Impact of Employee Well-Being and Mental Health on Their Work Engagement in the Banking Industry

  Organizations may offer work-life balance policies and programs to workers in order to reduce the pressure and conflict of many roles when balancing career and family. Striking a balance between work life and personal life is no easy feat; in fact, it is something that many bank employees will face on a daily basis. Work-life balance implementation in the banking industry impacts employee welfare. This impact, in terms of mental health, is able to reduce employee stress levels, physical health, job sustainability, community, and economic welfare. In addition, this works to boost the employee spirit to work. Employee well-being is the workplace’s condition of good physical, mental, and social health (World Health Organization [WHO], 2022). Well-being describes the positive feelings and emotions experienced by people, including purpose and peace of mind. The way an employee feels and experiences at work impacts their well-being and, similarly, their behaviors at work, like doing th...

  The mental health of employees, especially in high-pressure sectors like banking, has become a major issue these days. The mental ability of employees has a direct effect on their productivity, satisfaction, and engagement (World Health Organization [WHO], 2020). Those who work in the banking industry are under pressure. They cannot meet targets, work long hours, and keep the client satisfied. Burnout, stress, and anxiety will occur due to these factors. When people experience organizational stress, it is linked to health problems and their costs. A study involving more than 46,000 US employees showed that health care costs were 46% higher for employees who suffered a lot of stress (Goetzel et al., 1998). In addition, organizational stress was assumed to be related to elevated absenteeism (Moreau et al., 2004), which was associated with high costs for organizations and society . Organizational and business ethics have been gaining importance since the 1960s. The way managers trea...

  As defined by Schaufeli et al. (2002), “Work engagement is a positive, fulfilling, work-related state of mind characterized by vigor, dedication, and absorption.” It is different from job satisfaction, where job satisfaction refers to an employee’s overall contentment with his work. Work engagement refers to active and passionate involvement of employees in work. Employees who are engaged bounce back from difficulties, don't lose their focus, and get basic satisfaction from their work. For the banking sector, which has demanding expectations and client confrontations, work engagement is a strategy for the quality of staying ahead of the competition. The constantly changing environment of the industry helps employees to perform at their best every time. Engagement is an important driver of productivity and service quality. Key Components of Work Engagement Enthusiasm Employees show high levels of energy, mental adaptability, and personal investment in their work. When employees ov...

  Health is much more than not being diseased. It is a state of complete physical, mental, and social well-being of a person (Vinod and Ambatipudi, 2024).   Banking is a service industry, and this involves enormous amounts of interpersonal stress, which drains employees of their energy (Phadnis et al., 2015).   More and more, the banking industry is being questioned over employee mental health and well-being. Known for creating a high-performance culture, the industry pushes employees to stretch themselves to the limits. Banking professionals are presently experiencing tremendous pressures as the sector undergoes changes due to digitization, regulatory challenges, and global economic uncertainty. Failures of control, disruption, and threat bring out fear. It negatively impacts the mental health of the employees. It also hampers engagement, productivity, and retention. Thus, these can inhibit work. It is important for organizations to find, tackle, and minimize t...

As mental health and well-being become critical to workforce sustainability, the banking industry is realizing the importance of employee well-being. Many banks have taken the systematic measures to improve the emotional, physical, and psychological well-being of employees, as a healthy mind gives an engaged worker who performs better if we talk about banks performance. Examining Current Well-Being Programs and Policies in the Banking Sector Banks are taking a broad approach to well-being, focusing on mental health, alternate work arrangements, financial well-being, and well-being initiatives, among others. Two of the remarkable trends are that the discussion surrounding mental health is normalized and mental health support services are part of employee benefits packages. For example, numerous banks have begun providing EAPs, which offer counseling services that are confidential, mental health assessments, and crisis intervention. Deloitte’s Mental Health and Employers report (2022) sa...

  The world of banking is fast-paced and offers long hours of work with high pressure and competitive targets. However, banking employee engagement is becoming a strategic priority and a growing challenge. The conventional organizational structure unfortunately excludes mental health, which is now becoming a major contributor to motivation, productivity, and engagement. According to research, a mentally healthy employee is much more likely to be engaged, creative, and committed to their work, which many HR leaders have already realized. The Influence of Mental Health on Employee Drive, Efficiency, and Involvement Work engagement is when a worker shows a positive state of mind related to work that is fulfilling in nature and not negative (Schaufeli et al., 2002). Further, it is characterized by a worker’s vigor, dedication, and absorption. Poor mental health disrupts all three Motivation Conditions like depression or anxiety can lessen one’s intrinsic motivation and cause withdrawal...

  Leadership and management play a significant role in shaping employees' well-being and mental health, a fact that is especially true in the banking industry. Today’s financial landscape works a lot faster than it did a few years ago. The effect of leadership can have significant results on employee engagement. Consequently, everything is dependent on workplace culture, support, and wellness interventions in today’s world. Leaders and managers can create an environment conducive to the mental health of employees. They play an important role in maintaining the balance between the organizational needs and individual needs. The Role of Managers in Fostering a Supportive Work Environment Banking sector managers play an important part in experiencing employees on a daily basis. A good work environment is where there are open conversations, psychological safety, respect, and recognition. Managers are the first contact for most employees if they are stressed or burnt out, so their awaren...

  In recent years, organizational success has become more significant with employee wellness and mental well-being, especially in the banking sector,  a competitive and high-stress environment. Caring for employees is not only good for them but also necessary to improve work engagement, productivity, and retention. However, organizations must first measure what matters to manage it. This is where the leaders and HR team need to leverage the timely and accurate tools, robust metrics, and continuous feedback loops to get to know how and why employees feel that way. Tools and Methods to Assess Employee Well-Being and Engagement To properly assess employee well-being, it’s essential to mix measurable and subjective approaches. While workloads in the banking sector are often intense and performance-driven, these fine-grained tools will be able to identify stressors, burnout risks, and state of engagement well before crisis level . Employee Surveys and Indexes The use of annual or q...