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
%

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
EmployeesGeneral 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
9Mean:
* 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

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