When you start your work day, you likely have a lot of different things on your mind. Will my boss be in a good mood? Will I get that critical task done on time? Will that demanding client call me today?
On top of the all the stresses that work brings, you might be like 41% of Canadians who rank money as their number one stress. Not surprisingly, almost half of Canadians have lost sleep over financial issues. With money issues causing so much stress, would employers see a positive return from offering financial planning services as a benefit to their employees? For many reasons, the answer to this question is YES!
Why it works
According to a recent publication from the Ontario Securities Commission, for most people the hardest part of financial planning is starting the process. To help solve this problem, the report suggests that "employers could integrate retirement planning into their onboarding process for new employees". Much of the time consuming, data-gathering process is complete since employers already store important employee information related to payroll and benefits
The advice is unbiased
A financial planning service embedded in employee benefits is customizable and truly about individual financial wellness. Employers have nothing to gain from selling unnecessary financial products and employees can trust that the offerings presented are the best for them.
What's in it for employers?
Return on investment
According to a Techcrunch article, employer-provided financial services are poised to grow significantly. Companies are generally happy to cover financial planning costs as they are "...confident that the productivity and engagement gains will yield positive returns relatively quickly."
A Sunlife study found that almost one-third of Canadians are distracted at work due to their financial situation. While it's impossible to completely alleviate all financial stresses, companies should consider what a less distracted and happier workforce means for the bottom line.
Attract and retain talent
Many companies already offer attractive benefit plans that cover certain medical expenses, fitness reimbursements, and even life, disability, and critical illness insurance. By offering financial planning services, companies have another employee offering to help attract and retain talent. Employees would also have a greater sense of certainty about their future, which means they will be less inclined to look at other job opportunities.
With the decline of company sponsored defined benefit plans, many Canadians don't have a source of guaranteed income in retirement. Companies that assist their employees with financial planning demonstrate that they care about employee well-being and long-term success, even after they leave.
By making objective financial planning easy for their staff, employers will stand out and better attract and retain a talented, productive workforce.
Employees will feel cared for, knowing that their employer wants them to have a secure financial future.
It's easy to see why there is a growing movement towards offering financial wellness programs to employees. At Frame we are extremely excited to be a part of this movement and to work with companies who want to implement innovative and unbiased financial planning programs.