Empowering Employees: The Case for Financial Wellness Programs in Today’s Workplace

On January 20, HRPA’s CEO Jodi Kovitz connected with Wealthsimple Chief Commercial Officer Paul Teshima for an engaging LinkedIn Live discussion about Human Resources role in financial wellness. They shared thought-provoking insights on what HR professionals need to consider when building financial wellness programs for their teams. Here’s a recap of the key takeaways and data points you should know. 

In today’s fast-paced world, every employee has unique financial goals and challenges. 

It’s essential for HR teams to recognize that while they can’t tailor financial wellness programs to every individual’s needs, they can create accessible and flexible solutions that resonate with a diverse workforce. By offering broad-based financial wellness initiatives, HR can provide employees with the tools and knowledge they need to take charge of their financial future without imposing any one-size-fits-all approach on their personal finances. 

Why Financial Wellness Matters 

Financial wellness isn’t just a buzzword; it’s a crucial element in designing a compelling total rewards strategy for any organization. In particular, small and medium-sized businesses (SMBs) in Canada, which encompass a staggering 98 per cent of the country’s business landscape, may find themselves feeling overwhelmed by the prospect of implementing effective financial wellness programs. However, even without existing initiatives, HR can make significant strides toward enhancing employees’ financial security and boosting overall productivity. 

Getting the Ball Rolling on Financial Wellness Programs 

At first glance, the task of launching a financial wellness program may appear daunting for many SMBs. Unlike large corporations that often have established offerings, smaller businesses sometimes struggle to find suitable providers. Fortunately, the industry is evolving! Many financial wellness providers now offer ‘crawl, walk, run’ solutions, enabling businesses to start with simple, non-matching plans focused on financial literacy and digital self-service platforms.  

This means your organization can gradually build its financial wellness offerings, paving the way for more comprehensive programs like matching contributions in the future. 

Making the Switch: Transitioning to a New Provider 

If your company already has a financial wellness program in place but is considering a switch to a new provider, you may be worried about the potential complications and administrative burden involved. More often than not, these concerns stem from fear and uncertainty rather than actual difficulty. Many employees aren’t even aware that they can transfer their Group Registered Retirement Savings Plan (GRSP) funds to a new provider while still receiving employer contributions. 

Transitioning to a new financial wellness provider can be a smooth process with the right communication and technology. By creating a marketplace of diverse financial wellness options, organizations empower their employees, giving them greater choice and control over their financial futures. 

Striking the Right Balance in Employee Savings Options 

A critical question arises: should employers dictate savings options, or should employees make their own choices? The answer lies in finding a balance. Employees need guidance, but they also deserve the autonomy to make their own financial decisions. 

Wealthsimple for Business takes an integrated approach by conducting suitability assessments for each individual plan member, evaluating their goals, risk tolerance, and retirement timelines. This ensures tailored recommendations that align with individual needs. By providing structured guidance and access to financial advisors, employers can equip their workforce with essential knowledge while helping safeguard them from uninformed financial decisions. 

Why the Time is Now: The Business Case for Financial Wellness in 2025 

The urgency for financial wellness has never been greater. In a recent Wealthsimple survey, 65 per cent of top Canadian talent are experiencing financial stress, with one in three employees admitting that these worries affect their productivity at work. In our rapidly changing economic landscape, ensuring employees’ financial security can lead to improved concentration, engagement, and overall job performance. 

Financial wellness should not be viewed merely as an employee benefit; it’s a strategic differentiator. A strong financial wellness program can enhance talent attraction and retention, ultimately driving business performance. As HR leaders delve into future compensation strategies, connecting financial wellness initiatives to key business metrics—like revenue growth and profitability—will solidify the case for investment. 

Charting a Course to Prosperity with Financial Wellness 

In the end, investing in financial wellness is an investment in your workforce’s future—and, ultimately, in your organization’s success. Let’s empower our employees to thrive, both at work and in their personal financial lives! 

If you need some help figuring out what to do, Wealthsimple for Business has put together this cheat sheet.

For HR professionals eager to learn how Wealthsimple for Business can support your organization’s efforts, reach out to the team there or dive into some of their resources.