November 14th 2022 – the vast majority of Business Leaders are wary of the effect of rising interest rates on their staff’s mental health. 87% of sector leaders believe that interest rates will have at least some impact on their employees’ mental health; with 32% of the opinion that it will have a significant impact.
“Staff are showing signs of significant concern and anxiety about the growing costs of living for themselves individually and the pressure it’s putting on organisations.” shared one CEO working in tertiary education.
This is very much in tune with the general public consensus that the cost of living crisis will damage our society in a variety of ways. This CEO went on to comment that the “effects of the current economic challenge are reaching wider and deeper than we have known previously” and it is these damaging effects which are felt by staff.
The ‘stress’ was also recognised by an Institute Director who said – “Even before last week’s base rate increase, concerns about the cost of living had become the single biggest issue for our colleagues (based on both their survey and informal feedback) – and the latest change will only have amplified that.”
And feeling it on the ground was echoed by this Business leader from the Communications industry – “I’ve had conversations with colleagues who need to remortgage, and I’ve heard so real (horror) stories around trying to find an extra c£700/850 a month for mortgage payments.”
The increase in mortgage rates is an area that will affect the majority of staff, 80% of whom, in one Media company, have mortgages. There can be little doubt that a tough time lies ahead and “at a time when staff can little afford it.”
What impact, if at all, will the latest interest rate rise have on your staff’s mental health?