How to support employee mental health during cost-of-living crisis

Financial wellbeing and mental health are closely linked. What can employers do to help both?

We are in the middle of an economic and health crisis – the second in two years. People, organisations and public services are under pressure from all angles. For many, the rising cost of living is already unsustainable and the outlook continues to look bleak.

With so many people unable to afford essentials within their weekly food shop, employers need to be aware of the health impact that hunger can have. On top of this, there’s the worry of other expenses that must be cut. Lack of sleep over these worries also affects mental wellness.

All of these factors, in turn, could affect employee concentration and productivity within the workplace – key risks to your organisation’s success.

Here are some of the immediate, practical steps employers should take to help support and manage employees’ mental health during the cost-of-living crisis and beyond.

Financial support

Financial wellbeing and mental health are closely linked. Consider reviewing your organisation’s pay strategy to see if a cost-of-living bonus or targeted financial support for employees is affordable, reducing short-term stress and anxiety. Consideration need to be given to ensure this doesn’t affect those claiming some benefits, such as tax credits.

Understand the workforce

Data analytics will identify and confirm the issues being faced by employees, their scale and impact on the organisation. Knowing what makes your workforce (and your organisation) unique will provide insights, so that you can make more informed decisions about how to support your employees, including those most at risk.

Engage employees about their benefits

Ensuring you have good engagement levels with your benefits helps maximise return on investment. If engagement levels are low, you need to ask yourself if the benefits are easily accessible, in and outside the workplace. Do they best suit demographic needs and are they affordable?

Flexibility to employee needs

Offer flexibility when it comes to benefits choices. For example, provide options for reducing cover or opting out of certain benefits for a while, in return for a cash pot to select other, more suitable, benefits for the individual or even a return in monthly salary. This could free up a pot of money that could help go towards the family essentials such as food or heating.

Create a supportive environment

Encourage your employees to discuss their concerns and worries with their line managers. Train line managers to recognise if an employee is in difficulties and guide them on how to have conversations about mental health. To help with this, make everyone aware of the wide range of free apps available through digital devices that can help, with breathing exercises, mindfulness and meditation.

Alternatively, employee assistance programmes are often provided as well as standard corporate benefits. They provide employee access to a wide range of professionals to help with financial advice or for psychological support and often include a virtual GP service. This gives employees access to on-demand appointments to see a doctor or nurse.

Good communication is a vital ingredient

Finally, ensuring that you communicate with employees and make them feel valued will go a long way towards maintaining a healthy culture and help support their overall wellbeing. This is a two-way process. Your organisation also needs to listen to the feedback and views of employees and take action. Employees need to feel that their voice is heard and that they are working with management, not for them.

Empowering employees to be heard builds an environment which better allows them to feel understood and recognised. Letting them know they are not alone, and that the organisation has a wide range of services, support and advice available will benefit you in the longer term.

To discuss any of these topics in more detail, contact the authors.