Why Financial Wellness Matters for Employees’ Health and Productivity

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According to a Stats Can study, stressed workers waste time due to mental anxiety. This loss appears in both quantity and quality of work, as overextended employees may lack creativity and work at a slower pace. It also indicates that triggers such as too many demands, poor interpersonal relations, risk of injury and threat of job loss contribute to their unhappiness in the workplace.

The same study estimates that companies lose some $300 billion every year due to reduced work output worldwide. Even the hardest-working employee can become bogged down by financial stress.

A lack of productivity is directly related to heightened anxiety and other ailments. The Canadian government reports that employees under financial stress are twice as likely to have poor mental health. They are also four times more likely to suffer from insomnia and migraines.

Moreover, stress can lead to health complications such as high blood pressure or heart disease. The culmination of all these problems only increases employees’ anxiety levels, thus creating a cycle of financial, physical, and mental stress.

This cycle leads to 46% of employees dedicating at least three hours a week to worrying about their finances. They might also need more sick time due to increasing ailments or commit simple errors that could be catastrophic for your business.

Though budgeting may seem like a no-brainer, much of the Canadian population does not know how to create a financial plan. To provide financial education, start by assessing your staff’s needs and proceed accordingly.

If you feel that your employees could benefit from courses on managing personal finances, you can either create your own course or hire a professional. You can also supply financial advisors to evaluate individuals or even create incentive-driven contests to encourage healthy financial habits.

Team members should receive counselling on credit, saving, and budgeting. For example, creating a savings plan that includes an emergency fund and suggesting a high-interest savings account to achieve it are great suggestions for anyone new to budgeting.

Physical health has a direct influence on financial and mental well-being. Smokers, for example, spend hundreds if not thousands, of dollars per year on their addiction. Encouraging physical health in the workplace is a great tactic to improve finances.

When promoting physical health, involve your entire team and avoid unintentionally targeting one employee. For example, you could offer a support program that an employee can voluntarily request if they want to quit an addiction. Or, you could replace junk food with healthy snacks in the break room.

For small businesses, your budget or resources may not allow you to provide retirement plans. However, if you have the assets, you can offer your team members private employer-sponsored pension plans or group retirement savings plans.

For those without assets, you should at least educate your staff on the Canada Pension Plan and how to apply for it.

Finally, you can improve your team’s medical coverage by offering health and dental group employee plans. Though Canada’s universal system pays for basic healthcare services, other aspects like dental and prescription medications are full-price for Canadians.

Paying for expensive medications or dental procedures can increase stress levels. The benefit of group insurance plans is that they are one of the easiest ways to improve your employees’ financial lives.

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