Current economic outlooks, housing affordability issues, inflation and food prices, which have risen by 28 per cent since 2019, have many organizations focusing on financial wellness education initiatives to help the people they rely on succeed through challenging economic times. Statistics Canada reports that one-third of Canadians live in a household experiencing financial difficulties. Often, human resources (HR), payroll and finance professionals are at the forefront of planning targeted financial education training and day-to-day help for employees navigating their way through economic turmoil.

How complementing departments work together can be the difference between being out of sync and symphonic harmony. HR, payroll and finance departments have responsibilities that regularly intersect, and working well together is vital to the success of their individual and shared goals, as well as the strategic objectives of the organization.

Rebecca Blood is an HR director for a First Nations Administration who has experience working in payroll, accounting and HR departments and understands how important it is for these departments to work together successfully. Blood relies on finance and payroll to provide key information to make fully informed decisions such as budgetary restrictions for compensation and the feasibility of various projects. Blood told HCM Dialogue, "Payroll is one of the most important elements of business from my perspective. As much as workers may be highly motivated, engaged and aligned with the culture, ultimately, no staff would be present if they weren't being paid promptly, correctly and fairly. HR management systems, which often feed into payroll processing, allow me to run reports and identify trends, gaps and opportunities to improve our methods."

Making the connection between financial and mental wellness

Candace Nykiforuk, professor and scientific director of the Centre for Healthy Communities at the University of Alberta's School of Public Health says, "While financial insecurity puts a strain on Canadians' bank accounts, it also amounts to a poorly understood public health challenge with both short- and long-term effects on individuals." Nykiforuk speaks to the generational impact of stress, noting that children who grow up in a family experiencing financial stress have significantly higher rates of long-term disability, depression and anxiety. She adds, "These are costs borne by the health-care system and the common economy, because a workforce with poor health is not as reliable as one with good health. These costs will come back into the system as health-care costs or justice costs or social security costs."

Businesses can make an impact in people's lives as it relates to inspiring their staff to act. Blood says that working to support a First Nations community has ignited her passion in this area. Self-sufficiency and building capacity within the community are at the centre of her organization's priorities. "It's important to remember that there are real people in these roles and their well-being should be a focal point for organizations. The energy you give, you tend to get, so keeping your people happy will have a meaningful impact in longevity of staff and productivity."

Interdepartmental collaboration for financial wellness

Blood says big-picture initiatives among payroll, finance and HR that can impact financial wellness include:

  • Proactive compensation review
  • Fair labour practices
  • Staff recognition

Blood showcases the power of information, stating, "People may not know what they don't know."

She suggests financial literacy training and encouraging staff to utilize supports available, such as employee and family assistance programs (EFAPs). She also highlights how consistent messaging and encouragement to use programs and training available to staff throughout various departments and points of contact can reinforce an organization's commitment to financial wellness and literacy and increase the likelihood that the staff who need it most will participate. Blood reminds us, "No one can pour from an empty cup." Financial education can help people manage their stresses outside of work, meaning they have more to give when they enter the workplace.

Blood asserts that financial wellness and genuine care for employees must be authentic and come from every area of an organization with a positive corporate culture that needs to be lived and breathed. When it is a token effort, lip service or inconsistently practiced, "policies aren't worth the paper they are written on."

Conclusion

When influential departments such as payroll, finance and HR collaborate for employee wellness, they truly become the ambassadors for their organizations. Having a policy is one thing, but the actual practice of the policy is where organizations can truly show their commitment to financial wellness and other pressing issues impacting staff.





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