A fifth of the UK workforce (19%) plan to leave their current job for a role offering a higher salary if the cost-of-living crisis continues or gets worse next year, according to a new study.
Following record inflation levels, 43% of people in employment say managing their money is their biggest cause of financial stress, found The Workplace Today report*, which looks at the current workplace wellbeing challenges for employers and employees.
Millennials, those currently aged 26 – 41, were most likely to plan to find a new, higher-paying job, with 21% saying they would do so in the next 12 months. An additional quarter (24%) of Millennials said they would start a side hustle or take a second job.
One in five (20%) Gen Zs, those currently aged 18 – 25, were also considering finding a new job to cope with the cost of living, however, just 14% were willing to start a side hustle, compared to 56% of Millennials and Boomers.
More than a quarter (29%) of workers say paying off debt is their main cause of anxiety, while 27% say not having an emergency fund has been their number one worry.
Rachel Harte, Head of Financial Planning at Claro Wellbeing, says: “With so much uncertainty, and costs rising so rapidly, financial resilience is more important than ever to both employees and the organisations they work for.
“When times get tough, the first thing many employees will do is start looking for a higher-paid job, and employers will be unable to increase the salaries of existing employees to match offers from those that are tempting them away. Stability isn’t guaranteed for anyone.”
Those on higher salaries are not immune from anxiety caused by soaring costs. Some 41% of those on salaries above £150,000 say managing their money during the cost-of-living crisis is the most significant cause of financial stress, compared to 42% of those earning between £40,000 and £49,000 a year or less.
Almost one in five (19%) workers say they’re planning to learn more about money management if the cost-of-living crisis continues or gets worse. Gen Z were most likely to increase their financial understanding – 25% versus 19% of Millennials, 17% of Gen X and 20% of Boomers.
Rachel Harte, continued: “There are many reasons for a lack of financial resilience. This includes not having the confidence to manage your money, which can leave many feeling overwhelmed. These reasons are not exclusive to age group or stage of life either.
“Introducing a financial wellbeing programme which includes access to a financial expert and 24/7 on-demand access to financial education resources and budgeting tools is one way of supporting staff with their finances throughout their career. This can also help boost their resilience by giving them the necessary tools to make smarter financial decisions every day.”
*report from Claro Wellbeing