As the cost of living continues to rise, it’s becoming harder to cover daily expenses or work towards long-term goals, like owning a home or saving for the future. Chances are, your employees are feeling the pinch, too.
As an employer, there are ways you can help your team feel more secure in their financials that go beyond a competitive salary. When you take the time to understand what your employees value and build a program that supports their financial wellbeing, your efforts will go further and result in cost savings for the business.
Why prioritizing employee financial wellbeing is good for business
Financial wellbeing is not a term we hear often. According to the Financial Consumer Agency of Canada, it simply means to be able to meet current and ongoing financial needs, feel secure about your financial future and be free to make choices that allow you to enjoy life.
As an employer, you might be wondering: what does my employees’ financial wellbeing have to do with me? You offer fair pay, and like most businesses, you also need to be mindful of your bottom line. However, it’s important to note that financial stress doesn’t stay at home—it follows people into every part of their lives, including work. Over time, that stress can take a toll on physical and mental health, which impacts focus, engagement and productivity.
Ongoing employee financial stress can also result in:
- Increased absences and sick time
- Increased turnover
- Lower moral
- Strained working relationships
- Less effective decision making
Businesses with employees who lack focus may experience:
- Administrative and financial errors
- More workplace accidents
- Production errors
- Poor customer service
Coincidently, overlooking employee financial wellbeing can come with financial setbacks for employers. According to the Financial Consumer Agency of Canada, for an organization with 200 employees, employee distraction caused by financial stress could cost 7,521 hours of lost productivity in one year. That could cost the business $1,000 per employee or just over $200,000 annually.
By introducing a financial wellbeing program, you can help employees better understand their finances, maximize their compensation and reduce stress. In return, you’ll benefit from more engaged, optimistic teams that are invested in their job performance.
Employee financial wellbeing program ideas
There are plenty of ways employers can support their employees’ financial wellbeing. Here are some ways you can make a meaningful impact:
1. Health Spending Account: Offer your employees a Health Spending Account to help them pay for health care expenses that are not covered under their benefits plan.
2. Wellness Spending Account: Provide a Wellness Spending Account to support employees with expenses, like gym memberships, fitness classes, dependent care and financial services.
3. Access to financial advisors: Make it easy for employees to access expert financial advice by occasionally having financial advisors available at the office.
4. Financial lunch and learns: Host regular lunch and learn sessions to educate employees on topics like budgeting, debt management, investing, retirement and how to maximize their income.
5. Registered Retirement Savings Plan (RRSP): Offer an RRSP program with automatic payroll deductions and employer-matching contributions. This way, employees will actively invest in their retirement, without having to manage their savings or be tempted to spend money elsewhere.
6. Work from home options: Give your employees the option to work from home a few times a week to help them save on parking and commuting.
7. Employee discounts: Use your organization’s partnerships to offer employee discounts on common products and services like insurance, gym memberships, phone plans, internet, parking or automotive services.
8. Paid time off: Allow employees to take personal or mental health days, without having to choose between caring for themselves or others and receiving their full paycheck.
9. Comprehensive benefits plan: Offer a well-rounded benefits plan that includes health, dental, vision and mental health support to reduce financial burdens and ensure employees have access to the care they need.
10. Free food and drinks: Stock the employee lunchroom or common area with snacks and beverages to help employees cut down on food expenses.
11. Cover a portion of your employees’ childcare services: Help working parents cut back on expenses by covering part of their childcare costs.
12. Provide educational assistance for employees’ children: Offer a scholarship program for employees’ children to help lighten the load of post-secondary costs.
Financial wellbeing programs aren’t a one-size fits all
While there is research available on what different generations value in financial benefits, that said, the best insights come from your employees. Consider running a survey or holding focus groups to learn what your team values and how you can support them. If you take time to understand your employees’ preferences, you can addresses their immediate needs and help them plan for the future, building trust and loyalty in the process.
Design a financial wellbeing program for your business
Thinking about bringing a financial wellbeing program to your workplace, but don’t know where to start?
Reach out to our Wellness Advisors at wellness@ab.bluecross.ca. They’ll help you discover what matters to your employees and design a program that meets their needs, within your budget.
