Between the ongoing fallout from Covid and the cost-of-living crisis, employees are increasingly seeking assurance that their employers genuinely care about their financial wellbeing, argues Marc Holl.
In the face of the escalating cost of living, employees and businesses are both grappling with the profound impact of surging prices on essential goods and services, adding yet more financial strain and stress to those already working in a challenging landscape.
Recent statistics paint a concerning picture, with 47% of UK employees admitting they have minimal to zero savings left at the end of each month, and an additional 15% indicating their households struggle to cover monthly expenses.
The Nuffield Health 2023 Healthier Nation Index revealed a staggering 59% of individuals believed the cost of living or changes in personal finances had negatively affected their mental health over the past year.
How does cost of living impact your workplace?
Financial worries can take a severe toll on mental health and, without adequate support, these concerns can erode an individual’s confidence and sense of identity in the workplace.
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The ability to focus and maintain productivity may wane, leading to increased absenteeism and presenteeism. Another consequence employers may encounter is employees taking on additional jobs to make ends meet in the face of rising costs.
Research indicates that 5.2 million workers have already taken on extra employment to cope with the cost-of-living crisis. While this may temporarily address financial pressures, it can also lead to exhaustion and burnout. And we all know that fatigued and anxious employees are not conducive to a healthy and productive work environment.
Workplace burnout can impair short-term memory, attention, and other cognitive functions vital for daily work tasks, significantly diminishing overall productivity.
Burnout is also associated with a 63% higher likelihood of taking sick days and a 2.6 times greater likelihood of actively seeking alternative employment.
The ‘privileges’ of workplace wellbeing
Amid the trials of Covid-19 followed by the cost-of-living crisis, a silver lining did emerge: a heightened focus on employee benefits and their importance to the workforce.
And there has never been a more opportune moment for companies to revisit their benefits packages to provide enhanced support.
However, there are common assumptions made by workplaces regarding employee wellbeing, delve and these can be problematic.
Financial instability makes it difficult for employees to afford even basic necessities, let alone invest in self-care activities or wellness-related expenses”
For example, many businesses encourage employees to prioritise self-care, recognising the importance of optimal mental and physical wellbeing, especially during challenging times.
However, the harsh reality is that financial instability makes it difficult for employees to afford even basic necessities, let alone invest in self-care activities or wellness-related expenses.
Lower-income employees may lack access to resources like fitness facilities, healthy food options, and mental health services, exacerbating the disparities in wellbeing.
Workers with irregular or unpredictable schedules often find it nearly impossible to plan and commit to self-care activities.
This is particularly true for those in lower-paid or high-pressure roles, who cannot simply take breaks whenever they need to decompress from stressful jobs.
Marginalised groups also face a myriad of challenges beyond daily work-related stress, as they’re more likely to contend with exposure to crime, drug-related incidents, and overcrowded living conditions.
Access to nutritious foods has become increasingly unaffordable for many households. A recent study estimated that lower-income families would need to allocate a staggering 43% to 70% of their food budget to fruits and vegetables to meet dietary guidelines.
Providing workplace support
It is evident the persistent stress resulting from living with less than one’s basic needs can inflict constant wear and tear on the body.
This not only disrupts the body’s physiological stress response mechanism but also diminishes the cognitive and psychological capacities needed to cope with daily challenges.
While many businesses take pride in offering a range of perks to support their employees during difficult times like the ongoing cost-of-living crisis, our data from 2022 reveals one in three employees are offered no physical or mental wellbeing services by their employers.
One in three employees are offered no physical or mental wellbeing services by their employers.”
At Nuffield Health, we firmly believe that responsible businesses should make these services available to their staff, and those who have not yet done so should consider partnering with expert third-party health providers who can guide them in implementing the most effective offerings.
For the two-thirds of businesses that do provide employee benefits, it is important to recognise not all these benefits may be accessible or suitable for every employee.
For instance, offering a subsidised gym membership may not be a genuine benefit if employees do not have access to a nearby gym or cannot afford even the reduced membership fee.
To address these disparities, managers must fundamentally rethink their benefits offerings to promote fairness, equal opportunity, and prevent burnout. When deciding which benefits to offer, especially during a cost-of-living crisis, gathering feedback from employees is essential.
Importance of tailored benefits
Understanding their unique needs and challenges allows for tailoring benefits to address immediate concerns, which can significantly enhance their wellbeing and loyalty to the organisation.
Providing employees with fair and competitive wages represents one of the most direct ways to mitigate financial challenges associated with the cost of living. A living wage can help employees cover their basic needs without experiencing excessive financial strain.
In cases where physical presence at the workplace is necessary, businesses might consider providing transportation benefits, such as subsidised public transportation passes, to help alleviate commuting costs.
Recognising signs of burnout, financial stress, or anxiety among employees is crucial.”
Offering childcare benefits or access to discounted childcare services can also assist employees in managing the high costs associated with childcare during a cost-of-living crisis.
Recognising signs of burnout, financial stress, or anxiety among employees is crucial. Employers should direct their employees to emotional wellbeing support resources, including employee assistance programmes (EAPs) and cognitive behavioural therapy sessions (CBT).
These resources provide individuals with direct access to specialists who can help them explore and understand the factors affecting their health and wellbeing.
Employers should communicate helpful resources for accessing monetary support, debt management helplines, or financial literacy programmes.
Whether these resources come from external providers or the company itself, they empower employees to make informed decisions about budgeting, saving, and managing their finances.
Additionally, employers can highlight community resources, government programmes, and non-profit organisations that offer accessible self-care resources for employees with limited financial means.
During these challenging times, employees seek assurance their employers genuinely care about their wellbeing.
Wellbeing is intertwined with feeling valued and appreciated, and it is essential our colleagues are met with understanding and assistance every step of the way.
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