Financial Education in Business: Meeting the Needs of Your Employees

The employer-employee relationship continues to evolve, and in a context of labour shortage, the expectations of employees are increasingly high regarding the benefits offered to them. According to a recent report by Manulife, 82% of Canadian workers believe that it is important for employers to offer financial wellness programs¹.

With a vision towards innovation and also to respond to a pressing need, Solertia developed its Financial Education Program, also known by its acronym PEF, a few years ago. This distinctive program has seen growing success, offering tangible results that are quickly noticeable for both employees and employers.

The primary objective of the Financial Education Program is to reduce the financial stress of employees by improving their financial literacy. The measures implemented are designed to educate workers while encouraging them to adopt healthy financial habits. Thus, the PEF helps alleviate financial tensions among workers and promotes sound financial management through thoughtful and prudent decision-making. Solertia ensures the achievement of this objective by adopting various approaches that aim to cater to the preferences of all employees, while also considering the specific needs of each employer.

In addition to the PEF, the Solertia team has developed a Financial Health Barometer. This tool allows each employer to obtain a personalized diagnosis of the financial situation of their employees on a confidential basis, enabling them to better target actions to implement within their organization.

The past few years have been full of twists and turns, putting significant pressure on the wallets of much of the population. In 2023, the financial stress of Canadian workers reached a peak, with 37% of the Canadian workforce considering themselves financially stressed².

Furthermore, 45% of employees spend three hours or more each week worrying about financial concerns, and a major repercussion could be feared in case of delayed payment of their salary, making it difficult for them to meet their financial obligations³.

For businesses, financial stress represents a major risk that can lead to a loss of productivity of up to one week per employee, resulting in a financial loss estimated at $1,000 per employee (calculated based on an hourly rate of $25)⁴.

In this context, considering inflation, interest rates, and individual situations, it has become imperative to resort to a professional approach to adequately address the financial needs of employees. It is necessary and even more important to address the financial health issues of your employees, on par with the actions that have been taken for several years to prevent physical and mental health issues.

According to the latest data, there is a clear desire to have access to an independent financial education program:

• 79% of employees believe that a wellness program offered by their employer helps reduce their financial anxiety;
• 75% of employees consider that access to a wellness program encourages them to stay within the company, thus contributing to their retention;
• 66% of employees affirm that such a program improves their productivity⁵.

Solertia’s Financial Education Program is generally included at no additional cost when the company offers a participatory retirement plan. However, the PEF can also be offered as an independent service, adaptable to the specific needs of organizations; the rates are flexible depending on the options chosen.

Thus, financial education remains an essential pillar for the financial stability of employees, both on an individual and organizational level. We strongly encourage you to take concrete steps to implement a financial education program for your employees. This initiative will benefit everyone and strengthen the financial health of each individual, while also positively contributes to the prosperity of your company.