Financial education should be a critical part of our public-school system. While calculus and trigonometry can be important depending on your chosen field, simple financial education is much more relevant to the entire population of young Canadians graduating high-school. Reforming our public education system aside, financial education in the workplace is the next best option for ensuring your employees are financially literate.
Why is financial literacy important for your workforce?
As a business owner you are well-versed in cost-control, budgeting, profit margins, and all the financial acumen required to operate a successful business. What some people don’t realize is that their lives should be run like a business. You trade your time for money, pay living expenses and at the end of the year there should be a profit.
Stress from financial issues is a major contributor to decreased productivity, absenteeism and high turnover rates. This directly impacts your bottom line as a business owner.
How do employees feel about financial education in the workplace?
A recent survey done by the Canadian Payroll Association showed that 84% of employees would be interested in obtaining financial education in the workplace. Of the 84% who want financial education, 40% were interested in planning and saving for the future. Around 46% of all respondents said that financial stress impacts their workplace performance.
Debt is the biggest contributing factor to financial stress. In the survey mentioned above, 44% of respondents said they are living paycheque to paycheque, and 40% feel overwhelmed by the amount of debt they are carrying. Increased spending, cost of living and interest rates all contribute to a greater debt load.
Effective Group Retirement Plans include a financial education component that is designed to give your employees confidence when making important financial decisions. Rather than just pitch RRSP’s and other financial products to your employees, focusing on lifestyle planning and how it relates to your retirement is much more valuable to the average employee.
Studies have shown that business owners get a 3:1 return on their investment when implementing some form of financial education in the workplace. Employees that are financially secure are much more likely to stay with a company long-term and be more productive. If you are interested in group retirement plans and financial education in the workplace, contact DENT Benefits today to learn more!
The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.