04 May 2022 | Annabel Hudson + Zoe Bennfors
Finances, stress, and the impact on mental health
Very few of us go through a day without thinking about our finances – it’s just one of those things that we can’t seem to avoid. Money is one of the biggest causes of stress today, with over half of Britons being stressed about their financial situation amid growing debt struggles.
Money has the potential to have a significant impact on one’s mental health, in both their personal and work lives. Stresses related to money are known to cause heightened anxiety, low-quality sleep, and lack of social interaction, which when observed together are a recipe for poor mental health. This will typically have a knock on effect into people’s work lives, with YouGov stating that 80% of workers believe being stressed about money negatively affects how they perform at work. Despite these alarming statistics, 66% of employees report they would feel uncomfortable informing their boss of their financial stress.
This already-serious problem has been exacerbated by insufficient wages being paid to employees, and by the ongoing cost of living crisis, with more and more people now struggling to get by. It is suggested that people pay 20% of their income into their savings each month, for many, this is unrealistic, and for others we need to think about how much they will then take out by the end of the month just to cover costs. Such situations often force people into their overdrafts or resorting to payday loans with extortionate interest rates, and when this occurs, it is very tricky to resolve the situation.
A great way to address this rapidly growing is issue is through paying people across the country a fair, and equal wage, and that’s why we, here at Pogo Studio, are a Living Wage Employer.
The Power of Living Wage Employers
The real Living Wage is deemed to be a wage which is high enough to maintain a normal standard of living and is based on the cost of living. It is indeed different to minimum wage, as all employers must pay minimum wage, whereas Living Wage is paid voluntary by organisations.
Employers are in a unique position to support their workers with their financial management. Living Wage Employers have the power to drastically improve their employees’ lives. Let’s look at a few reasons why:
Improving employee’s mental health through something as simple as offering them a fair wage is also advantageous to the organisation. According to the Living Wage Foundation, 75% of organisations say offering the Living Wage has increased motivation and retention rates, while a further 58% say it has improvedrelationships between employees and managers.
We here at Pogo Studio pride ourselves on having a positive corporate culture, and are very thankful to have a team who, at least the majority of the time, really do enjoy their roles and want to see the business succeed. Being a Living Wage Employer, highlights the care we have for our colleagues, and this is reciprocated through their hard work and dedication.
Let’s talk money saving tips
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Here at Pogo Studio we are proud to be a Living Wage Employer. If your company would like to find out how you can become the same, click here. Thank you to Zoe Bennfors of Level for sharing her advice and helping write this post in partnership with Pogo Studio.