Majority of workers confirm that December’s early pay date results in financial difficulty in January
09 December 2019
In a survey conducted by financial technology company, Hastee, 82% or eight in ten UK workers admitted that the early pay date that is offered by many employers in December to help alleviate some of the pressures of Christmas can have a detrimental effect later. This is because they struggle to make ends meet in January due to the extended duration between the two pay dates.
1,000 employees across the UK and Ireland took part in the research and it also highlighted that 78% of people have to use credit of some form in the new year as a result of frivolous spending over the Christmas holiday period. 47% utilised payday loans, credit cards and overdrafts which are high-interest financial products and can end up costing way more than the initial amount used.
55% of respondents confirmed that they worked overtime to generate extra funds at this time of year and 40% even reported that they had to work in more than one job in preparation for the festive period. The results of the survey also revealed the darker side of Christmas as six in ten employees explained how they experience Christmas-related financial stress which then spills over to affect their performance in the workplace.
35% have even said that Christmas forces them to spend and live beyond their means, leading to an inability to pay their bills with 50% having to sacrifice home comforts such as heating and electricity.
The chief executive officer at Hastee, James Herbet said:
“What’s supposed to be a time of celebration has become a stressful ordeal for workers with many feeling forced to borrow. This negatively impacts workplace productivity, and this impact can last for months as workers struggle to catch up with their finances.
Wellbeing solutions that increase liquidity by giving workers access to their earnings on demand are readily available for employers to implement at zero cost. Employers benefit from improved productivity, and workers get a fair chance to enjoy a happy Christmas. These solutions can also help businesses align themselves with destination employers that attract and retain talent more effectively with the range of benefits they offer.”
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