It is hard to read, watch, or scroll through the news today without recognizing that the U.S. economy is in a state of uncertainty following the COVID-19 pandemic. While some experts are divided on whether an official recession is in our future, people nationwide are dealing with inflation's impact on fundamentals. According to recent data, the Consumer Price Index rose 9.1% from a year ago, with some of the biggest price increases in food, rent, and gasoline. On top of this, employers are seeing a significant rise in health care costs and some corporations are facing tightening budgets and layoffs, despite historic lows in unemployment.

While business professionals do plan for future economic white waters, it is critical for HR and benefits professionals to proactively plan for the impact this uncertainty can have on their workforce and company culture. Financial stress can affect employee mental health, productivity, and retention, which can contribute to an overall undesirable environment. Despite these negative indicators, HR leaders have opportunities to engage and support their employees, encourage them to be present and productive, and feel better about their circumstances. Here are three key ways HR leaders can address these issues and improve financial wellbeing among their workforce during times of economic uncertainty, and improve overall wellbeing in the process.

Recognize and address mental health concerns

Most HR leaders recognize the impact that burnout and exhaustion can have on employee mental health. Data shows that 42% of U.S. adults feel that money has a negative effect on their mental health as well, making them feel stressed, anxious, and overwhelmed. These challenges can make it difficult for employees to feel motivated, satisfied, or present at work and ultimately lead to lower levels of productivity, attendance, and engagement. Those that are already financially stressed are likely to be even more anxious if or when the country experiences another recession.