Financial insecurity is a significant stressor for many people. With rising inflation increasing the cost of everyday purchases, people are concerned about making ends meet.
According to a recent survey1 from the Angus Reid Institute, nine out of 10 Canadians are reducing their spending, and a quarter of respondents are cutting back on retirement savings. The survey also shows that most people believe their finances have worsened over the past year, with few expecting improvements in the coming year. Over the next six months, more than half of survey respondents expect interest rates to impact their finances negatively. Coupled with market volatility, these things are causing a lot of financial stress.
With November being financial literacy month, it is a good time for employers to focus on financial education to help employees make better financial decisions.
Employees tend to bring these financial pressures to the workplace, which reduces productivity and engagement and increases absenteeism. Forbes outlines five reasons2 why employees are a company’s number one asset, making it beneficial to support them and their financial wellness:
- Your people are your most significant resource and can affect brand perception
- Your employees are your brand ambassadors
- Retaining, recruiting, and rehiring is costly
- Employee turnover is costly and can affect employee and client morale
- Value your employees and increase your company’s profitability
With November being financial literacy month, it is a good time for employers to focus on financial education to help employees make better financial decisions. Employers who offer employees financial education can benefit from happier and healthier teams.
Financial education comes in many different forms depending on the workforce. Traditional methods have been through lunch and learn workshops, written material, and employee webinars. Employers should not be providing money management advice to employees; thus, many employers have engaged experts to offer one-on-one financial management to meet the needs of the individual.
Please reach out to your Cowan consultant to learn more about how you can help support employees achieve financial wellness.
The Government of Canada offers several financial literacy resources to support Canadians. Topics covered include budgeting, savings plans, and debt reduction. You can visit https://www.canada.ca/en/financial-consumer-agency/campaigns/financial-literacy-month.html to learn more.
1 Angus Reid Institute (September 29, 2022). Cutting back: Nine-in-ten Canadians now tightening household budgets as inflation, high prices persist. Retrieved from URL.
2 Hobson, K. (December 12, 2019). Five Reasons Employees Are Your Company’s No. 1 Asset. Retrieved from URL.