Written by Nicola Hemmings, Head of Workplace Psychology, Koa Health
The ongoing economic downturn is creating a unique mental health crisis in the UK as financial worries have left many struggling to cope.
However, the effects of the crisis will not be borne equally. People on higher salaries will be insulated from the most concerning effects. Conversely, people in precarious employment, or in companies where wage growth has stagnated, will likely be more stressed as they worry about making bill payments or supporting their families. Despite this, the crisis will be felt by all, whether that’s through increased outgoings or a reduction in the value of savings accounts and pensions.
Helping to address the mental health issues stemming from the cost of living crisis is imperative for employers today. Doing so is part and parcel of the pastoral care HR leaders are expected to deliver, but it is also a business practicality. After all, stressed or anxious workers will not be as productive as those with peace of mind.
Fortunately, there are a range of levers that employers can bring to bear to address this challenge.
Become a ‘knowledge hub’ for financial support
First, there is a clear opportunity for employers to become a “knowledge hub” for financial information and resources. For instance, the HR department could set up financial clinics or advice forums or provide access to trusted third-party sources of financial advice.
Reduce work-associated outgoings
Employers should consider ways they can reduce the outgoings associated with work. For instance, by allowing people to work from home as often as possible so they can reduce travel expenditure. As there is a cost associated with heating and lighting a home office, employers could also investigate the practicalities of setting up local office spaces.
Offer more flexible payment schedules
Finally, to help with cash flow, HR could offer more frequent payment schedules to workers, such as weekly or biweekly.
All these levers will help address some of the practical challenges of the cost-of-living crisis. Until macroeconomic conditions allow, workers will continue to feel the squeeze, which will continue to have an impact on many people’s mental health. As such, employers should also offer comprehensive, continuous care solutions right across the mental health continuum. By ensuring that people have the support and help they need when they need it, employers can promote better wellbeing.
