Did you know employees with money worries are 50% more likely to report signs of poor mental health that affect their performance at work?

The HR Blog

Analysis by The Money and Mental Health Policy Institute, sponsored by Salary Finance, has revealed that over two thirds (67%) of employees who are struggling financially report at least one sign of poor mental health that could affect their ability to function at work.

Symptoms include loss of sleep, poor concentration, and reduced motivation. With 5% of employees saying that they are finding it difficult to make ends meet, that’s nearly one million people in the UK who are likely to be struggling with mental health difficulties at work, driven by financial issues. For those who are financially comfortable, this falls to 41% reporting the same signs of poor mental health.

Financial difficulties hit sleep, concentration and productivity

This analysis of data from 40,000 households shines a light for the first time on the relationship between the two. The charity found:

  • A third (36%) of employees who are in financial difficulty reported loss of sleep in the last month, compared to 13% who are financially comfortable
  • Nearly a third (29%) said they’ve struggled to concentrate lately due to stress or worries, compare to just 12% who are financially comfortable
  • Over half (55%) said they’d achieved less than they’d like in the last month due to mental health problems, compared to just under a third (30%) for those who are financially comfortable.
  • In addition to struggling with sleep, concentration and productivity, employees in financial difficulty also reported particular issues with workplace relationships and juggling the demands of multiple jobs or managing financial admin during work hours.

What should be of additional concern to employers is that it is not just those that are experiencing difficulties that are affected.

There is also a noticeable difference in the symptoms of poor wellbeing among employees who identified themselves as ‘just about managing’ financially, suggesting that even a less intense financial strain can have an impact on both well-being and productivity.

Financial difficulties significantly increase our risk of developing mental health problems, and with nearly half (45%) of all working days lost to ill health in 2015/16 caused by stress, the case for employers to act is strong. 

As an employer what can you do?  Often your bank will be willing to come in free of charge and have one to ones with your employees, you can encourage them to use the childcare vouchers scheme or ride to work.  If you see an employee is struggling then speak to them and encourage them to speak to someone professionally to help them.

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