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It is hard not to know that interest rates are rising. It is on the nightly news, the radio stations, and all over social media as mortgage brokers ask for your business.

It is a topic on my mind as our mortgage is up for renewal in October and we are facing a hike in rates and this means more money to the bank, and less money in my pocket.

Last month when I inquired about renewal rates, just as many of your employees are doing. Naturally the rate was higher but if I signed right away, I could lock in this new higher rate and avoid any further hikes.

"I'll take my chances" I said. Besides, how fast will these rates go up. I should be good for a while ... right?

Wrong. A month later I inquire again, and the rates have jumped from 4.9 to 5.29.

Shit. So for fear of further hikes, I locked in at the 5.29 and my payments increase nearly $200 a month and I immediately begin thinking of all the ways this will impact me and my family.

Stress rises. Focus shifts. Productivity drops.

Questions start to surface in the space I am supposed to be working.

Why do I share my personal story?

Because the rising interest rates affect everything for me and the same is happening for you and your employees.

They are having similar questions around their own financial safety, and these questions are impacting the workplace. As a leader, it is your job to not only be aware of what is happening inside the organization, it is also about recognizing the external factors that threaten the effectiveness of your team.

We know work life and home life are deeply intertwined and what happens at home affects work and vice versa and leaders must be aware of how rising bank rates can have several indirect effects on workplace relationships.

Organizations may experience a rise in interpersonal problems, unresolved conflict, and workplace bullying. As employees worry about how they will feed their own family, pay the electric bill, or participate in those pay for your own lunch team building events, their stress levels rise.

While the impact may vary depending on the employee's specific circumstances, here are three ways rising bank rates may be impacting your workplace:

We have all felt the pinch of not having enough money to cover costs from time to time and now with increasing taxes, costs of living and rising interest rates, some of your employees may be teetering on the edge of financial ruin.

Financial concerns, such as increased mortgage payments or higher costs of borrowing, can affect employees' overall well-being and potentially impact their productivity and focus at work.

This stress may also spill over into workplace relationships, leading to increased tension, conflict and bullying among colleagues.

Employees know that if their personal costs of living are rising, the cost of doing business is also rising and this may lead to concerns around job security as organizations now face uncertainty around their financial health.

Conversations around cost-cutting measures, wage freezes, loss of bonuses and potential layoffs can create anxiety and strain in workplace relationships, as employees may feel less secure and less satisfied with their work conditions.

Leaders are not immune to the challenges of rising costs as they navigate the impact of changing interest rates and the influence on the broader economic environment and business performance, which can, in turn, impact organizational culture and morale.

If rising rates lead to financial challenges for the company, there may be a shift in the overall focus, atmosphere and attitude within the workplace. Uncertainty or negative sentiment can affect employee morale, teamwork, and collaboration, potentially straining workplace relationships.

It's important to note that the specific impact of rising bank rates on workplace relationships will depend on various factors, including the nature of the business, the overall economic context, and the specific measures taken by the organization to mitigate potential challenges.

Rising interest rates is only one example of how changes in the external environment can seep into the workplace and create more tension. Creating opportunities for open communication is a key strategy to finding out how you can help your employees.

Your employees will be at different stages. Some may have just had a sharp increase in their mortgage payments while others are secure for several more years.

Here are three things you can do today to help build a community of support in your organization

Leaders can take an active role in creating a psychologically safe environment to foster open communication around financial health.

Notice what people are talking about in both formal meetings and informal settings. Are they joking about eating left overs? Stressed about finding someone to drive their child to their sporting event? These are indicators that external factors may be impacting your employee's well being. Maybe put rising interest rates on your next agenda and see what comes up.

Share resources available to employees such as an employee assistance program, access to counselling for mental health, a gym membership, a support group and upskill opportunities. Talk about these often and don't rely on a poster on the wall or an email to be your only source of communication. Talking about it opens the forum for others to talk about it.

Create new opportunities for employees to come together as a community.

Can you waive fees to the gym? Maybe start an employee food bank, host a clothing exchange, create an internal market of skill swapping where someone can have a leaky tap fixed in exchange for dog walking. Get creative. The more your team feels safe to talk about their concerns, the more they will ask for what the need and then the team can think of ways to help each other out.

One thing I learned in the military is that when people are going through a hard time together, they take care of each other. When people feel they are the only ones struggling, they have a hard time finding their way out.

Employers can play a crucial role in fostering open communication, providing support for financial well-being, and maintaining a positive work environment during times of economic change.

What ideas do you have to share?

I would love to know what you are seeing in the workplace and the steps you are taking to support your team. Drop it in the comments below.