Australian workplaces report some of the highest stress levels in the world. This has triggered a discussion around the essential role employers can play in relieving workplace stress. In fact, 91 per cent of Australian employees believe that mental health in the workplace is important.
A huge part of mental and emotional wellbeing 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.
One study found that 56 per cent Australians believe financial health is a factor in their overall health, while six in 10 are thinking more about their financial outlook than they did a year ago. Respondents recognised the link between mental, physical and financial health, with 58 per cent saying their financial health impacts their mental wellbeing and 47 per cent indicating it impacts their physical wellbeing. Nearly all Australians (90 per cent ) with poor financial health said that financial stress negatively impacts their mental wellbeing.
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 organisations alike. |
Financial health refers to a person’s financial state over time — from short-term daily financial obligations and resilience against shocks to the ability to reach long-term goals and feel secure and in control of their finances.
Yet 66 per cent of Australians feel mildly, moderately or severely financially stressed, and 70 per cent believe that health and mental wellbeing are among the aspects of life that good financial wellbeing impacts most.
When financial health is lacking, it can also lead to mental health disorders such as depression and anxiety. As of 2024, financial risk for Australian employees had been one of the lowest subscores in the TELUS Mental Health Index for two years.
The opposite holds true, too. The highest scores for mental health and financial wellbeing in late 2023 were observed among the 16 per cent of people who were not experiencing financial concerns.
Financial stress is associated with high-risk behaviours and impaired decision-making. Worrying about money can negatively affect everyday decisions. And while some decisions we make under stress have minor consequences, others may lead to poor physical health or injury.
All kinds of stress can manifest in physical ways, including financial stress. Body aches, exhaustion, insomnia and muscle tension — as well as more serious physical health conditions — are all linked to financial stress.
A lack of financial health isn’t just a burden; it’s a distraction. In fact, 88 per cent of Australians who experience moderate or severe financial stress say their finances affect their productivity at work. These financial stressors take a significant toll, costing the Australian economy an estimated AU$15 billion annually, and another AU$10 billion each year in direct costs to employers caused by absenteeism and presenteeism.
Naturally, reducing this stress can lead to direct performance improvements. Financially secure employees are more likely to stay focused, motivated and engaged in their work, leading to increased productivity and better job performance. When Australians consider joining a new organisation, the most popular primary considerations for them, identified by 26 per cent, are remuneration, rewards and benefits.
Analysing 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 organisational 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. Employee Assistance Programs (EAPs) can include financial counselling and support. Employers that offer access to professional financial advisors can provide tailored guidance to their staff, helping them navigate their specific financial situation and reduce anxiety around money. This is particularly important, as more than a quarter of Australians are concerned they won’t be able to retire.
TELUS Health offers a suite of services that can help support the mental, physical and financial health of employees. 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 organisational effectiveness.
Learn more about the other factors and facets of holistic health, and how TELUS Health supports both employers and employees.