Financial Stress and Irish Employees MyMoney Report September 2013

Financial Stress & Employees Findings from research for My|Money September 2013

© Amárach Research

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

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

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

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

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

%

MAIN FINDINGS

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

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

Section 1:

General Public Debt & Stress

Levels

11

Personal Debt Levels

5 5

21 25

43

47

30 22

1 1

n=1,001 n=532

Employees General 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%).


12

Lack of Financial Knowledge & Debt Levels

n=683 n= 408


(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

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.


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

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

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

Weekly/Monthly/Annual Budget

n=1,001 n= 532


(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.


55%

45%

%

No

Yes

56%

44%

%

No

Yes

17

Weekly/Monthly/Annual Budget

n=554 n= 297


(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

Financial Goals

n=1,001 n= 532


(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%).


64%

36%

%

No

Yes

68%

32%

%

No

Yes

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

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

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.


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

General Level of Stress in the Past 12 Months

7 6

29 30

56 58

8 6 1 1

n=1,001 n=532


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.


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

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.


( ) = 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

Frequency of Sleeping Difficulty due to Financial

Stress

n= 816 n= 456


(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

Section 2:

Employees & Financial

Stress

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

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

9 Mean:

* Caution small base size

(N=43*)

21+

16-20 days

11-15 days

6-10 days

1-5 days

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

Section 3:

Employer Perception of Staff

Stress

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

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

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

Date post:	29-Nov-2014
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Financial Stress and Irish Employees MyMoney Report September 2013

Economy & Finance