Employee Burnout and Financial Well-Being: How Helping Our Teams Develop Financial Acumen Combats Burnout and Promotes a Healthy Workplace
The Healthcare Businesswomen’s Association (HBA)Think Tank recently released its Mental Health, Wellness & Work Survey, examining the factors impacting the overall wellness of those who make up the diverse healthcare workforce. The report found that 64% of respondents experience work-related mental health challenges, and illuminated several key themes, including the need for flexibility, access to mental health resources, supportive leadership and management practices, a culture willing to addresses root causes of stress, and wellness initiatives and benefits — including those focused on financial support.
Financial stress is factor impacting overall wellbeing.
In fact, approximately 50% of the healthcare professionals surveyed by HBA noted personal financial concerns as a factor impacting their overall wellness at work, with Generation Z and Millennials experiencing this stressor at higher levels (56%). Other sources echo these findings.
According to a recent article by Psychology Today, 72% of Americans report feeling stressed about money at some time during the prior month. Further 57% of respondents to PWC’s 2023 Employee Financial Wellness Survey said that finances are the top cause of stress in their lives. Other findings indicate that financial stress goes beyond what is present in employees bank accounts, as worries about money were reported to have a negative effect on sleep (56%), mental health (55%), and physical health (44%).
Why this matters.
Employers and leaders must be aware of the internal and external factors affecting their people, and in turn the organization and those it serves. Financially stressed employees tend to be more distracted, less engaged and productive, and are more likely to seek another job. In other words, financial stress can exacerbate burnout by decreasing mental capacity, which can impact job satisfaction, and contribute to physical and mental health issues like anxiety and depression.
That said, companies that work to address financial well-being and foster a culture of support for the mental and physical health of their people tend to retain more engaged and loyal employees. Promoting and enabling access to resources which expand employees’ knowledge base and ability to meet financial obligations and goals is essential to addressing this aspect of workplace wellness.
To supporting the development of your team’s financial acumen ...
Offer Financial Wellness Programs. Sixty percent of the employees who responded to the PWC study reported less financial stress due to the addition of financial wellness programs. Defined by ADP as “an employer-driven initiative designed to help employees manage money with less stress and more confidence,” these initiatives are intended to address more than salaries and retirement plans. They provide financial education and offer practical best practices for navigating finance related challenges.
Financial Education and Resources (Tools). Consider implementing workshops and providing educational materials on financial literacy and management, in addition to offering resources to assist employees with the budgeting, tracking, and forecasting of their finances.
Coaching. Offering financial coaching and related resources as a benefit is one way to help employees evaluate their options and make well-informed decisions about their future. In addition, consider who the coaches are. While employees need to understand their benefits, including retirement plans, the PWC survey found that employees across generations are most likely to trust a financial advisor that is not directly tied to financial products or company retirement plans.
Focus on Today. Implement financial wellness benefits that focus on the immediate money management concerns employees are facing. Benefits like coaching which can focus on longer term goals and financial resilience can get lost for employees faced with the stresses of meeting day-to-day financial responsibilities.
Explanation of Benefits. Highlight your total rewards so employees understand the value of their benefits and incentives. For instance, some employers offer emergency savings accounts or match contributions for savings and debt repayment.
Personalize Financial Wellness Benefits. Implementing wellness benefits which are reflective of said employee’s personal needs and stages, in life and career, is much more impactful than rolling out “one-size fits all” benefits and options. As the Mental Health, Wellness & Work Survey revealed, healthcare professionals at every stage of their career and from each generation experience mental health and wellness related challenges, but quite differently.
Today’s workforce expects financial resources, and therefore financial wellness must be a part the wellness conversation. Implementing a financial wellness program to support employees in managing their finances will enable them to focus more effectively while at work.
While incorporating any programming into an established company culture can create its own level of stress for the employees responsible for implementation, a good place to start is by conducting a financial wellness assessment, perhaps through a survey where everyone’s voice can be heard. The next step — bring in experts with the knowledge and experience to offer real-life solutions that employees can put into practice today. That said, the best wellness programs offer more than advice — they change the way people think about money, making financial wellbeing a “shared priority” as opposed to a burden of the individual.