The ripple effect of uncertainty in the workplace

Today, World Mental Health Day serves as a timely reminder of how volatility and unpredictability in the workplace can significantly impact employee mental health. In financial services, where markets shift rapidly and the stakes are high, uncertainty is an inherent part of the job. But a new global study from HSBC, Seizing Uncertainty, reveals that the psychological toll on employees is reaching critical levels—impacting decision-making and contributing to a broader crisis of mental wellbeing across industries.

The report, which surveyed over 17,000 individuals across 12 markets, found that nearly half (48%) of respondents have experienced heightened feelings of stress and anxiety over the past five years, with more than half (52%) expecting these pressures to increase in the coming years​. The implications are far-reaching for financial services and fintech firms, where the ability to make sound decisions under pressure is not just a skill—it’s a necessity. Yet, many employees feel increasingly ill-equipped to navigate these demands, with 53% of respondents saying they lack confidence in their decision-making abilities​.

Decision Paralysis: a growing threat to workplace productivity

HSBC’s research points to a phenomenon it terms “decision paralysis,” where uncertainty leads to a lack of decisive action. Approximately 26% of those surveyed reported experiencing this paralysis when faced with complex decisions, often due to fear of making the wrong choice. This issue is particularly pronounced in finance, where decisions can have wide-ranging impacts on portfolios, company strategy, and client relationships.

One of the more worrying trends is that even experienced professionals are affected. The report notes that over a third (36%) of business leaders admitted that uncertainty prevents them from living a full life, and 67% wish they could tackle decisions more effectively. This lack of confidence can undermine strategic thinking and exacerbate stress levels, making it harder to perform in high-stakes environments​.

Professor David Tuckett, Director of the UCL Centre for the Study of Decision-Making Uncertainty, who acted as the academic advisor for HSBC’s study, captures this sentiment well: “Across the world, change and uncertainty are the norm, not the exception. In this context of radical uncertainty, individuals, businesses, and economies are facing heightened complexity and constant disruption.”​

The mental health cost of uncertainty

With mental health under the spotlight on World Mental Health Day, it’s essential to address how uncertainty in the workplace can trigger a cascade of psychological challenges. For employees, continuous ambiguity can erode self-confidence and lead to chronic stress, anxiety, and even burnout. The financial services sector is particularly vulnerable, given its fast-paced, high-pressure nature.

Katie Wilkins, Global Head of International Propositions at HSBC, emphasises the emotional toll: “The possibilities that come with big life moments can often feel overwhelming instead of exciting, particularly when faced with so much uncertainty.”​

This situation is not limited to those on the front lines. Senior executives, often seen as the pillars of organisational stability, are not immune to these pressures. Many report struggling with decision fatigue and a sense of detachment from their work as a result of prolonged stress. The study found that 42% of business leaders put off making decisions because of discomfort, and 50% frequently feel regret over missed opportunities​.

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Building resilience: a strategic priority for fintech

Given the intrinsic volatility of financial markets, it’s unlikely that uncertainty will ever be fully eliminated. Instead, financial services firms must focus on building resilience among their teams to mitigate the negative impacts on mental health and productivity. HSBC’s report identifies two crucial pillars for effective decision-making: mindset and method.

The first pillar, ‘Mindset,’ involves cultivating a positive attitude towards change, a willingness to fail, and an openness to new perspectives. This resilience is crucial for financial professionals who must frequently adapt their strategies in response to market fluctuations. As the report notes, an optimal mindset includes the capacity to see uncertainty as an opportunity rather than a threat, a skill that becomes a valuable asset in times of crisis​.

The second pillar, ‘Method,’ is about combining analytical skills (‘Head’), social support networks (‘Network’), and intuitive judgement (‘Heart’) to create a structured approach to decision-making. For finance professionals, this means using data and insights to inform decisions while also leveraging the collective knowledge of peers and mentors to stress-test strategies​.

“Building this kind of decision-making confidence requires more than just access to information,” adds Professor Tuckett. “It’s about fostering an environment where people feel supported and are encouraged to make decisions even when they don’t have all the answers.”​

Addressing the gender and generational divide

The study also highlights notable differences in how demographic groups experience and cope with uncertainty. Women, for example, are more likely to experience stress and anxiety due to uncertainty, especially when balancing professional and personal responsibilities. Younger employees, particularly Millennials and Gen Z, report higher levels of decision paralysis compared to their older colleagues. This suggests that while resilience might develop with experience, targeted support is needed for younger professionals who are still building their confidence​.

For fintech firms, this means taking a tailored approach to employee wellbeing that considers the unique challenges faced by different groups. Encouraging mentorship, providing access to mental health resources, and fostering a culture that normalises open discussions about stress can go a long way in addressing these disparities.

A call to action for financial services leaders

In a sector where clarity and precision are paramount, the rising tide of uncertainty poses a significant risk to both employee wellbeing and organisational performance. Addressing this challenge will require more than reactive measures; it demands a proactive strategy that equips employees with the mental tools to thrive amid unpredictability.

Providing structured support, investing in decision-making training, and promoting a culture of resilience are not just ‘nice-to-haves’—they are strategic necessities. As Professor Tuckett rightly puts it: “Empowering more people to be confident when making decisions will be a key factor in extending opportunities and building a fairer and more prosperous society.”

In a world where change is the only constant, firms that prioritise mental health will not only navigate uncertainty more effectively—they’ll lead the way in building a more resilient and engaged workforce.

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