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 help relieve it. In fact, half of all employees across generations in Singapore rate the commitment their employers make to improving their overall wellbeing and health as above average.
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. A study from Blackbox Research found that one in three Southeast Asians identify money problems as the issue that has the greatest influence on their mental wellbeing, with work pressures and career struggles ranking almost as high.
Economic strain significantly influences mental wellness in Southeast Asia, with a variety of factors including cost of living, inflation, shifting employment conditions and lack of financial stability all playing key roles.
Here’s a closer look at financial health, and how it intersects with other elements of health to impact employee engagement, productivity and performance.
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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. |
What does financial health really mean?
Financial health or wellbeing is the extent to which a person or family can smoothly manage their current financial obligations and face their financial future with confidence.
Yet most employees in Asia are burned out, with 83 per cent reporting experiencing it over the past year and citing financial strain as the top factor. Workers in the region spend six hours of work time each month, on average, worrying about their finances.
The connection between financial and mental health
When financial health is lacking, it can also lead to mental health issues such as depression and anxiety. One survey found that financial security was ranked as the second most significant factor to impact mental health across six Asian countries and territories. And the 2023 Asia Mental Health Index Report indicates that addressing the level of financial risk that employees face is an essential part of efforts to help improve employee mental health and wellbeing, since high mental health risk and financial insecurity are closely linked.
The report notes that this is particularly important in the current economic context in which even large companies struggle against rising costs, making large salary increases and financial incentives difficult or impossible to offer.
Furthermore, a recent study surveying Gen Z and Millennial workers in Hong Kong and Singapore established a cyclical relationship between high levels of financial and personal wellbeing. Specifically, 85 per cent of Singaporean respondents said that being financially prepared helps them to recover from setbacks and challenges more easily, with 84 per cent saying that this kind of cultivated resilience encourages them to continuously improve their financial preparedness. In other words, higher self-esteem and financial preparedness support and fuel each other.
The connection between financial and physical health
Physical, mental and financial wellbeing are strongly correlated, and improving one factor can have a far-reaching impact across the wellbeing spectrum. For example, people who are physically fit are more likely to have better financial fitness and above-average mental health; similarly, people with higher mental and financial fitness are also more likely to have better health in the other two areas.
How financial health can affect employee engagement
A lack of financial health isn’t just a burden; it’s a distraction. Financial anxiety can disrupt sleep, leading to lower energy, poor mood and increased vulnerability to absenteeism, illness and burnout. When employees feel unsupported, they may seek other opportunities, ultimately reducing individual motivation and harming overall productivity and retention.
The research from Aon and TELUS Health, linked above, found that 34 per cent of workers in Asia lack emergency savings and report that their financial wellbeing significantly affects their mental health. This research also shows that workers without emergency savings are 60 per cent more likely to have problems concentrating at work.
Facilitating improved financial health for the workforce
Forty-nine per cent of employees in the APAC region say that their employers understand how financial stress affects work performance. Despite this, 58 per cent say that their workplace is not doing enough to support the rising cost of living and only 40 per cent feel comfortable talking about their financial concerns with their manager — signs that significant work still needs to be done.
When workers feel that their financial concerns are being considered, they’re more likely to stay with their organisation. One survey found that 62 per cent of APAC employees agreed that financial education enhances their commitment to their employer.
And according to the Gallup Organization’s 2024 World Happiness Report, support for financial literacy should be a key part of HR’s strategy, particularly as they offer support for younger workers. HR can offer budgeting tools, financial education and resources for relieving financial stress to support their employees.
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. TELUS Health EAP includes access to financial assistance to help support employees and improve 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.