Canadian HR Reporter

December 2020 CAN

Canadian HR Reporter is the national journal of human resource management. It features the latest workplace news, HR best practices, employment law commentary and tools and tips for employers to get the most out of their workforce.

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N E W S www.hrreporter.com 7 Financial wellness popular, but workers still hurting OVER the past few years, employers have felt increasingly respon- sible for employees' financial wellness. And yet many workers are not feeling that much better on the finance side, suggesting there's room for improvement when it comes to what's being offered. A survey by the Bank of America finds that 62 per cent of employers feel "extremely" responsible for the financial wellness of their workforce today, compared to just 13 per cent in 2013. It's heartening to see employers building out financial wellness offerings to provide more education tools and programs around issues such as budgeting, saving and debt management, says Kevin Crain, managing director and head of workplace solutions integration at Bank of America in New York. "[For years], it was very focused on… more of the longer-term aspect of the employee's life, meaning retirement savings, retirement planning, doing everything to ensure the retirement plan they offered was being utilized by employees, which is great. But... they're now quickly understanding and realizing shorter, immediate financial issues… are definitely impacting employees." The range of topics being addressed has increased significantly compared to the 2013 survey: saving for retirement comes in at 81 per cent versus 70 per cent; planning for health-care costs is at 71 per cent versus 38 per cent; budgeting is at 63 per cent versus 14 per cent; saving for college is at 55 per cent versus 13 per cent; and managing debt is at 54 per cent versus 15 per cent. Why the interest? So, what's behind the expanded interest in financial wellness? A strong majority (83 per cent) of employers believe employee financial wellness programs and tools help to create more productive, loyal, satisfied and engaged employees, finds the survey of 996 employees and 808 employers in the U.S. And it works both ways: When asked what factors contribute to their overall sense of well-being, employees cited physical (51 per cent) and mental wellness (54 per cent) just slightly more so than financial (49 per cent). Employers see finances as a huge stress issue for workers, and that leads to productivity issues and, potentially, health costs, says Crain. " The employer sees themselves benefiting much more… from doing this than years ago, where they thought, "Employers are beginning to think about 'How do I cater to the needs of a boomer? And how do I cater to the needs of gen Z?... For productivity reasons, I need to appreciate all the differences.' And then, of course, you have ethnic diversity, you have gender diversity. So, it's a mosaic now." Best practices to combat struggles However, 49 per cent of employees rate their financial wellness as good or excellent, down from 55 per cent in 2019 and 61 per cent in 2018, finds the Bank of America survey. So, what could employers be doing differently to see better results? Using digital technology has allowed for cost efficiencies, and, with AI, people can be told how they are doing comparatively and given options on how to respond, which is a "breakthrough," says Crain, whereas before, "you couldn't as easily personalize the actions; now, you can completely do that." Despite the "many fabulous tools" available to help people figure out their finances, some people don't really understand how the information applies to them, says Mewhort, so having an actual person available, through a video call or webinar, can help. "We see greater uptake once somebody has been in front of them to explain stuff and to answer their questions directly." Another way to improve financial wellness is frontline manager training that goes beyond intranet information, emails, circulars or newsletters from HR, says Kolluri. "If a team member has an issue that a frontline manager would know about, then they can connect the dots between the mood and the benefit that's available [and] you could drive up the utilization piece." Providing financial wellness scores to individuals can also help, says Crain. "You have to do it in a way that informs [people] in a way that they will want to take action… You don't want to do it in a way that it oppresses them or they get turned off by it," he says, adding that millennials in particular appreciate the rating. "They're all over them: 'Why did my score go up? Why did my score go down? What can I do?'" CHRR Employers may be all over financial wellness offerings such as retirement savings plans or workshops on how to manage debt, but employees are still struggling, suggesting more needs to be done 2 hours The average amount of time per day Canadians worry about their finances 2.25 hours The average amount of time households making under $50,000 per year worry about finances 1.85 hours The average amount of time households making between $50,000 and $99,000 worry about finances 1 hour The average amount of time households making $100,000 or more worry about finances Source: Scotiabank 'Oh, financial wellness sounds nice, but I offer a benefit plan so why do I really need to go to all these extra steps?'" In some cases, employers offer financial wellness programs for attraction and retention purposes, says Judith Mewhort, managing partner at Montridge Advisory Group in Vancouver. But others realize "that this financial component is a big piece of mental health, wellness and that when people feel stressed about money, they're not necessarily present. They may be… having to take time off or whatever." The fact that some workplaces have four generations is another consideration, says Surya Kolluri, managing director of retirement and personal wealth solutions thought leadership at Bank of America in Boston. FINANCIAL WORRIES PROVE TIME CONSUMING "Employers are thinking about 'How do I cater to the needs of a boomer? And how do I cater to the needs of gen Z?" Surya Kolluri, Bank of America

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