Letters: Flexible work? Flexible pay.
[Re: Energy bills is Kwarteng’s first priority, then we must claw back our dismal productivity, Sept 12]
Between the first and second quarters of this year, the UK had no productivity growth. Figures released by the Office for National Statistics (ONS) show that between the first three-month period in 2022 and the second, productivity in the UK stagnated.
While output per hour worked in the second quarter was 1.7 per cent higher than pre-pandemic levels, output per worker fell by 0.6 per cent. The government should look at initiatives to improve productivity levels but there should also be an onus on individual businesses.
Businesses should assess why their employees are being less productive. One of course, is the employee’s financial wellbeing. A study published this year, revealed that businesses are suffering a drop in productivity due to employees feeling the burden of financial stress.
The study took evidence from 2,200 employees and found 71 per cent of professionals are experiencing moderate to high levels of stress and feel fatigued as a result.
This backs up previous findings by Close Brothers in the 2019 Financial Wellbeing Index which highlights that 94 per cent of employees worry about money and 77 per cent say this affects their work.
Initiatives like more flexible pay can help with this element. It gives employees greater control over cashflow and allow for more efficient budgeting. It would also reduce the likelihood of people using loans and credit meaning concerns about long-term debt are lessened.
David Brown