‘When employees are worried about making ends meet, the resulting stress follows them to work, both emotionally and cognitively’
More than half of New Zealand employees are burdened by financial stress, and this has major implications for workplace productivity and mental health, according to one expert.
Overall, 54% of employees cited financial concerns as their primary source of personal stress, while 31% admitted their mental health was affecting their productivity, reports TELUS Health.
“When employees are worried about making ends meet, the resulting stress follows them to work, both emotionally and cognitively,” Julie Cressey, general manager of TELUS Health New Zealand, tells HRD via email.
She noted that 37% of workers feel anxious, 34% feel isolated, and 30% feel depressed.
“With up to 40% of the employees feeling overwhelmed by their responsibilities, younger workers and parents are being hit the hardest,” says Cressey.
“This, in turn, will reflect in a workforce that struggles to stay present and engaged as they continue to be stressed by both financial and caregiving responsibilities. In short, financial stress is eroding wellbeing and dulling the edge of workplace productivity.”
The TELUS Health study also notes that two in five workers reportedly have no emergency savings, based on a survey of 1,000 employed New Zealanders conducted between 14 and 27 March 2025.
This leaves many in a vulnerable financial position, particularly amid ongoing economic uncertainty and technological disruption, says Cressey.
“In today’s economy, having no emergency savings can be a precarious financial position. Beyond rising costs and redundancies, employees are also grappling with concerns such as the relevance of their skills as technology reshapes industries.
“The stressors of job instability in a fast-changing economy and pressure to stay competitive in a shrinking talent pool are real. Without a financial cushion, these can amplify stress levels and reduce an individual’s ability to focus, contribute, and perform — impacting both personal and organisational resilience.”
Burnout and job security fears are also rising among New Zealand workers, according to previous reports.
“Declining employee mental health drives up absenteeism and presenteeism, where burned-out employees show up physically but underperform, as well as employee churn. This disengagement quietly impacts the bottom line, also resulting in hidden costs they can’t afford to ignore,” says Cressey.
“Rising unemployment in the market has also contributed to job security concerns amid growing financial uncertainty. This has resulted in even the previously high-performing employees feeling the combined pressures of these stresses, further contributing to the decline in performance and productivity.”
Cressey emphasises the importance of embedding wellbeing into company culture and values, noting that employees are more likely to thrive in environments where they feel supported.
“When companies embed wellbeing into their core values, it signals a genuine, long-term commitment to their people. It fosters a culture where they can feel safe, supported, and empowered to thrive.”
Employers and managers must recognise that every employee’s needs are different, she says.
“By offering flexible, inclusive support systems that cover the full range of wellbeing, including access to mental health tools, EAP services, and financial counselling, the workforce's mental health can improve, and productivity at work can be boosted. This will enable companies to reap the benefits of having happy, healthy employees and equip them to attract and retain top talent.”
She notes that “holistic support” begins with “a thorough understanding of the diverse needs, pressures, and practical experiences of the workforce.”
“Employees are navigating complex challenges that span multiple dimensions, including mental, physical, financial, and cultural. Companies need to understand that inclusivity and cultural relevance are also critical,” says Cressey.
“Flexible work arrangements, frameworks to address violence and harassment at work, and policies that recognise and protect psychological health are among the many avenues organisations can employ to manage psychosocial risks in the workplace.”
