Tackling Mental Health With Financial Wellness

Nurturing employee well-being

Today’s workers are facing immense levels of stress. The American Psychological Association (APA) has found that 27% of American adults report feeling so stressed they often cannot function. It was also noted that two-thirds of those surveyed who were employed indicated that their job was a stressor.  
 
Mental and physical health are important components of overall health. In the same way that a broken leg can vastly affect an employee’s ability to work, stress and other mental health conditions can be the cause of anything from poor productivity to full-on burnout.  

 

How Employers Can Help  

A 2021 survey by the APA reported that a large majority of employees believe certain actions from their employers would help their mental health. These can begin with simple, everyday actions like staying aware of the personal well-being of employees to understand when they are struggling. Employers can also identify and adjust, where possible, factors that are making it difficult for employees to work – by switching around schedules or reassigning specific tasks.  
  
Additionally, there are a number of coping and resiliency resources available that employers can provide to their staff. These range from counseling programs to all-important financial wellness resources.  

Improving Financial Well-Being  

Financial wellness can have positive effects on mental well-being. Gaining financial knowledge and security can lead to better opportunities to enjoy life and plan for the future.  
 
However, for many people, this kind of security is still a dream. Currently, nearly two-thirds of Americans are living paycheck-to-paycheck, and almost half struggle to cover a $400 emergency expense. With so many workers one payroll disruption away from disaster, there has never been such a pressing need for workers to be provided access to tools that can help them improve their financial standing.  
 
This may include tools that can help people to create effective financial plans for both short-term goals, such as reducing expenses or establishing an emergency fund, and long-term goals like sending their kids to college or paying off a mortgage. But according to a study by CNBC+, over half of adults in the United States are not financially literate, meaning they’ve never had access to the right tools or knowledge to budget or invest.  
 
While many employee benefits packages include perks like 401(k) matching or health insurance that can help create some level of financial security, employers should also be aiming to provide financial wellness tools. These include low-cost loans, credit monitoring, financial coaching, and easy saving options, as well as educational materials that can improve financial literacy.  

Holding Onto Staff 

Because of the large percentage of Americans with a need for financial wellness tools, workplaces that offer financial wellness benefits to their employees can set themselves apart from the competition. And with people looking for jobs that better align with their values and seeking equality and inclusion, employers should be taking any opportunity they have to both attract and retain talent.  
 
Some employers believe that the financial cost would be too prohibitive to add financial wellness benefits for their employees. Nevertheless, many of these tools are available without additional expenses for the employer, meaning they can offer all employees access to low-cost credit, financial safety nets, and smart alternatives to credit cards and cash advances. 
 
American workers are living under an incredible amount of pressure, and the effects this has on their personal and work lives are tangible. Last year, the majority of the 550 million lost working days in the United States from absenteeism were stress-related, and twenty percent of last-minute no-shows are directly caused by job stress. That’s billions of dollars in lost wages, profit, and productivity that may have been avoided if employers offered their employees more comprehensive mental health support.  
 
Employers have a unique opportunity to support their employees through financial wellness offerings. Offering financial wellness tools, including low-cost loans, financial coaching, credit monitoring, savings accounts, and educational resources, can have a positive effect on employees' mental health and overall well-being. As the workforce continues to change, employers who prioritize the mental health and financial wellness of their staff will set themselves apart and begin creating a more productive and loyal workforce.  

Einat Steklov is the Founder of Kashable and Coral Capital Solutions.