Industry
Mental health in financial services: a guide for employers
Financial services is a demanding sector. Regulatory scrutiny, high targets, complex work and difficult conversations with customers all put pressure on staff, from claims handlers and contact centre teams to advisers, analysts and senior managers. Yet many people working in banking, finance and insurance still find it hard to talk about their mental health.
This guide is for HR teams, leaders and wellbeing leads in banks, building societies, insurers, brokers, wealth managers and other financial services firms. It explains what affects mental health in the sector and the practical steps employers can take to support their people.
Key takeaways
Stress is rising: 82% of UK insurance professionals say their stress and anxiety have increased over the past year, and 84% say their workload has grown (AXIS and The Harris Poll, 2025).
People aren’t talking: 87% of UK insurance professionals believe mental health isn’t discussed enough in their industry.
Benefits aren’t always working: 46% of UK respondents said their employer’s benefits didn’t help them manage stress and anxiety
Customer-facing work carries an emotional load: Supporting customers in vulnerable circumstances, a key focus of the FCA’s Consumer Duty, can be emotionally demanding for frontline staff.
Workplace design matters: 88% of firms in the FCA’s 2025 review had adjusted targets such as call times and case volumes to support vulnerable customers, a change that can also ease pressure on staff.
Why mental health matters in financial services
Mental ill health is the most common cause of long-term absence among UK employers (CIPD, 2025), and poor mental health costs UK employers an estimated £51 billion a year, mostly through presenteeism (Deloitte, 2024).
In financial services, the effects are felt quickly. Stressed or exhausted staff are more likely to make errors, and in a regulated environment mistakes can be costly for customers and firms alike. Poor mental health also affects retention in a sector where experienced, qualified people are hard to replace.
What affects mental health in financial services?
Workload and targets
High volumes of work, sales or productivity targets and tight service levels can leave little room to recover, especially during busy periods.
Regulation and accountability
Working in a regulated environment brings constant scrutiny, compliance requirements and personal accountability. Audits, regulatory reviews and reporting deadlines add to the pressure.
Difficult customer conversations
Claims handlers, collections teams, complaints staff and contact centre agents regularly speak to customers who are distressed, bereaved, in financial difficulty or angry. Under the FCA’s Consumer Duty, firms are expected to give customers in vulnerable circumstances the right support, which makes the role of frontline staff more important, and often more emotionally demanding.
Peak periods and market volatility
Year-end, renewals, audit cycles and market turbulence create intense periods of pressure that can be hard to sustain.
Long hours and an “always on” culture
In some parts of the sector, long hours and constant availability are seen as normal. Without boundaries, this can quickly lead to burnout.
Stigma
In a sector that values resilience and performance, many people worry that admitting to stress will affect how they are seen or their career progression. As a result, they often wait too long to ask for help.
Signs that someone may be struggling
Managers and colleagues are often the first to notice changes. Look out for:
Working longer hours but achieving less
More errors or difficulty concentrating
Irritability, withdrawal or low mood
Increased absence or lateness
Signs of exhaustion or seeming overwhelmed
Avoiding certain calls, customers or tasks
A change in behaviour is a good reason for a private, supportive conversation.
What are employers’ legal duties?
All UK employers have a legal duty to protect the health, safety and welfare of their employees, including their mental health. Under health and safety law, firms must assess the risk of work-related stress and take reasonable steps to reduce it. The HSE Management Standards provide a framework covering six areas: demands, control, support, relationships, role and change.
Employers must also make reasonable adjustments for staff whose mental health condition counts as a disability under the Equality Act 2010.
How financial services firms can support mental health
Review targets and workloads
Check that targets, call times and case volumes are realistic, especially for teams handling complex or emotional cases. Firms that have adjusted targets to give vulnerable customers more time should consider the positive effect this can have on staff too.
Support customer-facing teams
Give claims, complaints, collections and contact centre staff training on handling difficult conversations, regular debriefs and time to recover after distressing calls. Make sure they know how to access confidential support.
Plan for peak periods
Plan resourcing ahead of year-end, renewals and audit cycles, set clear priorities and build in recovery time afterwards.
Train managers
Line managers need the skills to spot the signs of stress, have supportive conversations and signpost help. Our HR advice for managers can support managers with more complex situations.
Tackle stigma from the top
When senior leaders talk openly about mental health, it signals that asking for help won’t harm anyone’s career. Make it clear that support is confidential.
Set healthy boundaries
Encourage people to take breaks, use their annual leave and switch off outside working hours. Leaders who model this behaviour make it easier for others to follow.
Make sure benefits actually help
Many employees say their benefits don’t help them manage stress. Review what you offer, ask staff what they need and make sure people know how to use the support available.
For a wider framework, see our step-by-step guide to building an employee wellbeing strategy.
How Wisdom Wellbeing supports financial services firms
Our finance and insurance sector EAP is designed for regulated, high-pressure roles, and gives your people:
24/7 confidential counselling and emotional support
Critical incident support after distressing events
Computerised CBT programmes for stress, anxiety and low mood
Legal and financial information
Wellbeing resources through the Wisdom app
A management support line for leaders
Find out more about our EAP for finance and insurance or book a free demo.
Frequently asked questions
What causes stress in financial services?
Common causes include heavy workloads and targets, regulatory pressure and accountability, difficult customer conversations, peak periods such as year-end and renewals, long hours and an “always on” culture. Stigma can also stop people asking for help early.
Why don’t people in financial services talk about mental health?
Many worry that admitting to stress will affect how they are seen or their career progression. A culture that values resilience and performance can make it harder to speak up. Leaders who talk openly about mental health help change this.
How can firms support staff who deal with vulnerable customers?
Provide training on difficult conversations, set realistic call times and case volumes, hold regular debriefs and give staff time to recover after distressing calls. Make sure they can access confidential support at any time.
What legal duties do financial services firms have for staff mental health?
Firms must assess and reduce the risk of work-related stress under health and safety law, and make reasonable adjustments for employees whose mental health condition counts as a disability under the Equality Act 2010.
Wisdom Wellbeing
Wisdom Wellbeing provides clinically led Employee Assistance Programmes to organisations across the UK and Ireland. Specialising in mental health and wellbeing, we publish practical guidance for employees, employers and business owners, including articles written by our counsellors to offer expertise from a clinical perspective. We also write for students at college and university who want to improve and maintain their mental wellbeing.
Support your employees with an EAP
With an Employee Assistance Programme (EAP) from Wisdom Wellbeing, we can offer you practical advice and support when it comes to dealing with workplace stress and anxiety issues.
Our EAP service provides guidance and supports your employees with their mental health in the workplace and at home. We can help you create a safe, productive workspace that supports all.
