COVID-19-related financial stress is hurting employee health and well-being

In the aftermath of a tight election, and in the midst of a pandemic, it’s confirmed: 2020 has been a stressful year for both our health and pocketbooks.

With 230,000 Americans lost and millions more fallen sick, it’s not surprising that many are feeling immense stress regarding their personal well-being and the health of their family members – and it’s starting to take its toll. According to the Kaiser Family Foundation, 53% of US adults say stress related to the coronavirus has hurt their mental health–with 36% saying it’s cut into sleep and 12% stating it’s worsened chronic conditions.

Many of us don’t realize the deep connection between stress and physical health, but researchers have confirmed that stress symptoms have a direct impact on our physical and emotional well-being.

According to the Mayo clinic, stress often manifests physically through migraines, chest pain, fatigue, muscle tension and even a weakened immune system, leading to further illness.

Leading the pack in the causes of stress are finances, which is unsurprisingly being compounded with the world’s collective pandemic-related stress. Consider that 29% of Americans struggling with debt suffer from anxiety, while workers facing high financial stress are twice as likely to use sick time to cope.

What’s worse is this pandemic-related worry is compounded by the existing stress the average American was already feeling, prior to COVID. Our own data confirmed in October that nearly half (48%) of knowledge workers report feeling stressed or concerned about their personal finances, a spike of 9% from just three months prior.

Financial stress has even been shown to affect what the medical community considers a statistically healthy demographic. A Northwestern University study revealed that adults between 24-32 years with high debt, had higher diastolic blood pressure at “clinically significant” levels.

Financial stress can also lead to a cycle of physical neglect that makes this issue worse. Nearly 1 in 4 Americans admit to avoiding medical treatment, due to the inability or fear of paying medical bills–and another 15% report family members forgoing medical care due to cost concerns. All of which leads to deteriorating conditions that ultimately drive up total healthcare costs and fuel even more financial stress.

Though a stimulus package is likely and will play a vital role in helping many Americans alleviate short-term financial stress and get back on their feet, the timing and content of a deal remain unclear–and it’s unlikely to put an end to the crisis.

However, this is an opportunity for businesses and workplaces to step in and lead.

Companies have already played a pivotal role in the pandemic. The vast majority have accommodated for the overnight transition to remote work, rewiring processes and providing technical, mental and financial support for employees.

They’re also uniquely positioned to tackle issues related to financial stress as an employee’s financial life is tied very closely to their employer’s as their source of primary income and benefits.

Employers can take several steps to address the connection between physical, mental and financial suffering.

• Educate employees about the link between financial stress and physical and mental well-being. Awareness paired with urgency are vital to fuel action.
• Underscore the connection between financial wellness and additional life goals–such as paying down debt or buying a home–in addition to physical and emotional health.
• Mobilize comprehensive tools to promote financial wellness for all employees–and encourage adoption and utilization of these benefits.

One of the biggest barriers to improving the financial wellness of employees, and thereby their physical health, is the perception that many corporate executives have, of financial wellness as a “nice to have” benefit, rather than a vital and urgent need. Our recent survey reveals that when employees ranked employer-sponsored benefits, “financial wellness” was consistently ranked higher than workplace standards like healthcare and vacation time – and was only surpassed by “salary.”

Perhaps the biggest opportunity is at this very moment, via open enrollment. Companies can create real change and impact in their employees’ lives via employer sponsored benefits programs.

Recasting benefits during open enrollment to focus on what truly matters most to employees today is key. Especially with an all-remote workforce, perks like ping pong tables, commuter benefits and onsite meals are suddenly irrelevant for the well-being of your employees.

By reinvesting that budget into financial wellness tools and resources–and encouraging your employees to enroll and use them during this important time–companies can reduce employee financial stress, improve health outcomes and drive substantial business outcomes. Reducing financial stress increases physical wellness, which in turn creates more engaged and productive employees who stay in their role for longer and fuel a stronger bottom line.

After all, when the pandemic is over, or when an employee meets a financial goal they never thought they’d achieve, they’ll never forget the company that helped them stay healthy and even thrive amid the worst pandemic in modern history.

Marthin De Beer is the CEO of Brightplan.