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How financial education benefits can ease anxiety in the workforce
Nine per cent of the US population live with a diagnosed anxiety disorder, according to a survey from the Anxiety Disorders Association of America. Of that 9%, a staggering 40% experience anxiety in their daily lives.
There are many reasons why people feel anxious at work. However there is one consistent issue that comes up time and time again – money worries. Recent research by nudge found:
- 17% of people feel overwhelmed by their debts
- 36% of people don’t believe their employer is interested in supporting their financial wellbeing
- 48% of people feel anxious about their financial situation
Let’s look at the top three ways financial anxiety could be affecting your employees and how financial education can help.
Financial anxiety and health
According to research by Barnett Waddington, 60% of employees feel anxious, depressed, or stressed about their finances. Anxiety can open the floodgates to other health issues such as heart problems, digestive issues, tiredness and dizziness. Financial anxiety can affect sleep, with a knock-on affect on work performance and overall health.
Young employees are hit hardest
The cost-of-living crisis affects everyone, but not equally. A report by Aviva showed that younger people (aged 25 to 34) are more likely to bring up financial concerns compared with older counterparts.
Further, nudge’s research found that 58% of 25 to 34-year-olds feel anxious about their financial situation. However, when they’re offered financial education, the number falls to 46%.
Considering that financial education reduces anxiety, employers have the opportunity to engage their younger employees. As it stands, 22% of workers under the age of 25 are less likely to feel connected to their employers. Once the younger workforce feels they’re being supported with financial education, it’s likely their anxiety about money will improve and they’ll be more committed and connected at work.
Poor morale and company culture
When stress hacks away at employee morale, company culture takes a hit. What’s more, people experiencing workplace anxiety are less likely to be satisfied at work and more likely to leave.
According to Morgan Stanley, employees who suffer financial stress are nine times more likely to have troubled relationships with co-workers. This can result in work conflict that can lead to churn and increased workloads for remaining employees.
Research shows that employees feel much more engaged at work when they feel their financial health is supported. In fact, 40% of employees who receive financial education feel that their relationship with their employer is strong and goes beyond being purely transactional.
Financial education
The solution is financial education that’s relevant, timely and empowering.
Poor health is a significant cost to an organisation. According to the Health and Safety Executive, work-related stress, anxiety, or depression account for more than half of all work-related sickness absence.
Financial education is proven to help employees manage anxiety about money. In fact, 59% of employees who receive financial education feel more hopeful about their finances. With financial education, employers are empowering their staff to take control of their finances and their lives. Control allows them to feel less anxious, more financially secure and connected at work.
It’s in the employers’ hands to ease financial anxiety and make the working world a happier, healthier place. To learn more about how to support your employees’ mental health with financial education contact nudge.
Supplied by REBA Associate Member, Nudge
A leading financial wellbeing benefit using behavioural science & technology to help employees.
