Financial pressure the most consistent predictors of strain across New Zealand
This article was created in partnership with TELUS Health.
As we head on into 2026, financial worries continue to plague employees both at work and at home. Findings from the latest TELUS Health Mental Health Barometer show that financial pressure sits within a wider pattern of strain across New Zealand. Forty-one percent of workers report constant stress, with younger employees and women consistently recording lower mental health scores than the national average.
In a recent interview with HRD, Ghazal Lahooti, Manager Clinical Delivery at TELUS Health, revealed that these financial pressures are increasingly showing up in the workplace, contributing to stress, reduced wellbeing and a higher risk of burnout.
“When we look at the data from TELUS’s Mental Health Barometer, financial pressure is one of the most consistent predictors of strain across New Zealand. It’s the same data month after month, the same pattern, because people are reporting financial insecurity and difficulty meeting basic expenses. Those are all things that score really low on mental health and productivity indicators.”
Younger workers more financially stressed
That daily reality, of waking to rising costs, uncertainty around housing and increasing everyday expenses means many workers are already mentally drained before reaching their desks.
“From a clinical perspective, when somebody's already waking up worried about housing, grocery costs, unexpected bills even before the day has started in the workplace, they may already be feeling drained before the day begins.
Here, Lahooti emphasised that this depletion harms not just emotional wellbeing, but core workplace capabilities - concentration, focus, problem-solving and decision-making.
“Their cognitive and emotional resources are down even before they jump onto the first Teams meeting,” she told HRD. “And if we look at that from different generations in the workplace, it’s the younger workers who’re feeling it more intensely.”
Young workers, already grappling with insecure work, high housing costs, and limited savings, are entering the day with far less emotional and financial buffer than previous generations. In New Zealand, workers under 40 are disproportionately affected. Barometer data shows they are significantly more likely to face constant stress and struggle with motivation at work, reflecting the compounding pressures of housing costs, rising debt and slower financial stability early in their careers.
Why? Well, as Lahooti told HRD, this generation are grappling with higher living costs compounded by lower savings.
“Their work can feel less secure, which reduces their sense of control and stability.”
The result is a workforce showing early signs of fatigue, reduced focus and changes in engagement, often appearing well before more serious burnout emerges. These pressures naturally surface at work, shaping motivation, concentration and overall energy levels across teams.
And while employers can’t fix inflation or housing affordability, Lahooti pointed out that organisations have enormous influence over one crucial factor - vulnerability within the workplace. Because, as the data shows, employees feel significantly better even without improved finances when they feel supported, informed and connected to practical resources. That means employers must go beyond traditional EAP promotion and explicitly highlight the financial wellbeing support embedded within those programs.
Mental Health Index findings make this link even clearer: employees without emergency savings record mental health scores 17 points below the national average and 26 points below those with savings buffers. Financial insecurity isn’t an abstract stressor - it has a measurable impact on wellbeing and workplace functioning.
“Financial counselling is so undervalued,” she told HRD. “But financial resources [can help] in many ways around how to manage crises but also how to build a sense of personal control so that employees have things they can fall back on.”
Red flags your employee is financially stressed
And just as essential is cultivating psychological safety. Many employees fear disclosing financial stress to supervisors – as such, normalising these conversations can be transformational, not just for employee wellbeing but for organisational culture at large.
As Lahooti went on to tell HRD, there’s now substantial evidence that strong financial wellbeing offerings directly improve morale, reduce absenteeism, and support retention. What’s more, that organisations offering financial counselling through their EAPs see markedly better outcomes.
“With our clients, we see really strong results when organisations offer financial counselling through EAPs - that’s a massive factor. [Ultimately], it’s not just about the mental health aspect, it’s about also having access to all parts the EAP - particularly the financial coaching aspect. This will also lead to fewer stress-related absences and lower absenteeism overall.”
For HR leaders, it becomes a question of how can they spot the signs of financial stress in their employees and make proactive steps to actually help resolve the issues. As Lahooti told HRD, these signs often emerge as subtle but consistent shifts in an employee’s daily patterns. These changes may include:
- lapses in concentration
- rising fatigue
- increased errors
- reduced availability
- unusual patterns of leave
- sudden overtime requests
- increased questions about pay cycles
“There may be a sudden disengagement or a disconnect,” added Lahooti. “You may notice levels of fatigue, in shifts of availability or in sudden leave or unusual leave. Here, anything we do as leaders should be about a compassionate connetion. It's about engaging and responding and being really relational, so you understand what's happening for your staff.”
How TELUS Health can help you support your people
Recognising financial stress, however, is only the first step. To really make a difference, HR teams must proactively partner with their EAP provider to tailor support to their specific workforce.
“ When an employee reaches out about financial stress, the process always starts with a conversation to understand what they’re experiencing and what kind of support will help most.
We have a lot of training that we offer, as well as education sessions on budgeting and planning, webinars and engaging a whole network of support. For employees who identify with Māori values or practices, TELUS Health also offers Rongoā Māori support options — ensuring care is culturally grounded and respectful.”
And this support really can’t come soon enough. According to TELUS’s report, 42% of New Zealand workers want to improve their financial management, but 21% of those have not made any progress towards their goal.
“Each of your employment groups within an organisation are going to face this differently,” added Lahooti. “Their stresses might be connected very much with both - but linking in with your staff and offering some of these options really is going to then give them some better tools and coping skills as well.”
New Zealand’s Mental Health Index consistently shows that visible, trustworthy support from employers correlates with significantly higher mental health scores. As financial pressure intensifies, this connection becomes even more important for organisations aiming to stabilise wellbeing and maintain engagement.
