How does an employees financial wellbeing affect their work and mental health?
An employee’s financial wellbeing can have a significant impact on their work. When an employee is worried about money, it can be hard for them to focus on their job, and it can be difficult for them to be productive. Financial stress can lead to a host of work-related problems, including absenteeism, decreased job performance, and high turnover.
One of the most significant ways that an employee’s financial wellbeing affects their work is by causing stress. Stress is a natural response to a perceived threat, and when an employee is worried about money, their brain views this as a threat. This can lead to physical and mental symptoms, such as headaches, fatigue, and difficulty sleeping, which can negatively impact their job performance and make it difficult to complete tasks. Stress can also exacerbate existing mental health conditions, such as depression and anxiety, making it even harder for employees to focus on their work.
Another way that financial wellbeing affects mental health is by causing isolation. When you are struggling financially, you may withdraw from social activities and relationships. This can lead to feelings of loneliness and isolation, which can exacerbate mental health problems.
Another way that an employee’s financial wellbeing affects their work is by causing absenteeism. When an employee is struggling financially, they may take time off work to deal with financial issues, such as going to a job interview or meeting with a financial advisor. This can lead to decreased productivity and can cause problems for their employer.
Financial insecurity can also affect an employee’s work. When an employee is struggling to make ends meet, they may feel insecure about their future and their ability to meet their basic needs. This can lead to feelings of hopelessness and helplessness, which can affect their job performance and make it difficult for them to focus on their work.
In addition, financial dependency can also affect an employee’s work. When an employee is dependent on others for financial support, they may feel ashamed and embarrassed, which can lead to feelings of worthlessness and low self-esteem. This can be particularly difficult for employees who have been independent in the past, and can negatively impact their job performance and attitude towards work.
How can employers help?
To improve an employee’s financial wellbeing and work performance, employers can offer financial education and resources. This can include seminars on budgeting and saving such as those offered by Finsbury Wealth, financial counseling, and access to financial advisors. Employers can also offer benefits such as retirement plans and access to gratuity management schemes to help employees plan for their financial future.
On an individual basis, one of the most important things you can do to improve your financial wellbeing and your mental health is to create a budget. A budget can help you see where your money is going and where you can make changes. It can also help you set financial goals and work towards them.
Another important step is to create an emergency fund. An emergency fund is a savings account that you use for unexpected expenses, such as car repairs or medical bills. It can help you feel more secure and less stressed when unexpected expenses arise. Typically an emergency fund should contain 3-6 months of basic living expenses.
You can also improve your financial wellbeing and your mental health by reducing debt. Debt can be overwhelming and can lead to feelings of hopelessness. By reducing debt, you can improve your financial situation and reduce stress.
In conclusion, an employee’s financial wellbeing can have a significant impact on their work. Financial stress can lead to decreased productivity, absenteeism, and high turnover. Employers can help improve their employees’ financial wellbeing by offering financial education and resources, and offering benefits that can help employees plan for their financial future. By promoting financial wellbeing, employers can help to create a more productive and engaged workforce. Finsbury Wealth offers businesses 60 minute complimentary in person and on the financial wellbeing seminars across a variety of topics.