Financial stress is now the leading strain on employees’ wellbeing, with women disproportionately affected, the TELUS Mental Health Index shows. Paula Allen, Global Leader, Research & Client Insights at TELUS Health, outlines why this gap matters and how employers can help close it.
Financial wellbeing is both a health and business productivity issue. In the latest TELUS Mental Health Index (the Index), finances remain the top source of personal stress for the second consecutive period. Two-thirds of employees report low confidence in their financial futures and women are 40 per cent more likely than men to describe themselves as financially vulnerable. When money worries rise, mental health declines and so does focus, productivity and retention.
Without financial stability, wellbeing crumbles
Financial strain is an economic concern that can show up in the workplace as sleep disruption, heightened anxiety, reduced concentration and more days lost to absenteeism and presenteeism. When times get tough, women are more likely to be forced into difficult trade-offs – for example, the Index shows women are 40 per cent more likely than men to cut spending on health and wellbeing. Further, among those who have reduced their health and wellness spending, mental health scores are more than 13 points below the national average, showing financial stress can directly erode overall wellbeing.
The drivers of this disparity are multifaceted. Women are more likely to experience lower average pay, take career breaks or reduce hours for caregiving, and face a longer life expectancy that requires savings to stretch further. These realities can result in less buffer in savings, reduced pension contributions and lower financial confidence over time. In a high cost-of-living environment, a job loss, unexpected expenses, or rising bills can all push thin margins into crisis. Recognising these patterns helps employers target wellbeing support where it makes the most difference.
The reality behind the numbers
Picture a mid-career team member who is a single mother facing constant financial pressure. She reviews her budget and makes the cuts she can: a gym membership goes first, then counselling sessions are postponed indefinitely. She reduces her pension contributions to cover rising childcare costs. Soon, financial worries begin stealing her sleep. Exhausted, she struggles to concentrate at work—her productivity slips, and with it, her confidence.
This cycle is playing out in workplaces everywhere, and the consequences are not from a lack of effort, but from a lack of adequate support. Employers have both an opportunity and a responsibility to intervene and influence a different trajectory.
Discussing money openly is a first step to restoring confidence and reducing anxiety. Through an EAP program, employers can make a tangible difference by offering access to financial professionals who help employees build emergency savings, improve budgeting skills and plan for the future with greater certainty. Support that acknowledges life’s realities, such as motherhood and eldercare, is essential. EAP and work flexibility where possible can help here as well. The main point is that the support and services that employers provide can offer early, consistent guidance which helps women strengthen their financial security and overall sense of wellbeing.
What employers can do:
Provide comprehensive wellbeing support: Consider EAP solutions that provide diverse solutions that cater to the ranging needs of individuals, including financial wellbeing resources, mental health benefits and digital tools so help is easy to find and access.
Encourage financial wellbeing: Offer payroll-linked emergency savings, encourage, match or auto-escalate pension contributions and provide access to financial coaching.
Equip managers: Two in five managers report being unsure or would not know what to do if they suspected an employee was struggling with a mental health issue. Training leaders to spot signs of stress, lead empathetic conversations and connect employees to resources is critical.
Communicate benefits: Three-quarters of workers say their organisation’s communication about health and wellbeing programs is unclear or inconsistent.Employers must ensure teams are aware of the wellbeing benefits available to them and how to access them through regular reminders and manager check-ins.
Financial wellbeing is a health intervention and for many women at work, it’s the missing piece. Employers must include financial wellbeing into their overall wellbeing strategy with a clear gender lens. This includes fair pay and progression, practical support through life transitions, accessible advice, pensions and integrated mental health resources, which can reduce stress, protect mental health and keep talent engaged. Closing the financial security gap is how we begin to close the mental health gap, which will strengthen the foundations for a resilient, productive workforce.
By Paula Allen, Global Leader, Research & Client Insights, TELUS Health
