Many companies may be unsure why they should even engage in a conversation regarding their employees’ money. According to the 2020 Sanofi Canada Healthcare Survey, personal finances are the top source of stress for Canadians.
Even those who pay their bills on time and save money each month have concerns. Employers who give solutions by providing tools, education, and financial support generate stronger employee loyalty, which is rewarded with improved productivity and cheaper costs.
Financial well-being is incompatible with physical and emotional well-being. Financial issues have a direct impact the majority of employees, and they can cost companies money in the form of absenteeism, stress-related sickness, workplace accidents, higher healthcare expenditures, and theft.
Here are nine strategies for influencing your employee’s mental health:
Provide a strong employee assistance program (EAP) to your employees:
An EAP may help with personal financial issues such as debt management, budgeting, and the formulation of a financial plan. Inform employees that the EAP offers financial counselling and aid with everything from debt consolidation to will preparation.
Give useful information:
Employees who are in debt may get so stressed that they stop paying their bills on time. Debt collection companies may contact you and harass you as a result of this. As an employer, giving information on the rights and duties of debt collectors in each province — including the fact that debt collector calls may be restricted or limited at work — can help employees feel less stressed and ashamed. Inquire about the Debt Collection Act with your province’s Consumer Protection Office. Put this information on the corporate intranet, in the lunchroom, or somewhere else where others may see it to help spread the news without identifying those who are impacted.
Avoid hidden financial demands at work:
Make sure your company is free of hidden financial obligations, including fundraising efforts, lunchtime dining out, and dress code expectations.
Educate people in a multitude of ways:
The truth is that many Canadians have never been taught how to handle their finances. Many employees find it difficult to avoid debt, save money, and invest their money. Many people believe they should know how to do it to make problems worse despite never being taught at home or in school.
Despite the abundance of knowledge available on the internet, individuals still prefer to learn from others. Employees are more likely to learn more if you hold lunch-and-learn events where they can ask questions and get genuine answers from real people. Benefits advisors can either run sessions or connect you to someone who can. Managing debt, learning to budget, setting goals, saving for retirement, and learning to invest are all common themes.
Give advice on how to prevent typical credit blunders:
Weekly recommendations might be placed on the business intranet or sent out via text or email blasts. It might be anything as basic as “remember to pay your payments on time.”
“Credit cards are prohibitively costly. Because interest rates are sometimes 18% or greater, pay your debt each month.”
“Make an effort to pay more than the minimum amount due.”
“Don’t use credit to pay off credit.”
“Look for the best mortgage conditions for you by shopping around. Look past the rate of interest,” says Mathews, an expert in fund manager and expert in essay help service and best online assignment help in Canada.
Assist employees in saving money by:
Allow employees to save by setting up automatic salary deductions into a short-term savings account, a tax-free savings account (TFSA), a registered retirement savings account (RRSP), or all three. In most cases, the cost of setting up programs is negligible.
Contributions are welcome:
Consider contributing to retirement or other savings plans as part of the benefits package, in addition to setting up payroll deduction systems. When an employer makes a matching contribution, employees are considerably more likely to save their own money.
Employee savings plans are one of the most popular perks. A two-percent contribution to a retirement plan is frequently regarded as having a greater impact than a 2%rise. That’s because the key to financial success isn’t how much money individuals make but how much they save. Having a cash buffer decreases stress significantly.
Take into account a loan payback plan:
A student debt payback program is another useful addition to an employee benefits package. Short-term employment is common among recent university graduates. Assisting new workers typically results in increased loyalty and lower turnover, lowering expenses.
Make it enjoyable:
Gamification is one of the most effective methods for engaging employees and assisting them in their learning. Many applications and programs exist to assist consumers in learning more about budgeting, saving, and investing. Financial Football and the digital version of The Game of Life are two examples of games intended for teenagers yet enjoyable by all ages.
Providing the necessary tools
Many businesses are hesitant to enter the financial wellness sector since talking about money is one of the remaining taboo topics in polite discourse. However, there is a significant difference between disclosing earnings or flaunting a high-priced item and giving employees tools to assist them in managing their finances.
Financial well-being is an important aspect of mental well-being. Assisting employees in understanding the fundamentals of financial planning — and thereby assisting them in lowering debt and increasing savings — will go a long way toward minimizing financial stress and worry. Employers will benefit from lower absenteeism, improved loyalty, and increased production as a result of this.