80% Of Employees Stung By Cost Of Living, Mental Health Issues And Burnout Rise, New Survey Reveals

EMA and nib national workplace wellbeing survey shows declining mental and physical health, concerns about family wellbeing, as result of cost-of-living crisis

• The cost-of-living crisis is negatively impacting four in five Kiwis
• Two thirds (64%) are concerned for the mental health and wellbeing of their family
• 56% are worried about their own mental health and wellbeing, with 52% concerned about the risk of burnout at work

New research reveals the impact the cost-of-living crisis is having on New Zealanders, with four in five Kiwi employees (80%) claiming the challenging economic environment has affected them negatively.

The 2024 Workplace Wellbeing survey, powered by the EMA and nib New Zealand (nib), canvassed the views of 1,229 New Zealand workers from 1 May – 22 May 2024, to better understand the challenges facing the local workforce.

Of those who have been negatively impacted by the rising cost of living, 50% claimed negative effects on their mental health, while a quarter (26%) said it had worsened their physical health. This was higher for younger employees, with 63% of those aged 16-30 reporting harm to their mental wellbeing.

In addition, the wellbeing findings reveal shifts from 2022 across the board, highlighting a worrying trend for workers feeling the pressure. These included rising concerns for:

• The mental health and wellbeing of family members (64%, up from 56%)
• Personal mental health and wellbeing (56%, up from 51%)
• Personal health (62%, up from 59%)
• The risk of burnout at work (52%, up from 47%)

“Compared to our previous survey, seeing how many of these concerns have increased is confronting and shows the pressures those in the New Zealand workforce face," says Rob Hennin, Chief Executive at nib New Zealand.

Despite these challenges, the survey also shows that employers are responding, with three in five (61%) respondents saying their workplace proactively manages their wellbeing, an increase from 53% in 2022. Most notably, compared to responses in 2022, fewer employees state they are being impacted by:

• Understaffing (47%, down from 64%)
• Poor work-life balance (36%, down from 42%)
• The pressure to work long hours (34%, down from 39%)

“The current economic environment is hitting both employers and employees hard. Given the challenges many businesses face, it is encouraging to see that employers are stepping up and focussing on the wellbeing of their staff,” says EMA Head of Advocacy Alan McDonald.

“With employees experiencing financial strain, health issues, concerns for the future and more, it’s no surprise that they’re seeking stability in their current workplaces, as well as when they’re seeking a new role. It's clear that when employers take steps to proactively manage wellbeing, employees respond positively, helping to alleviate some of the broader societal pressures.”

Increasing wellbeing support in the workplace

With 22% of Kiwis surveyed having looked for a new job and 17% having looked for a second job in the three months prior to the survey due to financial stressors, there’s an opportunity for employers to offer robust support systems that prioritise employee wellbeing. The importance of Employee Assistance Programmes (EAP) increased 6 percentage points from the last survey (60%, up from 54% in 2022), with a strong importance also seen for wellbeing initiatives and subsidies (72%).

Asked what benefits they look for when switching jobs, 64% of Kiwis said medical and health insurance (up from 57% in 2022), 48% nominated more comprehensive insurance such as income protection illness cover, 43% said life insurance and 26% said they would like more than the mandated parental leave.

"There’s no better time than now for employers to stand up and proactively support their teams' mental and physical health, empowering them to perform at their best knowing there’s someone in their corner no matter what happens. Fostering this positive workplace culture starts from the top down, so it’s just as important for business leaders to embody these values in their day-to-day,” adds Hennin.

McDonald says the EMA is focussed on supporting both its members and the wider business community through the current economic challenges.

“The most important asset for any business is its people. That is why this survey is so important in helping employers understand what might be going on with their team and consider how to respond.

“We’ve got a range of resources, tools and learning programmes that are designed to help small to medium businesses drill down into the challenges and identify the right solution for them,” he says.

About nib New Zealand:

nib’s purpose is your better health and wellbeing. We’re here to help Kiwis and their families live healthier, happier, financially secure lives, and to help local businesses who want to protect their employees. We do this by offering insurance that’s easy to use and affordable while also helping connect our members to the right tools and services to improve their health and wellbeing.

About the EMA:

The EMA is New Zealand’s largest business service organisation dedicated to helping people and businesses grow. It offers advice, learning, advocacy and support for more than 7,600 businesses as members of the EMA, ExportNZ and The EMA’s Manufacturers Network. The EMA is part of the BusinessNZ Network and its territory spans the upper North Island. The EMA also offers many of its services nationally to member businesses, and through its partners.

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