Nearly half of the UK workforce suffers from payslip anxiety, according to a new study from Access Paycircle.
With many people across the UK being affected by the cost-of-living crisis, and many others struggling in a cooling employment market, many are feeling the pressure when it comes to their pay. This stress doesn’t just stay in their personal life; it can spread throughout their life, affecting everything from their social life to their professional performance.
What is Payslip Anxiety?
Anxiety is the unpleasant emotion people feel when they have a feeling of dread towards future events. Payslip anxiety is the emotion felt due to concerns and fears related to the payslip. Of those surveyed, 46% stated that a delayed or inaccurate payslip causes feelings of anxiety, and 49% reported feelings of unhappiness.
As shown, the negative feelings aren’t caused by how much they’re paid. Anxiety can begin even before the payslip has been received. Staff can experience stress about the inconsistent timing of their wages, uncertainty about upcoming deductions, or worry about future wages due to ongoing budget changes.
All of these concerns can cause a deterioration in the mental well-being of staff, which can have far-reaching consequences. It is important that UK businesses understand and work with their employees to help limit their staff’s exposure to this anxiety.
Why is it increasing in the UK Workforce?
Workplace stress and anxiety have been a problem throughout the UK workforce in recent years, but they are only showing signs of increasing. Health and Safety Executive’s data showed a rise to 964,000 cases of workers experiencing work-related stress, depression or anxiety in 2024, which is an increase on previous years.
Employees give many different reasons for the stress. Many report excessive workloads, lack of support or poor management. But a growing number are citing cost-of-living pressures as their biggest source of external stress. This, combined with a cooling labour market, is making UK workers feel insecure and uncertain about their future.
These external factors can be made worse by payslip anxiety. The Payroll Anxiety report found that over 21% of those surveyed said they had to borrow money due to errors or delays, putting employees at risk of debt.
How Does it Affect the Workplace?
The effects of payroll anxiety can be felt in both an employee’s private life in many ways, including loss of sleep and having to cancel plans with friends or relatives.
High levels of stress can cause employees to lose motivation and become disengaged at work. The Payroll Anxiety Report showed that 27% of employees have had this experience.
Employees who lack motivation can start missing important deadlines, and in some cases can see an uprise in sudden absences.
But it’s not just productivity that can fall. Over 11% of those surveyed said they had wanted to leave a company due to payroll problems.
What Employers Can Do
An employer has limited options for reducing or preventing payroll anxiety among employees, especially when it comes to changing pay rates and other forms of compensation.
However, by boosting payroll transparency, a company can help employees understand their payslips. This clarity and information can help remove some uncertainty an individual might have.
Additionally, communication is important. By communicating changes, such as sudden or unexpected changes, holiday hour shifts, and pay rate changes, employees will have more certainty over what they will see. Doing this proactively will also ensure employees have the chance to ask questions before their payslip is given.
Another step is offering their employees support for their financial well-being. Although giving more money isn’t always an option, their staff can also benefit from access to self-service guidance resources and employee assistance programmes for those who need them.
