Why Financial Literacy is Important for Your Employees in Canada

Financial literacy is important for your employees in Canada, especially this time of year when RRSP season is just around the corner. It may seem obvious to most business owners but consider that many of your employees may not be as financially literate as you are. Employees are the backbone of every successful business, helping employees be successful financially is paying huge dividends for businesses that are ahead of the curve.

According to a 2014 survey by the Financial Planning Standards Council, Canadians have ranked money as their greatest source of stress, higher than work, health or family obligations. Stress about finances not only affects mental and physical health, but also work performance and ultimately your bottom line. This doesn’t just apply to industries that pay minimum wage or just above it, professionals with long careers are just as much in the dark as everyone else. Someone with an $80K annual salary can struggle with their finances just as much as someone making $11-$15 an hour.

There are simple ways to address financial stress that will benefit both employees and employers. Basic financial education doesn’t have to involve a huge investment from the business owner. It simply means employees have access to information that is relevant to them. During this time of year, a strong focus on RRSPs and saving for retirement is highly recommended.

Research has consistently shown financial literacy in the workplace can lead to:

  • Better overall health
  • Increased employee retention
  • Increased moral, productivity and profits
  • Lower absenteeism and health care costs

If you think financial literacy is important for your employees in Canada, there are a couple of easy places to start. The Financial Consumer Agency of Canada (FCAC) offers a variety of online resources for your employees. Everything from credit card comparison tools, budget calculators and financial literacy self-assessment quizzes.

Want to take it to the next level and build out a financial wellness program for your business? Check out this page from the FCAC that offers strategies and resources for employers looking to improve the financial well-being of their workforce.

DENT Benefits specializes in developing comprehensive workplace financial and overall wellness programs designed to improve productivity and increase profits. Financial literacy is important for your employees in Canada, 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.

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