The Impact of Financial Wellbeing on Workplace Mental Health

As we celebrate World Mental Health Day 2024, the focus on workplace mental health highlights the importance of ensuring the wellbeing of employees. While much of the conversation around mental health often focuses on emotional and physical wellbeing, there is a critical element that sometimes gets overlooked: financial wellbeing.

With financial stress being a leading cause of anxiety and mental health challenges, it’s clear that financial wellbeing should be a priority in every workplace. 

The Connection Between Financial Stress and Mental Health 

Financial stress is a significant factor in declining mental health. Research shows that financial challenges like debt, housing affordability, and lack of savings have a direct impact on an individual’s wellbeing. These challenges manifest in several ways: 

• Overwhelming debt: A study from the Royal College of Psychiatrists found that 86% of people with debt reported feeling anxious, and half experienced symptoms of depression. The mental load of juggling multiple payments—credit cards, personal loans, or medical bills—can create chronic stress, which eventually spills over into an employee's professional life. 

  
  

• Housing affordability: With UK house prices rising 4.1% in the 12 months leading up to March 2023 (and an overall increase of up to 53% over the past decade), homeownership is increasingly out of reach for many. Struggling to save for a deposit or keep up with rising rental costs can result in feelings of hopelessness, especially for employees on lower wages or those supporting families. 

  
  

• Lack of savings: StepChange, a UK debt charity, reports that millions of households are one unexpected expense away from financial crisis. The absence of an emergency fund leaves employees vulnerable to sudden changes—whether it's an emergency car repair or unexpected medical costs. This insecurity can heighten stress levels, leading to distractions and lowered productivity at work. 

  
  

Addressing these specific financial challenges is crucial for supporting employees' mental health. Mind, the mental health charity, has consistently reported that financial distress is one of the key factors contributing to workplace anxiety, absenteeism, and presenteeism. 

Why Financial Wellbeing Should Be a Workplace Priority 

Supporting financial wellbeing is more than a perk—it’s an essential component of a healthy workplace. When employees feel in control of their finances, they are less likely to experience chronic stress, anxiety, or depression. In fact, companies that invest in their employees’ financial wellbeing report better outcomes in terms of engagement, productivity, and retention. 

Here’s why: 

• Reduced financial stress leads to fewer distractions at work and greater focus on tasks. 

  
  

• Financial security fosters a sense of stability, contributing to better mental health and happiness. 

  
  

• Confidence in managing personal finances can empower employees to make informed decisions, reducing long-term stress. 

  
  

The Role of Employers: Creating a Culture of Support 

Employers must take a proactive approach to promoting financial wellbeing in their organisations. A healthy company culture that prioritises financial wellbeing doesn’t just rely on isolated initiatives—it is embedded in leadership, policies, and everyday interactions. Here are specific strategies leaders can implement to build this culture: 

• Leadership training on financial wellbeing: Educating managers and leadership teams on how to identify signs of financial stress in their employees can help them offer timely support. Providing resources or directing employees to expert advice can ease financial anxieties before they escalate into larger problems. 

  
  

• Normalising financial conversations: Employers can set a precedent by encouraging open discussions about financial challenges without stigma. This can be done through workshops, small team meetings, or confidential 1:1 sessions with financial wellbeing experts, where employees can seek help without fear of judgment. 

  
  

• Flexible benefits and financial wellbeing tools: Offering benefits such as salary sacrifice schemes, emergency savings options, or other employer-assisted support can directly alleviate financial pressures. Companies can also partner with third-party financial services to give employees access to broader resources. 

A supportive company culture combined with leadership initiatives empowers employees to tackle financial challenges confidently. This trust-driven environment leads to higher job satisfaction, better mental health outcomes, and stronger overall business performance. 

How Prestige Private Finance Supports Workplace Mental Health 

At Prestige Private Finance, we specialise in offering mortgage advice to support employees in managing one of the most significant financial commitments they will face. Our Mortgage Surgeries and Lunch & Learn sessions offer expert guidance on topics such as navigating mortgage applications, remortgaging options, and understanding the mortgage market.

Importantly, our services are offered at no cost to businesses—this is part of our commitment to Corporate Social Responsibility (CSR), ensuring that companies can support their employees’ financial wellbeing without any added financial burden. 

Inclusivity and Accessibility in Financial Wellbeing 

At Prestige Private Finance, we are committed to ensuring that our services are accessible to all employees, regardless of their financial background or experience. We believe that financial wellbeing support should be: 

• Inclusive: Financial stress affects employees at all levels of an organisation, from entry-level staff to executives. Our programs are designed to give tailored advice without assuming prior financial knowledge. 

  
  

• Sensitive: We are conscious of the diverse financial situations employees face and avoid one-size-fits-all approaches. Whether employees are first-time buyers or navigating complex financial portfolios, our advice meets them where they are. 

  
  

• Non-judgmental: We understand that financial difficulties are common and often unpredictable. Our approach is to provide support without bias, ensuring employees feel safe and empowered to seek help. 

  
  

Tips for Employers to Improve Employee Wellbeing 

Employers have a crucial role in promoting financial wellbeing as part of their workplace mental health strategy. Here are some actionable steps companies can take: 

• Introduce Financial Wellbeing Programs: Offering financial education workshops, such as our Mortgage Surgeries, can help employees better understand their finances and reduce stress. 

  
  

• Create a Supportive Environment: Encourage open conversations about financial wellbeing and provide resources to help employees manage financial challenges. 

  
  

• Partner with Experts: Collaborating with organisations like Prestige Private Finance, who offer mortgage advice services at no cost to businesses, and connecting with other financial experts can provide comprehensive support to your employees. 

  
  

By implementing these solutions, companies can play an active role in improving both the mental and financial health of their workforce. 

Financial Wellbeing in the Workplace: A Way Forward 

Optimising mental health through financial wellbeing is key to creating a thriving and supportive work environment.

By making financial wellbeing a priority, companies can reduce stress, improve employee engagement, and build a positive, productive workforce. And with Prestige Private Finance offering these services free of charge as part of our CSR efforts, supporting employee wellbeing has never been more accessible. 

At Prestige Private Finance, we believe that optimising mental health through financial wellbeing is more than just a goal—it’s a necessary step toward building resilient, happy teams. Together, let’s make financial wellbeing an integral part of workplace wellbeing and help employees manage life’s ups and downs with confidence. 

Book a discovery call and see how Financial Wellbeing could bring peace of mind to your employees.