Canadian wellbeing plummets as financial pressure peaks

HR leaders are urged to ramp up their financial wellbeing initiatives

Canadian wellbeing plummets as financial pressure peaks

It’s essential for employers to follow through with their promises – especially when it comes to extending financial support. That’s according to Paula Allen, global leader and senior vice president at LifeWorks, who spoke following the release of their 2022 report. The latest Financial Wellbeing Index from LifeWorks posted a worrying 64 wellbeing score, reflecting the declining trend in financial health amongst Canadian workers since the pandemic.

According to the report, 29% of Canadians have concerns around their ability to cover basic living expenses, with individuals under the age of 40 years old 75% more worried than their older counterparts. Some 47% of Canadians claim they’re not concerned about their ability to cover basic living expenses, while 24% remain unsure.

The findings underscore growing financial concerns amongst employees amid fears of inflation and another recession.

Read more: Four fifths of employees say inflation is affecting their careers

For 55% of Canadians, the biggest impact of inflation is reflected in the rising cost of groceries. For 35%, the price of gas is the most worrying issue, while five percent said their biggest concern is making debt repayments.

How can employers help?

Paula Allen, global leader and senior vice president, research and total wellbeing, revealed how important it is for employers to extend support for employees in these tough times.

"As the financial wellbeing of Canadians reaches its lowest point in 18 months, it's important for employers to remember that actions always speak louder than words when it comes to support," said Allen.

According to Allen, investing in financial education and providing access to financial programmes and services are "critical first steps," as financial worries begin to seep into the workplace.

"Financial wellbeing plays a monumental role in overall wellbeing, and also impacts work productivity. As strategic planning for 2023 begins, organizations that prioritise this will find themselves well ahead of competitors in the months and years to come," she said.

Read more: How can I support my people through inflation?

Idan Shlesinger, president, retirement and financial solutions and executive vice president, added that Canadian organisations now have the opportunity to provide much-needed support to their employees who’re struggling between short- and longer-term priorities.

"Recognising that resources aren't effective if there are accessibility barriers, breaking these down should be a top priority as leaders look to drive their business forward," said Shlesinger.

Recent articles & video

BMO’s strategy for staying ahead of emerging ESG reporting obligations

10 ways to support Indigenous employees in your organization

Ottawa penalizes non-compliant employers under TFW Program

Older workers seeking more entry-level employment opportunities: Report

Most Read Articles

Which 5 provinces are raising the minimum wage Oct. 1?

Canadian employers planning smaller salary increases for 2024: Report

New salary survey predicts average increase of 3.64% in 2024