According to new research conducted by Healthwatch, changes necessitated by the cost-of-living crisis are having a negative effect on employee mental health. The impact can vary in severity, from stress to depression and anxiety, and employers are starting to consider what mental health services they might offer to assist.
Read on to find out more about the latest statistics and what employers can do to help support employee mental health and financial wellbeing.
How Has Cost of Living Impacted Employee Mental Health?
Healthwatch has recently conducted a poll of 2008 adults across England to analyse the impact of the cost of living crisis on their physical and mental health. The findings showed that many are having to go without when it comes to health and care due to the rising cost of living. This, in turn, is having a significant impact on their mental health.
38% of participants stated that the changes they had had to make due to the cost of living had negatively impacted their mental health. For those under the most financial pressure, this figure rose to 68%. 15% reported their ability to work having been impacted by these changes, and 13% found it more difficult to manage a long-term health condition.
The research also revealed that 21% of participants avoided visiting the dentist, 5% were unable to afford the medication they needed, and 4% could not cover the cost of travelling to appointments. Perhaps more alarmingly, 19% of participants reported eating less healthily, 12% had skipped meals, and 12% stopped doing things which kept them fit and healthy.
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Those under most financial pressure were affected most severely. 95% of people describing their financial situation as “not at all comfortable” had had to make at least one lifestyle change due to the expense. Meanwhile, Nuffield Health’s annual Healthier Nation Index survey has revealed that 75.76% of those working in sales, media, and marketing had suffered deteriorated mental health due to the cost of living.
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How Can Employers Help with the Cost of Living Crisis Impacting Employee Mental Health?
Given the substantial impact which lifestyle, including food, exercise, and physical health, has on mental health, this is not altogether surprising. According to Mind, a mental health charity, being unable to afford day-to-day necessities can lead to mental health problems.
Many employers are keen to support their employees through the cost-of-living crisis, including with respect to employee mental health. When considering how best to achieve this, it is necessary to address both elements of the problem. This means looking at how employers can help from both a financial and a mental health perspective.
Financially Supporting Employees During the Cost of Living Crises
With respect to payment sums, employers might consider paying their employees a real living wage. Higher than the National Living Wage, the real living wage is currently £12.00 per hour for most of the UK and £13.15 per hour for London. Already paid by 14,000 UK employers, this is thought to be a more realistic sum to enable employees to meet their actual outgoings.
Salary sacrifice is another method used by some employers to help their employees financially. In effect, employees can choose to exchange a portion of their gross salary for alternative, non-cash benefits, such as childcare vouchers or Cycle to Work schemes. This effectively lessens employees’ income tax and National Insurance contributions whilst providing a discount on specific outgoings.
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Offering a health cash plan would assist employees with certain medical expenses. Moreover, providing group income protection will also give employees financial peace of mind if they are unable to work due to illness or injury. Additional financial assistance for employers to consider might include retail discounts, membership schemes, and the ability to sell back unused annual leave.
Finally, allowing employees to enhance their financial understanding may be a more long-term method of assistance. Providing information on topics such as budgeting, managing debt, and financial safety nets may help many employees feel more in control. Establishing internal networks where employees can openly discuss their financial concerns may also help employees share their problems and help one another.
Employee Mental Health: Perks at Work to Motivate Workforce
As the studies above highlight, many who are struggling with the cost-of-living crisis are likely to also be struggling with their mental health. As such, it is equally important for employers to provide perks at work to support employee mental health. This is likely to be through a combination of specific mental health services and/or mental health therapy (such as mental health counsellors), and initiatives to help achieve a positive workplace culture.
One way to help boost employee mental health and motivation may be by implementing an employee recognition program. These programs would acknowledge employees’ contributions to the overall success of the business and reward them. Different categories of awards in employee recognition programs might include customer service, personal development, team performance, and client growth or retention.
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Similarly, employee rewards programs make employees feel appreciated, thus improving overall employee mental health. Enabling employees to highlight each other’s efforts and providing the added incentive of rewards which employees find attractive combine to create a successful employee rewards program.
Supporting employee mental health by providing forms of mental health therapy is another important option to consider. Recommending specific mental health services, mental health counsellors, or even offering discounts on mental health services could help.