A recent survey by Reed has uncovered a concerning trend among Scottish workers: despite putting in extra hours, many are finding it difficult to set money aside for savings.
According to the survey, 45% of Scottish employees report working overtime, yet 39% still struggle to save money. This highlights the growing disconnect between work efforts and financial stability in the face of rising living costs.
When asked why, nearly two thirds (62%) said it was because it hadn’t risen with the cost of living, and 43% said it was because they felt they did so much more than required for their job role.
Of those working overtime, 47% said it’s necessary because they have more work to do than working hours in their day, and 42% say it’s because their job role and responsibilities require it.
When asked if they’re compensated for the extra hours they work, only a quarter of workers in Scotland say they’re paid overtime, 30% said they can accrue their hours, while 34% said they aren’t compensated in any way.
This unpaid labour represents a significant loss for workers, with the average UK employee potentially seeing a 10% salary increase if their overtime were compensated.
Gillian Dolan, regional director at Reed, said: “Clocking extra hours could be a sign of people wanting to prove their worth to avoid their roles being made redundant if businesses are having to make cuts, as they prepare for the National Insurance contribution increase.
“The employment market is tight and, with nearly a quarter of Scotland’s population classed as economically inactive, many employees may feel they need to pick up the slack or work extra hours to account for staff shortages.”
“However, the results show that a third of Scots aren’t compensated for this extra time, so they’ll still be struggling to meet their financial goals.
“It’s clear that Scotland is a country of hard-working people, illustrated in their commitment to their jobs and the extra hours they put in, but it’s important for workers to ensure they don’t give themselves additional stress or burnout.”
The findings underscore the need for a balanced approach to work and compensation, especially in light of the ongoing cost of living crisis affecting households across Scotland and the UK.
