Nuffield Health’s annual Healthier Nation Index survey has highlighted 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.
According to Mind, the inability to afford day-to-day necessities like food, fuel, and housing costs can lead to mental health problems.
Women were found to be more likely to have worse financial health, with 64.38 percent of female respondents agreeing that the cost of living has had an impact on their mental health compared to 53.40 percent of men.
However, according to responses from male workers, feelings about the cost of living and its impact on mental health haven’t improved in the last year for them either. In 2023’s survey, 50.65 percent of male respondents agreed that cost of living had an impact on their mental wellbeing, but this year this has increased to 53.4 percent.
Unsurprisingly, salary was also a cause of financial concerns, as the lower the salary, the higher the percentage of worse net financial health. 66.17 percent of those earning less than £15,000 were impacted, followed by those earning between £15,001 and £25,000, with 64.16 percent feeling concerned.
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.
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.
#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.
#4 Access to 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.
Joanne is the editor for Workplace Wellbeing Professional and has a keen interest in promoting the safety and wellbeing of the global workforce. After earning a bachelor's degree in English literature and media studies, she taught English in China and Vietnam for two years. Before joining Work Well Pro, Joanne worked as a marketing coordinator for luxury property, where her responsibilities included blog writing, photography, and video creation.