Support for financial wellbeing is also support for mental health
Financial wellbeing and mental health are closely linked by one key element: stress.
When employees are faced with external challenges such as rising inflation, fluctuating energy prices and increased housing costs, maintaining their lives outside of work can be even more intense, which naturally impacts mental health.
Given that mental health has been identified as the main reason for employee absenteeism, employers and HR teams have an important opportunity to put supportive plans in place.
How financial issues can impact mental health
According to mental health charity Mind, there are several ways that money can affect a person’s mental health. Specifically, worrying about finances can lead to sleep problems and feelings of anxiety or panic when dealing with financial admin.
Money worries can also make people feel alone or cut off from others. This can impact their social life and put a strain on relationships, making it harder to feel connected and supported.
On top of that, there’s the issue of potentially being unable to afford the things that keep a person well, like medication, therapy and everyday living costs such as food and housing. Financial stability plays a key role in supporting mental wellbeing, and without it, the effects can be felt at home and work.
What this means for organisations
When stressful external factors like poor mental health or financial struggles affect employees, businesses will likely feel their effect as well.
Boostworks’ multi-generational research found that 49% of Millennials say that financial worries affect their focus at work. On top of that, there’s growing evidence to show that when employees’ mental wellbeing is affected by things outside of work, it can lead to higher employee turnover and lower morale across the workplace.
When employees are struggling financially, engagement is another part of the business that really feels the impact.
Understandably, when employees are dealing with financial stress outside of work, their priorities may shift to make ends meet as best they can. In a business setting, this can result in people not engaging with the wider company culture, like avoiding work social events to focus on other priorities.
How HR teams and employers can help
So, in unpredictable and difficult financial times, how can you support your employees’ financial wellbeing?
The key lies in providing support that is simple, practical and easy to access so individuals can easily fit it around their everyday life, and feel the benefit.
- Accessible, confidential support: Services like employee assistance programmes (EAPs) provide a safe space for employees to talk through financial concerns alongside other personal challenges. Having access to someone impartial helps people feel supported and less overwhelmed, particularly when issues start to build up.
- Financial education and guidance: Providing simple, easy-to-understand resources around budgeting, saving and financial planning will help employees feel more confident in managing their finances. When people understand their options and feel informed, it becomes easier to make decisions and reduce anxiety.
- Everyday savings: For many employees, the biggest impact comes from support they can benefit from straight away. Discount schemes and cashback on everyday spending such as food, household essentials and utilities help people stretch their income further, easing financial pressure in a practical and immediate way. Access to savings on non-essentials like travel and experiences also plays an important role in supporting mental health and overall wellbeing. These types of discounts give people the opportunity to get more enjoyment out of life outside of work, which will have a meaningful impact long-term.
- Support with bigger financial commitments: Salary sacrifice schemes make larger purchases or long-term planning more manageable by spreading costs over time and offering savings on National Insurance. From electric cars and bicycles to the latest technology, schemes like this give employees a secure, reliable route to get the products they want to make their overall quality of life better.
Summary
Financial wellbeing and mental health aren’t separate challenges – they’re closely connected. When people struggle with the financial side of day-to-day life, it naturally starts to affect how they feel, both at home and at work.
By taking practical steps to support employees financially, businesses are also supporting people’s morale, productivity and overall engagement.
Supplied by REBA Associate Member, Boostworks
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