Cost-Free Strategies for CEOs to Boost Employee Mental Health During Financial Hardships

 It is a common myth that employee wellbeing programs tend to evaporate when firms experience a financial downturn. Here are five strategies to boost employees' mental health and wellbeing to sustain higher productivity.

1. Open Communication and Active Listening During Financial Challenges:

Research underscores the power of open communication in shaping a supportive work climate, even in times of financial difficulty. Regularly informing employees about the company's financial situation, coupled with an acceptable recovery roadmap, can significantly reduce employees' anxiety and uncertainty. In many situations, internal employees over external expensive consultants can often have a unique and intimate understanding of their organisation's challenges and dynamics, making them particularly effective at diagnosing problems and proposing solutions so active listening is critical for the CEO. Establishing open channels for employees to voice their concerns and suggestions, such as an open-door policy and regular check-ins, is not just a strategy but a powerful tool for preventing minor issues from escalating into significant mental health problems. As leaders, practising what you preach by caring for your mental health and promoting a supportive climate valued by employees can empower you in fostering a healthier work environment.

2. Job Security and Flexibility Boost Employee Wellbeing and Performance

Research shows job insecurity can motivate workers to improve performance and adhere to company policies. However, the associated stress, frustration, resentment, and exhaustion create a cognitive load that harms employees' mental health, wellbeing and organisational performance. Toyota has historically preferred negotiating pay adjustments, job sharing, or transfers instead of opting for redundancies, which can be costly and demoralising.  Managing expectations and helping employees prioritise tasks can prevent overload and burnout. By setting realistic deadlines and ensuring fair workloads, leaders can protect their employees' mental health while sustaining higher productivity. Flexible working hours and encouraging regular breaks are not just perks but essential in helping employees manage stress and avoid burnout. Work-life balance is crucial for mental health, and providing flexibility shows that the company values their wellbeing, even when financial constraints exist.

3. Building Community and Creativity Through Wellness Workshops and Walking Meetings:

Research shows that a strong sense of community developed through activities such as workshops on stress management, mindfulness, and relaxation techniques can improve morale and provide emotional support, which is vital during challenging times. There is evidence that walking meetings can lead to increases in creative thinking1. The act of walking stimulates our brain, leading to a more relaxed and informal atmosphere that enhances engagement.

4. Leading Through Recognitions and Example:

Research shows that simple gestures of appreciation, such as expressing gratitude for an employee's dedication or flexibility, can go a long way to boost employee morale and motivation without incurring additional costs, during financial challenges. Leaders can also create a culture of peer recognition where employees are encouraged to appreciate each other's contributions. Leaders can inspire their teams by demonstrating commitment, resilience, and a positive attitude during tough times. By sharing their own challenges and how they are navigating them, leaders can foster trust and encourage a collaborative spirit.

5. Disconnect & Thrive: Supporting Mental Health Beyond Work Hours

Establish clear policies that support employees' right to disconnect after work hours. This includes setting expectations for response times and respecting personal time. Encourage employees to disconnect from work-related emails and messages during non-working hours. Recommend free mental health apps, for example, Beyond Blue and free online resources, such as webinars, articles, and podcasts on mental health and wellbeing, offering meditation, mindfulness, and stress management resources.

By implementing these strategies, leaders can maintain and even boost employee morale and motivation without incurring additional costs, which is especially crucial during financial challenges.

-Dr Kumar Biswas, UOW