Canadian HR Reporter

22 www.hrreporter.com F E A T U R E S S P E C I A L F E A T U R E BENEFITS GUIDE has affected ever yone personally, physically and financially. HR professionals have an additional challenge — not only do they have to be concerned about the physical and mental well-being of employees but also their financial well-being as it relates to group retirement plans. HR professionals are not expected to be financial experts (or to give finan- cial advice); however, they do have a choice in fund managers and need to ensure that their retirement fund remains strong even during turbulent times. Retirement fund management As the global business landscape continues to transform, it will present challenges and opportunities. Every sector took a hit in March 2020 when the world economy was essentially shut down, but some recovered quicker than others. Some sectors even exploded to new heights as a direct result of the pandemic. To ensure longevity and to maximize earnings (or minimize losses) during economic downturns, it is important that your retirement fund is diversi- fied. Some of the strongest sectors that present the most opportunity moving forward are health care, technology (such as communication platforms, tele- medicine and online shopping) and tele- communications. Likewise, this pandemic has made many people realize which sectors are most at risk, such as brick-and-mortar retail stores that do not sell essential items or the travel industry. The purpose of a group retirement fund is to spread risk effectively among many financial sectors so the overall risk is significantly lowered for an individual investor. It is important to have a long-term investment strategy when choosing a group fund manager. The manager should be able to explain this strategy in detail and in terms that can be comprehended by the average employee contributing to the fund. Financial literacy Financial literacy has never been more important for employees than during the current pandemic. HR professionals should forge partnerships with CFOs to improve the financial literacy of the entire workforce. Loyalty to a company often depends on the company's consid- eration for the financial condition of its workforce. HR professionals know that financial well-being is directly tied to an employ- ee's mental well-being, which, in turn, is directly related to productivity and bottom-line profits. It's estimated that employee concerns about money could cost employers an estimated US$250 billion per year, according to Mercer's 2017 report Inside Employees' Minds: Financial Wellness. It is in the best interest of a company that each employee has a basic grasp of the investment options available to them, along with budgeting tools and access to personal financial advice. This is why benefits consulting companies work directly with experienced fund managers to offer employers' employees direct advice from certified financial professionals. It takes a lot of pressure off the HR department and is proven to effectively increase morale, concentra- tion at work and productivity. COVID-19 has caused a lot of uncer- tainty in every aspect of our lives. The average Canadian cannot help but worry about their financial security and retirement. HR professionals can assist employees (and employers) by ensuring easy access to financial advice by accredited professionals who have their fingers on the pulse of the global economy. CHRR COVID-19 HOW IS COVID-19 AFFECTING GROUP RETIREMENT PLANS? With the pandemic, Canadians can't help but worry about their financial security and retirement. HR can assist employees and employers by providing access to financial advice from accredited professionals who know about the economy Sharon Dent is a partner and senior group benefits consultant at DENT Benefits Consulting in White Rock, B.C. For more information, visit www.dentbenefits.ca. HR professionals know that financial well-being is directly tied to an employee's mental well-being, which, in turn, is directly related to productivity and bottom-line profits.

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