strategy
Want to Increase
Employee Productivity?
HELP THEM RETIRE
By Randy Cass
Canadians continue to worry if they are saving enough for retirement
Financial worry is the leading cause of stress across the coun-try
and the impact of this extends far beyond the personal
lives of employees. It also has an effect on professional
behaviours in the workplace as well.
Industry statistics show that unhappy workers cost North
American businesses over $350 billion annually in lost produc-tivity.
It probably goes without saying that when employees feel
more confident in their home life, they perform better profession-ally.
Happy employees collaborate better, make stronger leaders,
think more creatively and become less absent. And best yet, they
are willing and eager to take on new challenges.
Are retirement worries keeping your staff from reaching their
full potential?
For years, the appeal to working for large corporations or
the public sector was the promise of a comfortable retirement.
Provided they put their time in, many dedicated employees looked
forward to – and often were rewarded with – a pension at the end
of their careers.
Things have changed. Most enterprises abandoned Defined
Benefit Pension Plans because of the economics and many small
and medium-sized businesses never implemented a way for
employees to save through work for their retirement. The con-sequences
of these decisions may be more far-reaching than
employers have thought.
Nest Wealth recently completed a report examining working
Canadians to understand their biggest worries and their retire-ment
preparedness. The findings are the result of a survey they
conducted of working Canadian adults ages 18 and older, as well
as existing studies in this area.
The research shows 42 per cent rank “money” as their greatest
single stress. That stress is driving Canadians to lose sleep, recon-sider
past financial decisions and argue with partners and friends.
When it comes to planning for retirement, it’s clear that there is
a nation-wide problem. The Nest Wealth study revealed that,
despite knowing what saving vehicles were available to them, 71
per cent of Canadians still don’t know if they are saving enough
for retirement.
Here’s where it gets fascinating for employers though: Only 43
per cent of people who don’t contribute to a Group RRSP have
started saving for retirement. With millions of employees without
access to a saving vehicle for retirement at their workplace, employ-ers
are missing a huge opportunity to help their own employees
feel more confident about their financial future and reduce their
level of daily stress and anxiety.
FINANCIAL WORRY IS THE LEADING
CAUSE OF STRESS ACROSS THE
COUNTRY AND THE IMPACT OF
THIS EXTENDS FAR BEYOND THE
PERSONAL LIVES OF EMPLOYEES.
alphaspirit/123rf.com
HRPROFESSIONALNOW.CA ❚ DECEMBER 2018 ❚ 45
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