The CPA’s 2018 survey reveals that 40% of employed Canadians are feeling overwhelmed by financial debt. This stressor can lead to consequences in financial wellness at work, as 45% of Canadian workers say that “financial stress is impacting their workplace performance.”
Financial woes impact work by reducing performance and productivity. To prevent this from happening at your organization, employers need to invest in employee financial wellness by empowering their people in their personal finance management.
The need to support employee’s financial wellness at work
Employees are missing out on the opportunity of being proactive in planning for the future due to the lack of knowledge of finance management and the resources available to them. As well, another barrier is the perspective of the lack of a safe space to discuss their financial situations 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 a necessity for developing a strengthened sense of financial preparedness and security among your team members. The key solution to fulfilling this end goal is to cultivate a forum within the work environment in which employees can feel comfortable with speaking about their finances.
Strategies for promoting financial wellness in the workplace
There are various initiatives organizations can take to deliver financial education in the work environment.
Support your people in improving their financial literacy with 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 their 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 deliver informative presentations on financial topics to their staff.
Your company’s human resources and accounting departments can also provide transparency. This can be accomplished by enabling employees to review their earnings and savings with access to their payroll, benefits, and pensions information. A comprehensive digital payroll solution contributes to employee financial wellness—support your people in gaining a greater understanding of their financial data in their paystubs and related pay documents.
The benefits of providing financial education in the workplace
Encouraging your people to prioritize their financial wellness at work will have tremendous results on their wellbeing as well as the wellbeing of your organization. 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 an edge to employers.
In addition to improvements to employee productivity and performance, a focus on financial wellbeing in the workplace can lead to a wealth of benefits. These benefits include improvements to employee physical and mental health, talent recruitment and retention, and overall workforce morale.
All and all, workplaces that offer financial education are directly helping their company’s most valuable resources with a major source of stress, resulting in a happier and healthier team.