Open Mike #13: Overworked and Underpaid: The Hidden Mental Health Crisis in the Workplace

While I was working out at the gym this weekend, a gym member on a nearby treadmill sparked up a conversation with me about work. She confessed that, although she’s worked for her current company for 5 years, she’s only gotten one raise, despite three title changes and additional responsibilities. She said her work is interesting and challenging, with plenty of opportunities to utilize her abilities and skills.

And while she really loves her colleagues and work environment, she’s become a bit frustrated with her company for not compensating her adequately based on her research of other positions with similar responsibilities and skillsets. In addition, she told me she lives in a constant state of worry because she barely makes enough money to pay her bills. It was obvious that this struggle was having a huge impact on her mental health.

In the book Wellbeing: The Five Essential Elements, authors Tom Rath and Jim Harther describe the strong connection that exists between financial security and wellbeing, based on their research. Money is a critical component of Maslow’s Hierarchy of Needs because it ensures access to shelter, food, and transportation, which are essential needs that must be met before we can fulfill any other type of needs.

Plus, in addition to meeting our most basic needs, it's also important for us to have money for the things we want and like to do, such as taking family vacations, going on dates, and engaging in rejuvenating hobbies. Once again, I’m reminded of my new gym buddy, who on the surface, seems to be happy with her company, but feels dissatisfied deep down. From my limited outside perspective, it seems like her company’s leadership team doesn’t quite grasp that financial wellbeing still reigns supreme when it comes employee development.

Why Employee Financial Wellbeing Matters

According to the Institute of Policy Studies’ 2022 study, the average gap between CEO and median worker pay is 670 to 1, meaning that CEOs pocket $670 for every $1 workers earn. This has huge ramifications, because it speaks to the economic disparity that workers are encountering within their companies. Although there are plenty of employees who are rightly compensated for their roles and positions, many more are not, which inevitably takes a toll on their mental wellbeing. When employees feel like they are pigeon-holed into an insufficient salary within their company, like my gym buddy, frustration and stress set in — which impact other areas of their career and life, too.

If your organization isn’t getting the best out of your employees, they may have lost motivation due to the fact that they’re not being compensated fairly for their roles, responsibilities, experience and the value they contribute to your company. If an employee invests years within your organization, performs to the best of their abilities, and exceeds your expectations without receiving any opportunities for better financial compensation, eventually they’ll quietly (or vocally) quit.

To add insult to injury, you’ll end up spending the money you “saved” by refusing to give them a raise on training a new hire that may or may not live up to your standards. The good news is that there are plenty of ways you can improve your employees’ financial wellbeing, by communicating clear expectations for future compensation, staying self-aware about the market value of their positions or roles, and scheduling a meeting to explain your company’s compensation system.

Financial Security = Wellbeing

In positive psychology, there are six domains for measuring total wellbeing (or flourishing), including Financial and Material Stability, which is first assessed with these two questions:

• How often do you worry about being able to meet your normal monthly living expenses?

0 = I worry all the time, 10 = I never worry

• How often do you worry about your safety, food, and housing?

0 = I worry all the time, 10 = I never worry

The subject’s answers help us understand whether their financial wellbeing is flourishing — or languishing. While it’s only one aspect of flourishing, financial stability makes up a huge part of an employee’s overall wellbeing.

Overall, financial security is a crucial need that must be addressed before employees can be their best selves. Given the inflation that’s occurred over the last year, plus the all-time rise in housing, food, and gas prices, employees have been forced to reevaluate their financial situations. It’s more critical than ever for organizations to do their part in improving the financial wellbeing of their employees, ensuring that they earn their fair, market value compensation, which will only bring more value to their companies.

As for my friend from the gym, my hope is that she’ll express her concerns about her compensation to her leadership team and continue to thrive within her company. However, if they continue to neglect her financial wellbeing after that conversation, it’s probably time for her to move on to a new company that will pay her what she’s worth.

WORD ON THE STREETS

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Employees are more stressed than ever, and political and economic chaos is a big reason why. A new survey shows that 75% of workers are feeling down, with many saying current events are even more stressful than finances or crime. Nearly the same percentage want their companies to step up and provide real mental health support—especially help in dealing with the anxiety caused by today’s unpredictable world.

While many businesses made mental health a priority during the pandemic, 81% of employees say those efforts are no longer cutting it. People are struggling, and they expect more from their employers.

Key Stats That Matter

• Life feels more unstable than during the pandemic – Nearly half of workers say 2025 feels even more chaotic than the early COVID years.
• Stress from world events is unavoidable – 96% of employees say global news is impacting their mental health, and 74% believe it’s leading to burnout.
• Young workers are at a breaking point – 55% of Gen Z employees say their mental health never recovered from the pandemic, and over 60% would consider quitting if things don’t improve.
• Most workplace mental health efforts feel like empty gestures – 58% of employees say their company’s wellness programs are just for show, and only 36% feel they’re actually helpful.
• Burnout is expensive – Companies are losing $4,000 to $21,000 per employee each year because of stress-related productivity dips.

What Companies Need to Do

1. Go Beyond Basic Mental Health Perks – Offering a meditation app isn’t enough. Employees need real, meaningful support, like mental health days, flexible work schedules, and leadership that actually listens.
2. Acknowledge the Stress of Current Events – People are burned out from the constant chaos in the world. Companies need to create safe spaces for conversations and give employees access to professionals who understand how external stress affects their work and wellbeing.
3. Stop Ignoring the Retention Problem – Younger workers aren’t afraid to walk away from jobs that don’t support their mental health. Companies that don’t step up will struggle with turnover.
4. Make Mental Health a Workplace Priority – Wellbeing should be built into the culture, not treated as a once-a-year initiative. That means setting realistic expectations, encouraging work-life balance, and leading by example.

Employees are telling companies exactly what they need—better mental health support, workplaces that acknowledge real-world stress, and leaders who actually care. If businesses don’t take action, they’ll keep losing good people and hurting their bottom line. The choice is clear: support your team, or risk watching them walk out the door.

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