Financial debt is a stressor that can have consequences in the workplace. According to a CPA survey, 43% of Canadian employees reported feeling so financially stressed that their productivity and performance at work suffered.
To prevent this from happening at your organization, you need to build a culture of financial wellness and empower your employees to take charge of their personal finance management.
Do you want to learn more about how financial wellness significantly contributes to your company culture? Download our free guide, Why payroll can be the most important part of company culture, to discover the importance that payroll has in your employees’ lives.
Employees may be missing out on the opportunity to plan proactively for the future due to a lack of resources available to them, as well as little knowledge of finance management.
Another barrier to employee financial wellness is employees feeling that they’re unable to discuss their finances openly in the office. As the CPA survey states, 47% of respondents indicated that “they would be uncomfortable talking about debt with a colleague or peer".
Providing financial education and resources in the workplace is essential for developing strengthened financial preparedness and security among employees. The key solution is to cultivate an open dialogue within the workplace that allows employees to feel comfortable speaking about their finances.
There are various strategies and educational initiatives for promoting employee financial wellness in the workplace.
Support your people in improving their financial literacy by providing reading materials to study and informational workshops to attend. The Government of Canada offers a number of financial literacy resources and initiatives—from worksheets to videos—to support Canadians in taking control of their financial well-being. Topics covered include making a budget, having a savings and debt reduction plan, and understanding individual financial rights and responsibilities.
Additionally, the CPA offers free financial literacy sessions for training on financial basics, money management, and family planning. As another option, organizations can invite financial experts to present on different topics, allowing employees the opportunity to ask questions.
Your company’s human resources and accounting departments can also provide a breadth of relevant information. Additionally, using a comprehensive digital payroll solution can contribute to employee financial wellness by allowing your employees access to their payroll information, helping them gain a greater understanding of their financial data through their pay stubs and related pay documents.
Encouraging your people to prioritize their financial wellness at work will have tremendous results on their wellbeing—and the wellbeing of your organization.
In addition to improvements to employee productivity and performance, financial wellbeing in the workplace can lead to a wealth of benefits: to name a few, improvements to employee physical and mental health, recruitment and retention, and overall workforce morale.
According to Bruce Elliott, manager of compensation and benefits at the Society for Human Resource Management, financial education should be considered “a recruitment and retention tool” that gives employers an edge when hiring.
Workplaces that offer financial education are directly helping their company’s most valuable resources (their people) with a major source of stress, resulting in a happier and healthier team.
Want to learn more? Download our latest guide Why payroll can be the most important part of company culture, to discover the value that employee financial wellness can bring to your organization.