Overstretched, overdrawn, underserved: financial difficulty and mental health at work

1. Context
2. The study
3. Key findings
4. Points to consider

• Context
• The study
• Key findings
• Points to consider
• Full report

Context

Almost half of all UK employees (45%) report at least one sign of poor mental health that could affect their ability to function normally, including reducing their productivity in the workplace.Poor mental wellbeing affects employees across the public and private sectors. Financial difficulty can lead to, and be exacerbated by, mental health problems. One in four individuals with a mental health problem also experience problem debt, and half of individuals in financial difficulty have a mental health problem. Financial difficulties can negatively affect an individual’s workplace productivity, reducing concentration and motivation, and impacting upon relationships with colleagues. Some employees in financial difficulty record higher absence levels than their financially stable counterparts.

The study

The Money and Mental Health Policy Institute conducted this study in 2017. The study aimed to explore the connection between financial difficulty and mental health at work, and to raise awareness and understanding amongst mangers, encouraging employers to provide appropriate support to tackle the productivity gap. The study used a mixed-methods approach, including:

• Secondary data analysis based on Understanding Society, a large-scale longitudinal study of UK households, which gathers information on health, work, education, income, family and social life.
• Analysis of original online survey data from 402 members of Money and Mental Health’s Research Community, who all have lived experiences of mental health problems and financial difficulties in work.
• An online focus group with seven members of Money and Mental Health’s Research Community, who opted in via the online survey, to provide qualitative insights into the data findings and to help co-create the study recommendations.

The study was sponsored by SalaryFinance.

Key findings

The study identified the following key findings, and made a series of recommendations.

• Almost half of all UK employees (45%) report at least one sign of poor mental health that could affect their ability to function normally.
• Experiencing poor mental health can reduce productivity. A third of employees (34%) felt they had achieved less owing to emotional concerns, and 32% felt they worked less carefully than usual. Some employees experiencing financial difficulty also reported poorer concentration levels than financially comfortable individuals.
• A quarter of the UK workforce experience financial insecurity to some extent. One in five employees (21%) report that they are just about managing financially, while a further 5% are experiencing financial difficulty. Nearly 17 million people have less than £100 in savings, and eight million are over-indebted.

The study recommends three approaches to employers to reduce the link between financial difficulty and mental health problems in the workplace:

• Building financial resilience: Consider providing savings schemes and short-term loans through payroll, including offering a lower rate of interest and helping employees avoid fees and charges.
• Making it OK to say: Incorporate problem debt and financial difficulty into management training, to reduce stigma and ensure employees experiencing financial difficulty can attend social or professional events.
• Helping once problems have set in: Establishing reasonable sick pay policies, to support employees to avoid financial difficulty if they need to take leave. This could include group income protection policies and signposting to welfare advice.

Points to consider

• Methodological strengths:
  • This study draws on data from wave 6 of the Understanding Society survey, collected in 2014/15. The analysis is based on responses from a sample of approximately 22,000 employees. The base size varies by question as some individuals refused to answer specific questions.
  • However, given the sizeable data set the findings are robust, and should be of interest to employers across the public and private sectors. The study provides full citations for the datasets sets used.
• Generalisability/transferability:
  • The study triangulates the analysis of the Understanding Society data with additional survey data from 402 members of Money and Mental Health’s research community, who have lived experience of mental health problems and financial difficulty at work. The data was collected via an online survey in May 2017, and includes some qualitative thematic insights. An online focus group was also held in May 2017 with members opting in via the survey.
  • Focus group participants were selected to ensure a mix of genders and professions. This focus group enabled the study team to gain deeper insights into the lived experiences of employees experiencing financial difficulty at work, and the group co-created recommendations for policy development. This approach ensures the report reflects the views of the target group and that the study recommendations will resonate with employees in diverse workplaces.

Full report

Overstretched, overdrawn, underserved: financial difficulty and mental health at work -full report