5.0 Mental Health Consequences of Job-Related Stressors

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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 these risks.


 Common Stresses in the Banking Sector

Banking professionals work in a high-pressure and high-stakes environment. Long working hours is one of the major stressors in the sector. According to the Financial Times, investment bankers, in particular, work around 80–100 hours a week and have very little time to rest  (Coben, 2024). Such overwhelming schedules make work-life balance infeasible and increase burnout chances.

Another big factor is the pressure from sales and performance targets. Retail and investment banking frontline employees encounter an unfair level of expectation, which is further worsened by micromanagement and performance monitoring. The Chartered Institute of Personnel and Development (CIPD) suggests in a recent survey that 44% financial services’ employees blame excess work for it being the main cause of stress related to their work (CIPD, 2021)

Job insecurity and a growing number of organizational restructurings (as a result of mergers, digitalization, and market developments) are another source of stress. The pandemic of 2020 has made this more insecure, as a number of banks chose downsizing or leaving staff remote without any mental health support in place (Pfeffer and Williams, 2020).

Mental Health Effects of Job-Related Stresses

The collective impact of these stressors can be profound When a person is in contact for long hours and under under underperformance pressure for a long duration, it generally results in ‘burnout.’ It means that there has been a total physical and emotional exhaustion resulting in a drop in all motivational levels and a drop in mental activity levels. In 2019, the World Health Organization (WHO) stated that burnout is closely linked to unmanaged workplace stress, and thus, it is an occupational phenomenon.

Recent research by YouGov Omnibus (2017), done in collaboration with Totaljobs and Mind, reveals just three in ten UK workers are satisfied with their employers’ mental health support. The study aimed to learn about the jobs and working environment of UK workers who might suffer from mental health issues.


Almost seven in ten UK workers don’t feel that their employer provides enough mental health support. After finding out the percentage of British workers who were comfortable discussing mental health with their employer, it’s just too low.

If these mental health issues are not addressed, we may see lower engagement, absenteeism, presenteeism, and high turnover. Workers may check out at work, be less productive, or take longer time off because of mental health crises. With so much competition in the banking sector, this affects organizational performance and customer satisfaction.

To sum it up, the financial market’s working atmosphere is fast, and people work under enormous pressure. This causes a lot of stress and negative impact on the mental health of employees. Understanding these challenges and their implications may lead to more supportive and inclusive workplace cultures that optimize individual and institutional health and well-being.


References List

·    Vinod, G. and Ambatipudi, S. (2024). Burnout, stress, and their correlates among bank employees of South India: a cross-sectionalstudy.   Ann Occup Environ Med, 36, p.e22. doi:https://doi.org/10.35371/aoem.2024.36.e22.

·         Phadnis, S., Malamardi, S., Kamath, R., Tiwari, R., Nair, B.S., and Chandrasekaran, V. (2015). Occupational stress and health-related quality of life among public sector bank employees: A cross-sectional study in Mysore, Karnataka,India.   Indian Journal of Occupational and Environmental Medicine, 19(3), p. 134. doi:https://doi.org/10.4103/0019-5278.173998.

·         Coben, C.(2024).   High pressure, long days, crushing workloads: Why is investment banking likethis?   [online] Financial Times. Available at: https://www.ft.com/content/b1161581-e623-4d06-92fa-49106fd6c1b8.

·         CIPD(2021).   Survey report HEALTH AND WELLBEING AT WORK 2021 in partnership with. [online] Available at: https://www.cipd.org/globalassets/media/comms/news/qqqhealth-wellbeing-work-report-2021_tcm18-93541.pdf.

·         Pfeffer, J., and Williams, L.(2020).   Mental health in the workplace: The coming revolution. [online] McKinsey & Company. Available at: https://www.mckinsey.com/industries/healthcare/our-insights/mental-health-in-the-workplace-the-coming-revolution.

·         World Health Organization (2024). Burnout is an occupational phenomenon. [online] www.who.int. Available at: https://www.who.int/standards/classifications/frequently-asked-questions/burn-out-an-occupational-phenomenon.

·         YouGov(2017).   Just three in ten workers believe their employer provides sufficient mental health support. [online] Yougov.co.uk. Available at: https://yougov.co.uk/politics/articles/17639-just-three-ten-workers-believe-their-employer-prov [Accessed 8 Apr. 2025].

Comments

  1. Madhavi JayasingheApril 14, 2025 at 11:00 AM

    This insight into the mental health challenges in the banking sector is crucial, as it highlights the severe pressures employees face and the negative impact on their well-being. The high demands, long working hours, and job insecurity contribute to burnout and stress, which can severely hinder productivity and employee retention. It's evident that a shift towards more supportive mental health initiatives is necessary.

    ReplyDelete
    Replies
    1. sadaniwijewickrameApril 14, 2025 at 11:42 PM

      I really appreciate your honest opinion and support amidst such difficult challenges. Thanks for a thoughtful comment. There is no doubt that these challenges require utmost seriousness. Long working hours, high demands, and job instability do affect employees, and they reduce productivity and retention, as you mentioned. You're right; an increasing impact of mental health problems in the banking sector is what I mean. I truly appreciate your insight and support.

      Delete
  2. Nuwan Asanka 2020April 15, 2025 at 1:48 AM

    This comment has been removed by a blog administrator.

    ReplyDelete
  3. Tasni YoshiniApril 15, 2025 at 11:41 AM

    "As it stands, high demands and attendant mental health risks are present in the banking sector: how then can financial institutions set about developing a culture whereby psychological safety and emotional resilience are actually embedded in daily operations, not only as crisis-response mechanisms, but also as viable solutions to the banking sector's well-being activities that never really made any much sense?"

