Improving mental health in financial services: Is it just a matter of changing the culture?

The financial services sector is coming to grips with the fact that it is facing a mental health crisis. Several recent studies have set out to explore the impact of COVID-19 on the financial services sector and found that the pandemic has only exacerbated a pre-existing condition.

Ten years ago, an article explored the seven mental disorders most prevalent in financial services as reported by psychologists. Depression topped the list, which also included psychogenic pain, perfectionism and panic disorder.

The financial services sector is known for demanding hours and heavy workloads. In perhaps an extreme example, a Goldman Sachs Workplace Conditions study conducted last year revealed that first-year analysts were working about 100 hours per week on 5 hours of sleep per night. Not surprisingly, those respondents indicated the rigors of their job were negatively impacting both their physical and mental health.

The pandemic has thrown other stressors into the mix, including isolation during remote work, loneliness and difficulty drawing a line between personal and work time, according to the American Psychiatric Association. An APA survey found that employers were generally more accommodating of mental health challenges among employees during the pandemic, but employees across all industries remain reluctant to talk openly about mental health at work and are concerned about retaliation if they seek help or take time off due to mental health concerns.

For those working in the financial sector, pandemic-related stressors were multiplied. Many experts highlighted the connection between money and mental health during the pandemic. This tasked financial services professionals with tending to their own mental health while also helping their clients manage their mental health challenges related to financial disruptions.

According to Aon’s Global Wellbeing Survey, employee burnout and poor mental health as a result of remote working cultures and a growing climate of economic uncertainty is one of the primary risks faced by the financial services sector today.

The study found the top wellbeing risks impacting financial sector company performance in the wake of the pandemic were stress (67 percent), burnout (46 percent) and anxiety (37 percent). The study pointed to increasing workloads and long working hours as contributing factors. However, the study noted financial services professionals were already operating in a highly pressurized environment even before the pandemic.

The Banking Administration Institute surveyed its members last year about the impact of the pandemic and found that while it has not had much of an impact on career development and has even had a positive impact on work/life balance despite an increased workload, it has negatively impacted physical and mental health.

In fact, the survey indicates mental health took the biggest hit in the sector. The report encourages firms in the financial services sector to continue encouraging work/life balance, offering flexibility about where and when work gets done, and extending benefits for counseling services in an effort to remove the stigma around mental health.

The study also recommends modeling work/life balance at the highest levels by limiting after-hours communication and encouraging breaks and time off to fend off burnout.

In its report, Aon said the pandemic represents a line in the sand delineating a pivotal moment in the evolution of business operations and working practices. While businesses have been laser-focused on building business resiliency during the pandemic, they may have missed the opportunity to build resiliency among their employees.

Creating a culture that supports psychological wellbeing will become increasingly important within the financial sector, said Aon.

Some financial services firms have begun offering Mental Health First Aid training to help individuals address burnout before it escalates. The report encourages employers to go further by providing opportunities to help employees navigate personal and professional challenges and working to reduce the stigma around mental health challenges.

“When organizations demonstrate a commitment to supporting the wellbeing of their people in a meaningful way it sets a tone for the whole organization,” said the report.

Kristen Beckman is a freelance writer based in Colorado. She previously was a writer and editor for ALM’s Retirement Advisor magazine and LifeHealthPro online channel. She also was a reporter for Business Insurance magazine covering workers compensation topics. Kristen graduated from the University of Missouri with a degree in journalism.