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The role of employers in building long-term financial security

January 6, 2026
George Yang

Canadians are worried about their finances. According to the Government of Canada, worries about financial security are the biggest source of personal stress, eclipsing work, personal health and relationship stressors. Financial stress impacts Canadians regardless of their income level or age.

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According to a PwC Employee Financial Wellness Survey: “Financially stressed employees are nearly five times as likely to admit personal finance issues have been a distraction at work.” Additionally: “Among financially stressed employees who are distracted at work because of their finances, 56 per cent spend three hours or more per week at work dealing with or thinking about issues related to their personal finances.”

Many top-tier organizations are prioritizing the financial well-being of their employees as a part of their overall strategy. Beyond caring for the well-being of employees, which is also a valid reason for implementing strategies to ensure long-term financial security among staff, financial stressors negatively impact performance in the workplace. 

Critical cases for financial wellness in the workplace

Corporate financial wellness isn’t just corporate jargon – it’s a key strategy for helping employees navigate a challenging economic landscape. Financial stress can be overwhelming, and people need more avenues available to help them manage their budgets and build a long-term financial security plan tailored to their needs.

Financial Literacy Leader Doretta Thompson, CPA Canada, said: “Research shows that Canadian workers are experiencing ever higher levels of financial stress, which directly affects performance and absenteeism. By expanding wellness programs to include financial education and empowerment, employers can help employees decrease that stress and its impact on the bottom line.”

To be truly effective, employer support for financial wellness must adapt beyond outdated workplace retirement planning initiatives. Snezana Zlatar, senior managing director and head of financial wellness advice and innovation at TIAA told Plansponsor: “It’s hard for employees to focus on their retirement when there are more immediate pressing needs. The most impactful financial wellness programs help address both short-term and long-term goals since they are linked together.”

” “Among financially stressed employees who are distracted at work because of their finances, 56 per cent spend three hours or more per week at work dealing with or thinking about issues related to their personal finances.” ”

Barriers to financial wellness programs

Recent PwC research shows that one-third of employees with access to financial wellness benefits don’t use them. There are numerous reasons why employees don’t engage with company-sponsored financial wellness programs.

Keep these barriers top of mind when designing or redesigning your own corporate financial wellness program to help you avoid common pitfalls, including:

  • Concerns about privacy and stigma;
  • Anticipation of hidden costs or fees related to the program;
  • Uncertainty of the quality of programs offered;
  • Being unsure as to whether financial security programs will positively impact a person’s personal situation; and
  • Lack of awareness of the suite of financial wellness programs offered.

Many of these barriers can be addressed by:

  • Ensuring the financial wellness programs offered are regularly updated and properly align with employee needs (i.e., addressing immediate financial circumstances like debt and emergency savings, as well as some focus on retirement planning benefits);
  • Properly communicating program offerings and updates to staff; and
  • Including financial wellness programming as a part of onboarding and ongoing professional development initiatives.

Making workplace financial security initiatives work

Naturally, the resources that can be allocated depend on an organization’s budget, but even organizations with modest financial wellness budgets have achieved success with well-thought-out, well-executed plans. There are many approaches that can help increase participation in and effectiveness of employer-sponsored financial wellness programs, such as:

  • Investing in online savings programs that don’t demand barrier-inducing minimums;
  • Offering programming that provides options for both short-term and longer-term financial planning;
  • Relying on the “yelp” principle to build trust in the program through reviews by trusted peers, allowing staff members who have had good experiences to act as ambassadors to promote the program (and taking critiques of the programs offered seriously);
  • Communicating the “why” behind financial wellness initiatives so people understand how it can impact them to help create buy-in and trust;
  • Targeting communications about offerings to different staff demographics to make it more relevant;
  • Promoting programs, updates and reminders about benefits related to financial security through multiple channels (i.e., email, onboarding, digital signs, flyers and during departmental and townhall meetings);
  • Reducing barriers to entering the programs by ensuring joining is user-friendly and that staff know how they can participate; and
  • Surveying employees about their financial needs and interests to better tailor offerings.

Conclusion

Financial literacy and financial wellness have become critical issues in our homes, workplaces and schools. Wealthsimple’s survey results from their premiere Financial Wellness Reports showcase that “Nearly all [surveyed] (91 per cent) shared they are more committed to employers who offer great financial wellness benefits.” The time is now for employers to enhance their commitment to aiding their staff in building long-term financial security.

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