According to the 2016 Manulife Financial Wellness Index , a surprising 40% of Canadians believe that they’re “financially unwell.” Even more surprising? Of those, only 22%1 have a financial advisor. As a result, they’re more likely to report feeling stress associated with their money troubles, compared to those who are “financially well.”
Why should sponsors be concerned?
A whopping 93%2 of professional counsellors agreed that financial stress impacts productivity and work. This can have cascading consequences for an employer, including lack of employee engagement, distraction and, ultimately, an impact to the bottom line.
What’s keeping members from reaching out for help?
It’s obvious people want to be more confident about their finances. However, when financial challenges are linked to life issues, professional counsellors feel it is difficult for people to reveal their money problems, mainly because of shame and embarrassment2. These emotional barriers are blocking their path to financial fitness, so we need to make it easy and accessible for them to get the help they want.
For employees overcome their barriers, they need to feel:
- They are not alone – poor financial health is more common than people think
- It’s okay – having money issues doesn’t make someone a failure
- They can still get there – with the right support and guidance, anyone can feel comfortable managing their money
We believe financial guidance must be more accessible to help employees reduce financial stress and get on the right track. Whether through videos, webinars , or in an individual meeting , offering financial education and guidance as part of your savings program is a win-win for both employees and organizations – employees are happier, healthier and ready to bring their best to work every day.
For more information, contact your Manulife representative.
1 Manulife Financial Wellness Index, 2016
2 Emotional barriers to financial wellness - 2017 study conducted by Manulife / Homewood