It seems as though in these economic times, people's mental health is plummeting along with the stock market. With record-high unemployment rates, foreclosures, bankruptcies, shrinking retirement accounts, and marital breakdowns, more and more people are experiencing overwhelming stress levels as a direct result of personal and national finances.

This heightened financial stress has led to a syndrome many have begun to call "recession depression". Common symptoms include severe distress, sleepless nights, short tempers, increased irritability and chronic worry, all of which lead to increased absenteeism, poor employee health and decreased productivity at the workplace. A recent study concluded that up to 80% of financially distressed workers spend time at work worrying about personal finances and dealing with financial issues. (Read the Sept. 1 EBN for additional coverage on recession depression.)

The latest research from Financial Literacy Partners shows that employees spend approximately 20 hours per month distracted from work due to financial difficulties, costing employers an average of $7,000 per employee per year in lost productivity.

So what steps can employers take now to conquer recession depression at the workplace and ensure their workforce is not only in a good position to survive this recession, but ultimately succeed through the inevitable economic turnaround?

To minimize losses as a result of recession depression, employers need to efficiently and cost-effectively address the root causes of financial stress - employees' major life events, lack of financial literacy and psychological concerns - by carefully aligning benefits with business strategy.

Even as corporations deal with greater workloads and leaner workforces, primary business goals remain the same: retention, cost control and productivity. Specialty benefits services, such as employee assistance programs, work/life and wellness, should serve as a tool to help achieve these long-term business goals.

The EAP provides confidential counseling, employee and management training and work/life services such as legal and financial consultation, all of which impact the causes of financial distress.

Calls to EAPs during these tough economic times have spiked dramatically, but EAPs offer measurable results. For example, in a study of 436 employees who had used a financial adviser through a referral from an EAP:

• 91% of the workers found the intervention to be effective.
• 74% had reduced stress.
• 67% had improved health and well-being.
• 39% had less work absenteeism.
• 36% had improved productivity.

Financially stressed individuals tend to eat poorly, exercise less, sleep less soundly, turn to unhealthy coping behaviors such as excess drinking, substance abuse and gambling, and may forgo necessary checkups because they want to save money.

Now that stress levels and health risks are at all-time highs, a wellness program in combination with EAP counseling and stress management solutions can greatly reduce unnecessary health care costs and improve productivity.

But in a time when companies are cutting costs, what should they do when a wellness program reports low utilization? Before scrapping the program altogether, employers need to take a careful look at their outreach and communication strategies. Is there a clear benefit communication strategy? Do employees know how to access the wellness program? Do they know about the incentives? Employers need to carefully assess their employee population and provide wellness education, incentives and programs that truly motivate their employees to take better care of their health.

Keep communicating

None of these benefit strategies will work unless the company communication policy is open, frequent and effective.

In a time when people could really use an emotional stimulus package, it's more important than ever for employers to monitor the mental well-being of their staff. Providing confidential counseling services through an EAP is the best way to help your workforce better manage these life issues and stay more focused and motivated while on the job.

The corporation that stays committed to employee health and well-being during these tough economic times will be rewarded with a healthier bottom line and a more viable future.