pensions and that employees on auto-enrolment minimums are not currently likely to be saving enough to live well in retirement
Complete the Pension Provision Review. The review of pensions provision signalled by the Labour Party before the 2024 election should go ahead and include a specific focus on potential improvements and innovations in workplace pensions.
This is the second piece of research the David Hume Institute has produced in partnership with the Institute and Faculty of Actuaries about the Great Risk Transfer.
David Hume Institute commissioned the Diffley Partnership, to investigate employer attitudes to the Great Risk Transfer as part of this research. The survey was conducted in May and June 2024 and is based on responses from 550 businesses. The full survey results were published as an appendix to the main report.
Read more:
Press release - Bare minimum from many employers driving poor productivity.
Watch the event launch recording here.
Image credit: sharing thumbnail image by The Chaffins free from Unsplash on 07.08.2024