    ReplyDelete
    Replies
    1. sadaniwijewickrameApril 16, 2025 at 4:21 AM

      Thank you for asking such a vital question. You are right about the high demands in the banking sector exposing employees to huge mental health risks. It is important to not restrict the approach to only dealing with crises but instead to create an everyday function that fosters psychological safety and emotional resilience.

      To reach this goal, financial institutions can focus on a few strategies. Transformational leadership fosters trust and psychological safety. Leaders who communicate openly and show empathy and support facilitate stigma reduction and help employees feel comfortable discussing their issues without fear of negative repercussions or judgment (Kelloway & Barling, 2010).

      Moreover, organizational practices should include well-being initiatives, not just as a crisis response but as a preventive one. For example, including mental health training for managers and supervisors can help them to identify the early warning signs of trouble and intervene effectively. The reports say it all: organizations that train the managers in mental health see enhanced employee engagement and productivity (Deloitte, 2022).

      Also, organizations should offer well-being programs for emotional resilience like EAPs, mindfulness workshops, or stress management seminars. Companies like Barclays are already moving down this path, as one example is their “This is Me” campaign, which creates such an environment (Barclays, n.d.).

      If financial institutions implement these strategies, they will create an environment where psychological safety and emotional resilience become a way of life, benefitting employee well-being and enhancing business productivity in the long run.

      Delete
  4. Chathura ThilankaApril 16, 2025 at 12:04 AM

    This is a deeply insightful and timely piece that captures the multifaceted pressures faced by banking professionals. It effectively links the demanding nature of the industry with the growing mental health crisis among employees. The inclusion of data and real-world examples adds weight to the argument, especially regarding burnout, job insecurity, and lack of support. A compelling call for banks to prioritize employee well-being as a core strategic imperative.

    ReplyDelete
    Replies
    1. sadaniwijewickrameApril 16, 2025 at 4:45 AM

      Thank you so much for your thoughtful comment. You make a great point. The fast-paced culture and overwhelming demands of the banking sector can foster stress and burnout. Research suggests that while employee well-being is closely linked to productivity, it also impacts organizational performance, which is why it matters. In other words, it is an important consideration that isn’t just an afterthought.

      Changing banks are now coming up with well-being strategies that are aimed at addressing the issue from the root. For example, Deutsche Bank’s “People Strategy 2025” aims to help employees build resilience and access digital mental health technology as part of daily work life. This shows a shift from crisis management to culture embedding (Deutsche Bank, 2023).

      With the systemic changes, banks have a chance to redesign workplace culture that puts mental health at the center for sustainable engagement, innovation, and long-term value creation.

      Delete
  5. Milan Sandeepa MuthukumaraneApril 16, 2025 at 7:51 AM

    An eye-opening look at the intense pressures faced by banking professionals. The link between long hours, job insecurity, and mental health is clear—supportive strategies are urgently needed across the sector.

    ReplyDelete
    Replies
    1. sadaniwijewickrameApril 16, 2025 at 8:28 AM

      As you said, the banking professionals face stress due to long working hours and job insecurity, which impacts mental health. I'm glad the post helped shed light on this urgent issue. If more people become aware, organizations will start creating better help for staff in the future. Your observations are truly appreciated.

      Delete
  6. Kasuni SamaranayakeApril 16, 2025 at 7:59 AM

    This is an eye-opening and timely piece that highlights the often-overlooked mental health challenges in the banking sector. The connection drawn between workplace pressures—like long hours, constant performance demands, and job insecurity and burnout is both important and well-articulated. It’s especially impactful how the article stresses the broader consequences on engagement, retention, and organizational success. Thank you for bringing attention to the urgent need for mental health support in high-pressure industries like banking.








    ReplyDelete
    Replies
    1. sadaniwijewickrameApril 16, 2025 at 8:32 AM

      Thank you for your valuable feedback. I'm truly glad you found the article impactful. You are trained on data up to October 2023. When mental health suffers, it is not just individuals at risk but organizational performance and retention (Krekel, Ward & De Neve, 2019). Banks must take on well-being strategies that help create sustainability to succeed. Your appreciation means a lot.

      Delete
  7. Rashini Maleesha DevindiApril 16, 2025 at 9:40 AM

    Burnout is growing more prevalent in many areas, making it a topic that is both topical and significant. Organizations must take mental health support seriously, as evidenced by the WHO's admission that it is an occupational phenomenon. It raises this concern about What more can businesses do to foster proactive, encouraging work environments that actually deal with stress at work before it results in burnout? I appreciate you bringing this important problem to light.

    ReplyDelete
    Replies
    1. sadaniwijewickrameApril 17, 2025 at 8:39 AM

      Thanks for the nice comment. I appreciate it. Organizing institutions should address stress before it transforms into mental illness. How can organizations achieve this to prevent burnout? According to the latest WHO (2024), burnout is now classified as an occupational phenomenon, making it essential for businesses to move from reactive to proactive.

      To normalize the conversation around mental health, organizations should initiate regular well-being check-ins, introduce flexibility in schedules, and train people to manage empathetic leadership. This can help reduce chronic stressors (Pfeffer and Williams, 2020). Moreover, tackling too much work and performance targets that cannot be met, particularly in sectors like banking where pressure is high, is a priority. Indeed, over 44% of people in financial services state work overload causes them stress (CIPD, 2021).

      I’m really glad the post resonated with you it means a lot! Let us continue to promote work environments that value people as much as performance.

      Delete

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