The link between emotional and financial wellbeing – and why it matters in the workplace
It’s well known that emotional and financial wellbeing are intrinsically linked.
Being in a poor financial situation can cause stress, anxiety and contribute to existing mental health issues, impacting emotional wellbeing. At the same time, poor mental health can hinder an individual’s ability to effectively manage their finances, impacting financial wellbeing.
To delve a little deeper, UK mental health charity Mind acknowledges the various stressors that money can put on our emotional wellbeing. For example, for those struggling mentally, spending money can be used as a device to make themselves feel better, even if they aren’t in the best position to do so. This may result in momentary happiness, but the long-term, more serious impact of low funds or debt can cause a general deterioration in mental health.
When it comes to financial wellbeing, according to the Money and Mental Health Policy Institute, people with mental health problems are three times more likely to be in debt. At the same time, Mind suggests that individuals with poor mental health may lose motivation to keep on top of their finances.
In essence, emotional and financial wellbeing are connected. But why does this matter in the workplace?
To look at emotional wellbeing in a wider sense, approximately 1 in 4 people in the UK experience a mental health problem each year. That is to say, millions of people are struggling or have struggled with their emotional wellbeing and it should, alongside wellbeing overall, be an area of high importance in the workplace.
People’s daily struggles and concerns don’t just cease to exist when they start their shift at work, so you, as a business, should be providing adequate support.
Your employees are so much more than cogs in the business machine, they are an individual and their wellbeing, be it emotional, financial or physical, should be a top priority. Companies need to show compassion and advocate an open and supportive culture so that every member of staff can feel comfortable reaching out for help whenever they need it.
Andy Caldicott, Managing Director at peoplevalue, commented:
“Your employees should feel like their colleagues, at every level, are part of an extended family – a network of people that genuinely care about their wellbeing and are on hand to provide support. Whether it’s having a quiet chat over a cup of tea or supplying someone with key resources to help them manage whatever issue they may be facing, a strong support system is essential. Caring for your employees is more important than anything else.”
Considering the relationship between emotional and financial wellbeing, businesses should have an all-inclusive approach to their wellbeing strategy so that employees get a comprehensive level of support.
By humanising your company environment, you will begin to realise the true importance of employee wellbeing. In fact, addressing mental health and financial wellbeing effectively can even benefit your company as a whole. Not only will you breed a strong culture of support, you will also drive productivity as research has demonstrated the direct effect mental health has on employee performance.
In summary, happy employees do a better job. So, there is an added bonus to offering genuine employee wellbeing support.
To find out how we can help you care for your employees why not give us a call…