According the the Office for National Statistics’ most recent “UK Measures of National Wellbeing Dashboard” 1 in 5 adults in Great Britain found it fairly or very difficult to manage financially in the past month.
Insights from Nuffield Health’s annual Healthier Nation Index study backs this up, revealing that 38.24 percent of full-time workers and 42.69 percent of part-time workers feel their financial health is worse compared to previous years.
62.56 percent of full-time and 60.81 percent of part-time employees also confessed that the cost of living or a change in personal finances has negatively impacted their mental and physical health in the past 12 months.
Industries with most employees most affected by cost of living
The industries with the most employees most affected by the cost of living include Sales, Media and Marketing, with 75.76 percent of surveyed employees agreeing that the cost of living has negatively impacted mental health.
The Healthcare sector was the second most affected industry, with 65.46 percent of employees reporting their mental health had been impacted by financial strain, and the Architecture, Engineering, and Building industries, with 63.88 percent of workers affected.
What employers can do to help
Nuffield Health’s study highlights the need for managers to rethink how companies are structured and the benefits they offer their employees. Gosia Bowling, National Lead for Emotional Wellbeing at Nuffield Health, shares what managers can promote in the workplace to support financial health and, inevitably, improve mental health…
1. Pay equality
Ensuring that all employees are fairly compensated for their work can help reduce financial stress and support them in being able to afford necessities.
Fair pay can also foster a sense of value and recognition to boost morale and job satisfaction while ensuring salary equality can minimise resentment to create a more harmonious environment.
Collectively, this can make work much more enjoyable and ease financial concerns, reducing mental and physical stress.
2. Equal opportunities for promotion
Managers should establish clear and fair paths for career advancement, as this can motivate employees and increase engagement with work.
Equal promotion opportunities will also increase staff retention and broaden the range of employees in leadership positions for more balanced and effective decision-making.
If workers are aware of opportunities to progress in their careers, they’re more likely to feel secure in their jobs and incomes to lower financial stresses.
3. A transparent workplace culture
Clear communication and transparency in the workplace can build trust between workers and employers and reduce anxiety about responsibilities and job security.
To establish a more open and honest workplace culture, employers should conduct regular 1-1s with their workforce, where employees can discuss financial burdens and their impact on their mental health.
Employers can also set up support groups within their teams, where workers can lean on others who are going through, or have gone through, similar struggles.
However, it’s important to remember that while in-house support is well-received by many, others may require more confidentiality for something as private as their financial situation, or not wish to discuss it with anyone they work with.
That’s why employers should provide signposts to external support available i.e. online advice hubs like Mental Health and Money Advice or online and phone helplines by mental health charities like Mind or Samaritans.
4. Access to support
In addition to talking to employees directly, offering personalised wellbeing services to meet individual needs can ensure they receive the most relevant support.
Businesses can provide support for stress and personal problems through services like Employee Assistance Programs (EAPs) and Cognitive Behavioural Therapy (CBT). EAPS offer direct, confidential contact with experts who can support individuals with emotional distress. CBT can teach techniques such as focusing on what you can control and developing a better relationship with finances.
Plus, inviting an external financial expert to run a training session or live webinar can equip employees with the tools they need to manage their money better and alleviate money-related stress.
Having 24/7, no-strings-attached access to resources can minimise mental health challenges and help employees avoid burnout caused by life stressors like finances.
You can see more findings from Nuffield Health’s latest Healthier Nation Index here.
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