As the deadline to submit our individual tax returns approaches, it may be a good time to look deeper into our financial security.
Several studies assessing the economic climate in Canada indicate that many continue to struggle with high debt levels and feel they have insufficient savings for their future. There is some thought given to the notion that workplace productivity is affected by an employee’s stress with regard to their personal finances and their financial security.
In September of 2017, the Canadian Payroll Association found that around 47% of working Canadians live paycheque to paycheque. Employees who endure stress over their finances are less able to focus on their workplace productivity. There is research to suggest that employers can mitigate the loss of productivity by offering benefits and incentives in addition to an employee’s salary. Through this, employers are able to retain their employees long-term and produce a much happier working environment which has a positive effect on an employer’s bottom line. Incentives such as pension plans or flexible health coverage, provide employees with peace of mind in relation to their financial wellbeing.
The Conference Board of Canada reports that about 30% of Canadians are not able to financially prepare for their retirement due to their inability to afford retirement savings and investments. An article prepared by Novus Health indicates that employers are able to assist their employees by offering financially-focused employee benefits, financial seminars and workplace saving schemes. By supporting employees in their efforts to achieve financial security, an employer is able to ensure that the focus remains on workplace productivity.
Financial Advisors can assist small business owners with putting together a plan aimed at guiding their employees towards financial security, thereby creating a mutualistic environment that reduces employee stress and boosts productivity.