With the ongoing economic slowdown, job seekers and employees may find it challenging to make ends meet. As the race for top talent heats up, the economy could influence your talent attraction and retention strategy.
Canada is experiencing high inflation like the rest of the world. Canadians feel they need to make more to get by, whether at the pump, at the grocery or even in the housing market. Canadian employers are also pressured to reevaluate their compensation strategies, especially in addressing the workforce’s financial wellbeing.
Recent reports find that employees are not satisfied with existing benefit structures. As an employer, you have the power to address these needs. You can choose to stick with the basics or explore innovative solutions that truly meet the evolving needs of your workforce.
In this article, we delve into key insights and outline tactics to help you support current workers and future talent in their financial wellbeing.
The Need for Financial Wellbeing
In an Indeed Canada survey, 55% of respondents did not feel they were paid enough. Additionally, while 63% prioritize fair pay, 45% value generous benefits. Employers unable to match competitive pay and benefits often offer 'perks,' which are additional incentives beyond basic benefits. And yet, only a small fraction of respondents in the same study receive additional perks such as stock options (8%) and childcare vouchers (4%), leading 31% to believe their overall compensation could be improved.
Companies that cannot increase salaries offer professional opportunities instead. And yet, even if your employees hope for support in training for their next opportunity, only 18% say they have received a learning and development budget.
These statistics reveal missed opportunities to attract and retain talent, but Canadian companies also face financial restrictions themselves. In the face of escalating demands for better benefits, many employers might not meet these expectations. Over half say they have no intentions of changing their offerings given budget constraints. For those who can, the opportunities to attract top talent are within reach.
As an employer, you have the opportunity to maintain a competitive advantage by enhancing your benefits offerings. If you align your benefits with the evolving needs of your workforce, you can navigate economic pressures and foster a positive workplace culture all while supporting your employees financially, above their salary. Remember, even small tactics can make a big difference, and if resource allows, comprehensive benefits can serve as a cornerstone for attracting and retaining top talent.
Prioritize Shifts: Adapting to Employee Expectations
Group plans are still a draw for mature workers, but the conventional understanding of finance and retirement is changing among younger workers. Among those aged 25 to 40, a recent survey by Leger on Wealthsimple’s behalf found that more than half of respondents said they won’t have enough savings to retire in the traditional way and will invest their money to maintain their lifestyle.
Consider offering professional guidance and financial literacy to address their financial wellbeing directly. These initiatives can empower employees to navigate financial challenges confidently. A RBC report found that almost one-quarter would like employers to provide access to financial advisors and debt-management services, and 20% are looking for financial wellbeing resources.
Financial planning goes beyond retirement savings. Financial wellness plans that provide financial coaching and develop financial literacy can reduce employee stress and improve wellbeing. Another survey showed that Canadians are particularly interested in investing advice (23%), how to offset inflation (19%), retirement planning (19%), and managing the cost of living (15%).
Prioritize Transparency: Creative Solutions for Financial Wellbeing
Amidst the evolving landscape of employee expectations, embracing transparent solutions is paramount to their wellbeing. Transparent salary structures foster trust and clarify employees' financial standing within your organization. On the recruitment front, a transparent salary structure is a great way to attract talent.
Do you already post salaries or salary ranges? You are not alone. Indeed’s Hiring Lab found that nearly half of Canadian job postings on Indeed now mention pay. Employers typically outline the pay range, though the Hiring Lab found that pay ranges are less precise and tend to be wider among higher-paying occupations.
Prior Indeed research found that job postings that included wage estimates received more applications per day and were active for shorter periods of time than comparable postings that didn’t mention pay at all.
Prioritize Societal Benefits: Addressing Housing Challenges
With the persistent housing crisis in Canada, some employers are looking into taking proactive steps to alleviate that burden on their workforce. Initiatives such as providing affordable housing units or assisting employees with housing-related expenses can significantly enhance employee satisfaction and retention. However, it's crucial to ensure that such benefits are accessible across all levels of the organization rather than solely catering to senior hires or knowledge workers.
If housing is too much of a task to implement, employers may consider prioritizing flexible work. It’s good for employees' wellbeing and their wallets. A recent study found that Generation Z and millennials would expect a 10 percent salary increase, on average, if they could not work in a hybrid working arrangement.
Implementing flexible and remote work arrangements can serve as a cost-effective strategy to alleviate the burden of rising housing costs, offering employees greater flexibility and work-life balance.
Financial Wellbeing in Difficult Times
As the talent attraction landscape continues to evolve, Canadian employers should consider prioritizing the financial wellbeing and incentives offered to their workforce. Employers can attract and retain top talent in a competitive market by reevaluating existing benefit structures, embracing innovation, and addressing housing challenges whichever way they can.
By prioritizing the holistic wellbeing of their employees, companies not only foster a positive workplace culture but drive long-term success and sustainability.
