Plant closures, facility shutdowns, bankruptcies and layoffs are all words that generate anxiety. Unfortunately, they are a reality for hundreds of Canadians each day. To help reduce the economic fears of their employees, some employers are offering on-site financial education sessions. These sessions motivate employees to seek help for their money concerns before it is too late.
Many Canadians are financially illiterate—a fact that’s apparent to many, including the government. In June, Minister of Finance Jim Flaherty announced the establishment of a task force on financial literacy that will support financial education initiatives across the country.
Shepell.fgi’s Financial Distress Impacts Health and Productivity report indicates that in 2008, the top five financial issues for employees were debt/credit, financial planning, divorce/finance, financial stress and bankruptcy. Furthermore, the latest Certified General Accountants Association of Canada report concluded that household debts exceeded $1.3 trillion in 2008, and recent statistics from Bankruptcycanada.com indicate an overall increase of 34.4% in personal bankruptcies among Canadians in May 2009 compared with May 2008.
Clearly, many employees face financial challenges, and employers, HR departments and employee assistance program (EAP) providers are quickly recognizing this new reality.
No one is immune to the effects of the economy, and there is no quick fix. “Employers are providing their staff with education, skills and resources to help them cope with the economic changes that are affecting their lives,” says Adrienne Crowder, wellness coordinator with Homewood Employee Health EAP.
Homewood has engaged the services of a non-profit credit counselling agency for its client base. “The feedback has been extremely positive—from both employers and employees,” says Crowder. “Our clients receive high-quality financial wellness sessions, and we have been able to deliver consistent, well-presented sessions in a wide variety of settings and locations.”
Credit counselling agencies offer financial literacy seminars on topics such as credit management, budgeting, goal setting, financial planning and lifestyle changes. Organizations can offer these seminars to their employees by contacting an agency’s community outreach manager. The outreach manager sets up the partnership with the organization, provides information on the seminars and educational materials and tailors a presentation to the organization’s particular needs (for example, an employer-sponsored lunch and learn session).
From an employer’s perspective, encouraging employees to engage in financial literacy programs is a way to support staff and maintain a strong work ethic in the workplace. This is an important issue today because of growing concerns and reports of lower employee motivation on the job.
Such counselling can also benefit employers in several ways. First, it projects the image of corporate responsibility: employers show they care about the health and well-being of their staff. Second, it provides a proactive approach to lowering turnover rates, sick days and leaves of absence. And third, there is no cost to the employer to offer these services.
Employers would be wise to remember one of author Stephen R. Covey’s seven habits of highly effective people: “Begin with the end in mind.” Laying the foundation for the financial well-being of employees can help organizations gain the support and loyalty of their workforce. And, by helping employees to develop basic financial literacy skills, employers give their employees the right tools to be successful.
Galit Osadtsuk is director of community and public relations with Consolidated Credit Counseling Services of Canada Inc.
gosadtsuk@consolidatedcredit.ca
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© Copyright 2009 Rogers Publishing Ltd. This article first appeared in the August 2009 edition of BENEFITS CANADA magazine.