Part three: Financial health plays a key role in employee engagement
Stress in the workplace is certainly nothing new. But what has evolved are conversations around the essential role employers can play to relieve it. In fact, nine out of 10 employees believe their workplaces have a responsibility to ensure they’re mentally and emotionally well.
A huge part of mental and emotional wellness is the feeling of economic stability and security. Financial health can impact everything from an individual’s self-esteem to their ability to get a good night’s sleep, and is therefore an important factor in other aspects of wellbeing such as physical and mental health.
Here’s a closer look at financial health, and how it intersects with other elements of health to impact employee engagement, productivity and performance.
|
Holistic health: The intersection of employee mental, physical and financial wellbeingExplore the interconnected aspects of employee health and how they affect the performance of individuals and organizations alike. |
What does financial health really mean?
Financial health refers to an individual’s financial stability and economic security. It includes considerations such as:
- Is their income sufficient to cover their needs?
- Are they able to navigate financial challenges?
- Can they progress toward their financial goals?
The Government of Canada identifies money worries as the top source of stress for people in Canada. It also notes that those living with financial stress may struggle with their physical and mental wellbeing.
The connection between financial and mental health
When financial health is lacking, it can also lead to mental health disorders such as depression and anxiety. The TELUS Mental Health Index demonstrates that employees with the lowest mental health scores are also those who have the most trouble managing finances.
The opposite holds true, too. Those who reported managing their financial responsibilities successfully weren’t just better off in terms of mental wellbeing — they actually enjoyed the highest mental health score of the entire cohort. They lead the national average by more than six points, and score more than 30 points higher than those struggling to manage their financial responsibilities.
The connection between financial and physical health
The government’s research found that employees who are mentally stressed, which includes financial worries, report poor overall health at twice the rate of their peers. They’re also four times more likely to suffer from physical ailments such as sleep problems, headaches and other illnesses.
Because financial stress is such an acute form of stress for so many, it can also contribute to the development of chronic conditions such as heart disease and high blood pressure.
How financial health can affect employee engagement
A lack of financial health isn’t just a burden; it’s a distraction. One survey found that one in five employees in Canada were aware of the fact that their financial hardships were taking away from their quality of work, and averaged nearly 30 minutes per day trying to deal with them. Another study reports that workers can lose an average of 11 hours of productivity per week worrying about their financial stressors, while another found that financial stress can cost employers $1,786 per employee in lost productivity and absenteeism.
Naturally, reducing this stress can lead to direct performance improvements. Research has shown that employees who have higher levels of financial security are also more engaged, with more than three quarters agreeing that they enjoy their work. And according to 92 per cent of professional employee counsellors, workers’ health and productivity are positively influenced by feelings of financial stability and economic security.
Facilitating improved financial health for the workforce
Analyzing six decades of data, one study noted that better pay consistently predicted higher rates of employee health and wellbeing. It also led to better outcomes for organizational performance over time due to decreased absenteeism and turnover.
However, salary increases aren’t the only way for employers to help employees feel financially healthy and secure. Benefits Canada notes that solutions such as sponsoring a group savings plan for employees can be helpful, since increasing savings is an aspiration for 77 per cent Canadians.
Financial advising and counselling also provide great advantages to employees in realizing their goals, and is another way to enhance their sense of personal financial health without simply resorting to giving raises.
For employees, the feeling of being in control of their financial possibilities increases their satisfaction and participation levels. In one survey, employees who felt financially healthy rated their happiness levels at 84 per cent compared to their peers, whose happiness levels middled at 55 per cent. They also report higher levels of engagement at 78 per cent, compared to 53 per cent among those with a less positive financial outlook.
Take a holistic approach to employee health with TELUS Health
TELUS Health offers a suite of services that can help support the mental, physical and financial health of employees, with retirement and savings solutions that can help support employees in preserving and growing long-term wealth. TELUS Health EAP includes access to financial assistance support, while TELUS Health Learning supports wellbeing and skill development in a variety of formats to help improve employee performance, productivity and overall organizational effectiveness.
Learn more about the other factors and facets of holistic health, and how TELUS Health supports both employers and employees.