Financial Burden Affects Workers’ Mental Health

Finance


Workers are stressed, and money worries are a major contributor to sleepless nights and poor mental health. Employees are increasingly looking to their employers for guidance in coping with the financial burden they are feeling.

In fact, 83% of the 2,840 benefits decision makers surveyed in MetLife’s annual benefits report said they believe their employees are financially sound, although the report Of the 2,884 full-time employees listed in the report, only 55% said yes.

Inflation, rising costs of living and debt were the top causes cited by workers in all groups as contributing to the decline in economic well-being. Findings from MetLife Life include:

  • Fifty-five percent of workers said they lived on their paycheck.
  • 55% said they were in control of their finances. This is down from his 61% in 2022.
  • Fifty-two percent said they do not have a three-month savings cushion. This is down from his 62% in 2022.

Nearly half (48%) of employees surveyed by MetLife cited financial concerns as a cause of poor mental health (up from 31% in 2022).

A PwC survey of 3,638 full-time U.S. employees found that financial stress impacted employee sleep (56%), mental health (55%), physical health (44%), were found to have a negative impact on relationships (50%).

Personal financial stress is a global problem, according to Nudge’s survey of more than 1,500 and 34 global HR and benefits leaders in 46 countries. Nudge is a global financial education provider based in London.

According to Nudge’s 2023 Global Economic Health Report, “half of global employees are worried not only about their personal finances, but also about the economic situation in their country.” “People want answers and they’re asking employers for help.”

financial counseling

PwC said in its report that “the vast majority of employees want financial help” and referred to “reliable and objective resources who are not using product sales or retirement plan rollovers”. He pointed out the importance of access.

However, according to Nudge’s survey, only 27 percent of employers offer financial counseling. 47 percent provide financial education and 32 percent provide financial advice.

Today, employees are less shy about asking for financial guidance and advice. In a PwC survey, only 33% of respondents said they were embarrassed to ask for such advice, but compared to 42% in 2019, they were more likely to find ways to align financial wellness with their stage of life and career. Customizing benefits is one employer strategy suggested by PwC’s report.

Asim Hafeez, owner and operator of Empower Energy Solutions in Darien, Connecticut, informally funds and mentors 35 full-time employees.

Mr. Hafeez invites speakers to speak on various financial topics and introduces employees to various books, courses and other resources. In his 20s, the entrepreneur achieved financial independence, what he called “the status of choosing a job.” He often acts as an advisor to employees considering various financial decisions, helping break down large financial goals into bite-sized goals. A recurring topic employees raise with him is how to retire early.

“People have money, but they need to defend themselves with what they have,” Hafeez said. That includes learning how to budget. Set small, realistic goals and build on them. and avoid consumerism.

The cause of the financial burden experienced by employees is “Most of the time, [poor] His organization celebrates financial victories for its employees, whether it’s when someone buys their first home or contributes to Ross’ personal retirement account for six years in a row, Mr. Hafez said. added.

Financially Responsible Self-Care

Craig Rubino, head of participant insights, financial health and learning at Morgan Stanley at Work, said the practice of financial coaching and mentoring has emerged over the past decade.

More recently, however, employers have taken into consideration how economic stress, such as worrying about a spouse losing a job, managing retirement benefits, or worrying about a possible recession, can adversely affect workers’ personal and professional lives. is becoming

“This level of stress is driving the need for us to focus on financially responsible self-care,” Rubino said. “Living on a limited budget can lead to a sense of loss. [workers’] Happiness and productivity. “

Third-party financial coaches can help individuals discuss cutting unnecessary expenses with families, help develop budgets, and help employees take advantage of cost-saving benefits such as employee discounts, transportation allowances, and medical savings accounts. It helps to ensure that

Rubino said there are four main topics that financial coaches and counselors can address.

  1. personal budget.
  2. How to cut costs.
  3. Whether it’s mobile apps, online tracking tools, or traditional spreadsheets, it’s the perfect tool for your personal financial needs and helps you develop a habit of using these tools.
  4. Tools to manage self-care enable employees to approach finances more mindfully and with less stress.

According to Rubino, the most successful companies with financial counseling perks are listening to their employees. One approach is to survey your employees to understand their top financial stressors and needs, and use that data to prioritize the benefits they want most.

According to MetLife Life, economic stressors have been found to differ by some population groups. Older employees and men were more likely to cite inadequate retirement savings as their main financial stressor. For women, the biggest concerns are whether they will be able to save for major purchases such as cars, college, and homes, and whether they will be able to cover out-of-pocket medical expenses such as insurance premiums, deductibles and co-payments, which increased from last year. It was whether Year.

Other SHRM resources:
Employers are stepping up the use of emergency savings accounts, SHRM Online5 July 2023.
As employees prioritize financial gain, some employers make cutbacks, SHRM OnlineMay 26, 2023.





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