3.0 The Importance of Employee Mental Health in Banking
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 treat employees affects their mental health. Their effect is different in each organization. But only recently, it’s been about caring for the health of their employees and not the outcome. Being able to be productive in organizations is a continuous need. concerns about changes in management practices and safety at work and health (A collective challenge world day for safety and health at work, 2016)
Focusing on the mental health of workers in banks is not just a good thing to do but makes good business sense. It helps organizations whose employees undergo some mental health awareness course, as they perform better and are not absent from work (Bakker & Demerouti, 2007). The importance of employee mental health in the banking sector is its impact on organizational outcomes, challenges that already exist, and ways to mitigate them.
Employers realize their employees are their best assets. Mental health can affect everything from a person’s work life to home life and everything in between. An employee's mental health can harm a company's profits in many different ways. When employees are absent, less productive, or have accidents, this causes the company to lose money. According to the study, a substantial amount of one trillion dollars in the US has excess costs due to lost productivity (Staff, 2023). However, there are ways by which the organization can help the employees maintain their mental health and run the business smoothly. A good way to allow the employees to maintain their mental health is to promote a healthy work-life balance. To effectively manage any challenges to their operation, the business must first understand how mental health can impact operations.
References List
· Goetzel, R.Z., Anderson, D.R., Whitmer, R.W., Ozminkowski, R.J., Dunn, R.L., and Wasserman, J. (1998). The Relationship Between Modifiable Health Risks and Health Care Expenditures. Journal of Occupational & Environmental Medicine, 40(10), pp. 843–854. doi:https://doi.org/10.1097/00043764-199810000-00003. [Accessed 21 Mar. 2025].
· Martocchio, J.J. and Jimeno, D.I. (2003). Employee absenteeism as an affective event. Human Resource Management Review, [online] 13(2), pp. 227–241. doi:https://doi.org/10.1016/s1053-4822(03)00014-7. [Accessed 21 Mar. 2025].
· A COLLECTIVE CHALLENGE WORLD DAY FOR SAFETY AND HEALTH AT WORK. (2016). Available at: https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@ed_protect/@protrav/@safework/documents/publication/wcms_ [Accessed 21 Mar. 2025].
· Bakker, A.B., and Demerouti, E. (2007). The Job Demands‐Resources Model: State of the Art. Journal of Managerial Psychology, [online] 22(3), pp. 309–328. doi:https://doi.org/10.1108/02683940710733115. [Accessed 21 Mar. 2025].
· Staff, C. (2023). Employee Mental Health and Revenue | Caseware. [online] Caseware Corporate. Available at: https://www.caseware.com/resources/blog/employee-mental-health-suffers-business/. [Accessed 22 Mar. 2025].
Your discussion on the mental health challenges in banking is insightful. Considering that high stress levels can lead to increased absenteeism and reduced productivity, how can banks implement proactive measures to support their employees' mental well-being?
ReplyDeleteThank you for your interesting inquiry. Banks should take preventive steps, including conducting frequent mental health check-ins, giving access to counseling services, and cultivating an open culture in which workers feel comfortable expressing mental health issues. These activities can assist in the early detection and management of stress related disorders.
DeleteYou've effectively figure out the impact of organizational stress on employee health. Studies have shown that employees experiencing high levels of stress have significantly higher healthcare costs and absenteeism rates.
ReplyDeleteI agree with your remark that reducing these negative effects and fostering a healthier workplace require addressing organizational stress through task management, open communication, and employee support initiatives.
DeleteSuch an insightful blog on the critical topic of employee mental health in the banking sector! I completely agree with how mental well-being directly affects productivity and engagement. The high-pressure environment in banking certainly exacerbates stress, leading to burnout and other health issues, as you've pointed out. It's encouraging to see that more organizations are recognizing the importance of mental health programs, as they not only benefit employees but also improve business outcomes. A healthy work-life balance and stress management initiatives can go a long way in reducing absenteeism and increasing overall productivity. Thanks for shedding light on such an important issue! (commented by Anuradha Gunasekara)
ReplyDeleteThank you so much for your thoughtful response! I’m really glad the post resonated with you. Without a doubt, mental health is one of the major contributors when it comes to how employees perform their jobs, especially in high-pressure sectors like banking (World Health Organization [WHO], 2020). Research has shown a significant association between chronic stress and burnout. Employees who are stressed have higher healthcare costs and absenteeism (Goetzel et al., 1998; Moreau et al., 2004). I'm so glad that organizations are rolling out more mental health programs that can contribute towards better employee well-being and a better business as a whole (Bakker & Demerouti, 2007; Staff, 2023). Encouraging employees to have a good work-life balance and giving them stress management tools is a good way to improve satisfaction and productivity.
DeleteThis article brings crucial attention to the often-overlooked issue of mental health in the banking sector. It’s clear that the direct link between employee well-being and productivity is vital for both individual and organizational success. The statistics on stress-related healthcare costs and absenteeism are eye-opening. Fostering a healthy work environment, with a focus on mental health awareness and work-life balance, is not only necessary but also a strategic business move. This is a must-read for all businesses looking to optimize employee well-being and productivity.
ReplyDeleteThank you for sharing your opinions. I totally agree that mental health is a key issue in the banking sector. It needs more focus! As you pointed out, employee well-being plays a significant role in their productivity. Health problems caused by stress as evident from data on the rising healthcare costs and absenteeism statistics. These blueprints tell us how much bottom lines are affected (Goetzel et al., 1998; Moreau et al., 2004). It’s great to see that organizations are taking steps to address mental health. As studies have shown, fostering a supportive work environment can not only bring down these costs but also boost overall performance (Bakker & Demerouti, 2007). Offering work-life balance and stress management programs is crucial to enhancing employee engagement and productivity (Staff, 2023).
DeleteThis piece highlights a crucial issue that often goes unnoticed in high-pressure industries like banking. It’s clear that mental health isn't just a personal matter. It has real business implications. Burnout and stress not only affect individual well-being but also lead to lower productivity, absenteeism, and financial losses for organizations. Promoting mental health awareness and fostering a supportive work culture isn't just the right thing to do. It's a smart business strategy. Investing in employee well-being is investing in long-term success.
ReplyDeleteThank you for your relevant comment. I couldn’t agree more; mental health is definitely a big issue. Most people overlook it in the banking business. Your right, burnout and stress have costs to business not just to individual but also to organizations Stress can cause lower productivity at work and absenteeism. Other things are higher health care costs. (Goetzel et al., 1998; Moreau et al., 2004) It’s more than the right thing to do; it’s good business—prioritizing mental health awareness at work and supportive work culture. According to Bakker and Demerouti (2007), investing in employees ultimately ensures long-term success by improving productivity and decreasing costs. It's a win-win for both employees and organizations alike.
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