COMP NEWS – UK companies are offering strategic bonuses to ease the financial and mental strain of an economy working against employees. Several CEOs also warn of a nationwide mental health crisis if the economic issues plaguing workers are not mitigated soon.
Financial wellbeing and mental health are inextricably linked: when one falters, the other is likely to follow. With the cost-of-living crisis and a recession increasingly likely, there are growing concerns of a potential nationwide mental-health epidemic.
A group of charity CEOs, which includes the chief executives of mental health charity Mind and the Samaritans, recently drew attention to this concern in a letter to the prime minister. They said that, despite significant attention being drawn to the cost-of-living crisis and the likelihood of a recession, “there has been no recognition of the risk this poses to the nation’s mental health”.
A survey earlier this year from the Money and Mental Health Policy Institute, which was founded by money-saving expert Martin Lewis, also shows the impact. It revealed that 59% of adults thought the cost-of-living crisis was having an adverse effect on their mental health, with one in five saying the pressure was so much they felt “unable to cope”.
Numerous banks and news organizations are offering bonuses in excess of £1,000 in order to retain their employees and bolster their productivity.
One headline-grabbing solution that companies are offering is a ’cost-of-living bonus’ or one-off payment, to help employees through the more expensive winter months.
Online bank Monzo is one of the latest to offer a £1,000 payment for staff earning less than £40,000 a year. In the announcement on LinkedIn, company CEO TS Anil says: “There is a strong link between financial needs and mental health and, as a company, we’ve always cared deeply about mental health. We have a support network in place, which includes mental health first-aiders, access to support and insurance.”
Monzo is not alone in issuing one-off payments to staff. Lloyds Bank, Virgin Money and Taylor Wimpey are giving thousands of their staff an additional £1,000 in their pay packets, while employees at the Financial Times will receive £1,800.
Studies have indicated that companies aiming to secure retention and productivity should prioritize financial bonuses for their lowest-paid employees, aiming to pay them a living wage – no matter the economic conditions.
There is a recognition that companies considering financial benefits for staff should prioritise assistance for the lowest-paid employees. A study from the ONS found that those with a gross personal income of less than £10,000 per year had the highest percentage of people reporting feeling very worried (31%) about the cost-of-living crisis. In contrast, only 12% of those with a gross personal income of £50,000 or more felt very worried about the current situation.
Money and Mental Health Policy Institute chief executive Helen Undy says there are many ways that businesses can support their employees’ financial and mental health – the most obvious of which is to ensure all staff are paid at least the living wage.
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