Financial Wellbeing and Mental Health: Understanding The Relationship
For this World Mental Health Day 2024, the theme is “it is time to prioritize mental health in the workplace”. Level wants to take a moment to highlight the well-documented relationship between financial wellbeing and mental health, and how employers can take action to support their employees’ mental health through their workplace and employee benefits packages:
The Link Between Financial Wellbeing and Mental Health
It's no secret that financial stress can take a toll on our mental health. In fact, research shows that 1 in 3 people say their finances have directly affected their mental health. When employees are worried about their financial situation, it can lead to anxiety, depression, and other mental health issues.
Confidence and Financial Literacy
One key contributor to financial stress is low confidence in managing finances. Astonishingly, 88% of people in the UK don't feel confident with their finances. This could come from various different sources, for example:
Having personal debt
The cost-of-living crisis
Unstable incomes
Unexpected expenses
The list goes on. A lack of confidence in personal finances can exacerbate feelings of helplessness and stress, further impacting mental health.
A Solution Worth Considering
Employers are able to support their workers’ mental health through workplace initiatives and employee benefits. In recent years, On-Demand Pay has emerged as a promising solution for employers to help employees alleviate some financial stress. With On-Demand Pay, employees can access their earned wages before the traditional payday, providing them with greater control over their finances.
The Impact of On-Demand Pay
Increased Confidence: 88% of users reported feeling more confident with their finances after gaining access to On-Demand Pay. This newfound confidence can significantly reduce stress and improve overall mental wellbeing.
Immediate Relief: Employees no longer need to wait until payday to cover unexpected expenses, reducing the financial pressure that can contribute to mental health issues.
Why This Matters for Your Organisation
On this World Mental Health Day 2024, it is particularly important for employers to understand the connection between financial wellbeing and mental health. This will help employers effectively support their workers through workplace initiatives. Providing the appropriate tools and resources to help employees manage their money effectively is imperative.
Consider how you can support your employees' mental health through financial wellbeing. Implementing solutions like On-Demand Pay can be a powerful step towards fostering a healthier, happier workforce.
Explore how On-Demand Pay and other financial wellbeing initiatives can make a difference in your organisation. Show your employees that you care about their mental health by addressing one of the root causes of their stress - their finances.