38% employees worldwide cannot pay monthly bills: PwC survey

Workers worldwide are facing worsening financial conditions compared to the previous year, according to a PwC survey which calls upon employers to offer competitive compensation packages and explore customisable benefits to help employees curb the rising cost of living.

Only 38% of respondents reported being able to pay their monthly bills and have money left over, a decrease from 47% in the previous year, finds the survey which gathered responses from nearly 54,000 employees across 46 countries.

Additionally, the proportion of workers left with no surplus funds after paying bills has risen from 10% to 14%. This growing trend underscores the urgency for employers to take action as the cost-of-living crisis increasingly impacts workers' financial well-being.

The survey also reveals a significant rise in the percentage of workers planning to quit their jobs within the next year, increasing to 26% this year from 19% in 2022.

The consulting firm's 2023 Global Workforce Hopes and Fears Survey findings suggest that inflation is having a marked effect on employees' financial well-being, swelling the ranks of workers who are struggling merely to get by.

Against the backdrop of economic uncertainty and high inflation, employees around the globe are feeling the squeeze, with the share of respondents who struggle to pay their bills each month or cannot pay them most of the time increasing to 17% this year from 12% a year ago.

"Given that economic stress has been shown to have knock-on effects on physical and mental health –and, in turn, on workplace retention, productivity, and engagement – employers can't afford to sit tight and wait out the crisis," it says.

It suggests that employers need to take immediate action centring around two key imperatives – reassess compensation and benefits packages, and expand wellness initiatives to include financial health.

Employer firms may consider cost-of-living salary increases for starters as well as offer competitive compensation packages to retain their best people from jumping to a better-paying employer to escape the present financial hardship.

Employees should also be offered employee assistance programmes such as counselling and debt financing to help them cope with the effects of inflation and other shocks, which force employees to take on second jobs.

Some 21% of workers in the survey report working multiple jobs – a proportion that is higher still for people who struggle each month to pay the bills (24%) or cannot pay them most of the time (27%), it reveals.

Although many people with second jobs cite the opportunity to learn new skills as one reason (36%), they are nearly twice as likely to cite the need to earn more money (69%), says the survey which also finds an intriguing relationship between financial stress and employee focus on upskilling.

Industry leaders need to be aware of the financial stress their employees are facing and give them the human energy and attention they need to thrive, the PwC survey report concludes.