Understanding the Issue

Employee stress is a common HR concern in the workplace and for good reason. Stress is a part of everyday life for most Australians and at its most basic form, actually plays an important evolutionary role. However, while stress can have some benefits, too much of it can negatively affect individuals’ mental health. Stress comes in various forms including social, organisational, and physical. But a recent report from Beyond Blue stated that in 2023, 37% of Australians identified cost of living pressure as the most significant factor harming their mental health. This highlights how financial stress is becoming more prevalent for today’s employees and underscores the growing importance for HR to help address this issue.

Why employers should care

Employee satisfaction is crucial, especially in competitive industries where building an advantage is key. On the other hand, any kind of stress, including financial stress, can lead to absenteeism, reduced productivity, and a negative work environment, all of which can harm organisational success. Given that financial stress is currently the leading stressor for Australians, what’s stopping organisations from addressing it for their employees?

By supporting financial wellness, employers can help employees feel more secure and focused. This not only boosts morale and job satisfaction but also results in higher company loyalty. When employers invest in their employees’ financial health, it benefits both the individual and the organisation, leading to a more productive and engaged workforce.

As the cost of living continues to rise, so too will financial stress. Increasing wages is an obvious solution, however it’s not always feasible given the rising costs businesses also face. So, what other options are available?

Let’s start with the basics

A significant source of financial stress is a lack of financial education. A great first step is to offer a financial wellness program through an external vendor. For instance, The Money Collective is a great Australian resource for this, visit their website at themoneycollective.com.au/workplace-wellbeing.

Another easy strategy to implement is to create a resource hub of free publicly available tools for employees to use. This way employees can access these resources in their own time.

Flexible work arrangements are another often-discussed topic, especially post-COVID. While the pros and cons of these arrangements are well-known, their potential to address financial stress is often overlooked. Offering flexible work hours or telecommuting options can ease financial burdens by acknowledging the high costs of commuting and childcare in Australia. This approach not only demonstrates an understanding of employee needs but also helps reduce their financial strain.

These are three basic ways to address this financial stress, and they are all relatively easy to implement. But what will have the most significant impact? What can truly alleviate financial stress, not just for your employees, but also for their entire families as well?

Using Corporate Private Health Insurance Programs to address financial stress

The cost of healthcare is a significant contributor to financial stress for individuals and families. Although Australia has one of the best healthcare systems globally, certain aspects of healthcare can still be costly. While Medicare covers many services, there is often a wide variety of out-of-hospital procedures it does not cover, such as dental and optical care.

Corporate private health insurance programs not only provide employees with access to comprehensive healthcare but also offer a genuine solution to addressing financial stress in the workplace. However, there is a common misconception that these programs are expensive for organisations. At Navy Health, we’re here to dispel that notion and demonstrate how corporate health insurance can be both affordable, accessible, and advantageous.

Navy Health offers companies the flexibility to choose from three types of corporate policies: fully funded, partially funded, and self-funded. These options serve as the foundation, that then enables organisations to tailor their cover to meet both their financial considerations while addressing employee financial stress.

Another misconception is that organisations need to provide top-tier cover for both hospital and extras to see benefits. However, even our basic level of extras, thanks to our restricted fund status, offers substantial support for out-of-hospital preventive healthcare. Preventive care is particularly beneficial because it encourages regular check-ups, screenings, and vaccinations. By detecting potential health issues early, companies can reduce the likelihood of serious illnesses, which can lead to prolonged absences and high medical costs. This proactive approach not only supports long-term health but also shows a company’s commitment to employee well-being, boosting morale and loyalty.

To learn more about our corporate programs, you can contact our Corporate Relationships Partner through our website. Additionally, you can read our article, “Corporate Private Health Insurance Programs Don’t Have to Be Expensive,” for a detailed breakdown of how these programs can work for your company.

Disclaimer

The information in this article is for general information only. Navy Health is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information in this article relates to your unique circumstances. Navy Health is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.

1. Wake, A., & O’Donnell, A. W. (2024). Longitudinal Relationships Between Financial Stress, Career Related Optimism, and Psychological Distress During Emerging Adulthood in Australia. Youth & Society, 0(0). https://doi.org/10.1177/0044118X241232997
2. R.M. Nesse, S. Bhatnagar, B. Ellis, (2016). Evolutionary Origins and Functions of the Stress Response System. Academic Press, Chapter 11, Pages 95-101. https://doi.org/10.1016/B978-0-12-800951-2.00011-X.
3. https://static1.squarespace.com/static/5d807695b3910952ecba755b/t/64cc68a13649633db422ddcd/1691117732556/BeyondBlueServicesGuideforFinancialandMentalWellbeing.pdf
4. https://www.healthdirect.gov.au/financial-stress