Over half of UK finance leaders work at least six additional hours per month, without being contracted.
According to a new study commissioned by Iplicit, the research collected insights from more than 1,000 mid-market finance executives on their current accounting function.
Most finance leaders are admitting to being overworked. 93% of finance leaders say they work longer hours than their contract stipulates. Nearly a third (32%), claim that these extra hours add up to an additional day per month.
The report also highlights several challenges facing the sector in terms of wellbeing. Four out of five finance leaders (82%) say that they are stressed at work. Of those, 40% feel stressed all the time, and 42% feel stressed frequently.
The stress drivers in the sector
The pressure of budget constraints and talent shortages is affecting finance leaders. Stress is most often caused by a lack of resources in their organisation.
The second most common reason for this is the time spent on creating reports, such as year-end accounting or audits (24%) and managing budget constraints in the organisation.
The other sources of stress on a daily basis are team management (24%) fraud and security threats (20%), and reporting to the senior leadership or board (17%).
Finance leaders believe that employers have a major responsibility to protect their employees from stress and create a more positive working environment.
Becky Glover is Finance Director at Yutree Insurance and a Board Member. She adds, “Employers have the ultimate responsibility to ensure staff are happy and their wellbeing doesn’t suffer because of their work load. This, in my opinion, boils down to open communication. Unfortunately, there’s still a stigma attached to discussing stress at work. It is especially important for senior managers who feel that they are responsible for taking the brunt for the team. The new generation of workers is more open to discussing stress, and they are aware of the negative consequences.
The Labour Right to Switch Off is part of the Employment Rights Bill, which will be in effect by 2026. It aims to improve conditions and work-life balance for UK workers. Finance leaders do not see this as sufficient.
Glover says that stress is not always caused by working overtime and long hours. It is usually the result of day-to-day financial pressures.
The younger generation is used to using technology in their daily lives. If a workplace doesn’t embrace tech, it will fail to attract, retain and upskill these candidates. If a workplace doesn’t embrace technology, it won’t be able to attract, retain, and upskill the younger generation.
Olivia McMillan is Chief Operations Officer of iplicit. She adds that “while it’s concerning to witness high levels stress affecting UK finance leaders, the finance transformation offers a hope for the future.” According to our research, some SMEs are taking up to four weeks to complete their month-end accounts, largely due outdated technology. Finance leaders can regain valuable time lost every month due to manual processes or spreadsheets by adopting solutions that automate key processes.
The promise of modern, new systems and improved morale among finance teams will make it easier for businesses recruit the next generation finance leaders. They can then shift from being reactive to strategic enablers and focus on other key areas like environmental, social, and governance (ESG) as well as future proofing their business.
The original HR news article Wellbeing is a major challenge for UK’s finance sector. 40% of employees feel stressed the majority of the time.
