Money Matters: Recommendations for Financial Stress Research in Occupational Health Psychology

Abstract

Money is arguably the most important resource derived from work and the most important source of stress for contemporary employees. A substantial body of research supports the relationship between access to financial resources and health and well-being, both at individual and aggregated (e.g. national) levels of analysis. Yet, surprisingly little occupational health psychology research has paid attention to financial issues experienced specifically by those in the labour force. With these issues in mind, the overarching goal of the present paper was to address conceptual and measurement issues in the study of objective and subjective aspects of financial stress and review several assessment options available to occupational health psychology researchers for both aspects of financial stress. Where appropriate, we offer guidance to researchers about choices among various financial stress measures and identify issues that require further research attention. Copyright © 2016 John Wiley & Sons, Ltd.

Employees’ financial insecurity and health: The underlying role of stress and work–family conflict appraisals

“…So although the work–family interface helps explain the relationship of financial insecurity and health, the most meaningful appraisal process occurs through perceptions of stress. Our research answers the call from Sinclair and Cheung () to explicitly test the cognitive appraisal framework in a way that sheds light on the unique effects that cognitive evaluations – in our research, evaluations of stress in particular – have on physical and psychological health in a financial context. Thus, occupational health researchers can rely on the evidence from our studies that empirically establish the importance of cognitive evaluations of stress when linking financial insecurity to worker health.…”

“…Aside from our theoretical basis, our focus on the construct of perceived financial insecurity stems from concern surrounding the measurement of financial well‐being. The operationalization of ‘financial well‐being’ has been conceptualized both subjectively (e.g., perceptions of employment uncertainty, perceived ability to pay bills, or unexpected expenses) and objectively (e.g., personal income, unemployment, household income; Sinclair & Cheung, ). The varying strategies for measuring financial well‐being can become problematic when attempting to understand how financial situations influence health.…”

“…Yet, their ability to financially deal with unexpected costs (e.g., car repairs, medical expenses), a subjective indicator of financial insecurity, can be a valid source of negative outcomes. In addition, Sinclair and Cheung () note the importance of distinguishing between cognitive evaluations of, and emotional or affective reactions to, financial situations.…”

Looking to Unemployment and Underemployment Research for Insights on including Financial Variables in Occupational Health Research: A Commentary on Sinclair and Cheung (2016)

“…Sinclair and Cheung's () review calling for efforts to more fully integrate the role of financial stress into occupational health research provides an interesting, almost mirror image, approach to that which evolved in the unemployment, and later underemployment, literature. That is to say, income loss and financial stress are presumed outcomes to job loss and unemployment, with the psychological, physiological and career effects as secondary research avenues.…”

Additional Financial Status Measures to Consider: Commentary on Sinclair and Cheung (2016)

“…Thirdly, they offer numerous practical research recommendations, such as measuring income at the household level, being clear regarding whether income is gross or net of taxes, and using log‐transformed measures given the propensity towards skewness in income distributions. However, the measurement of financial status and financial stress is even more complex and multidimensional than indicated by Sinclair and Cheung (). Here, I describe additional constructs relevant to the measurement of financial status and financial stress and propose the processes/mechanisms by which they affect outcomes.…”