50 per cent of Canadian workers have experienced financial stress over the last year
New research has found an alarming number of Canadians who believe that their financial situation impacts their mental health, more so than any other determinant, prompting employers to rapidly address employees’ concerns.
A recent report released by Dialogue, conducted with Environics Research, highlights how financial insecurities are rising, greatly affecting employee well-being. According to the research, 95 per cent of Canadians see their current financial situation playing a role with their mental health, while 1 in 4 Canadians say their financial situation has declined in the past year, citing the rise in cost of living as the most important factor.
“We're seeing that overall health does include financial health, and that we're seeing that employees are relying on their employers for at least some assistance,” says Aws Al-Hasani Dialogue’s financial planner. “This gives opportunities for employers to take on services and promote them.”
Other factors that are contributing to financial stress, according to Dialogue’s report, include unexpected and daily expenses, lack of savings, debt, and low income. Al-Hasani says these factors impact employees’ productivity, engagement and happiness, which can spill over into the workplace.
“43 per cent of Canadians lack the financial means to access professional mental health care, and a third of all employees are reporting worsening or worsened mental health. I deal with people from all different types of incomes and we're seeing this impacting everybody. This is not just low-income earners who are struggling, everybody is really struggling,” says Al-Hasani. “One of the biggest requests that we're getting [as a result], is budgeting.”
Statistics Canada also recently reported that 40 per cent of Canadians found that the economic downturn has taken a toll on their mental health. Meanwhile, 1 in 3 are experiencing mental health symptoms that interfere with their daily functioning, including their work performance - the highest ever since 2021.
Al-Hasani noted inflation, the housing crisis and issues with interest rates all play a role impacting Canadians’ day-to-day mental health, which also causes their standard of living to be impacted. “When we look at mental health, and as we look at financial stressors, sometimes it's a cycle where it’s hard to tell what comes first. It’s important to remember, as a cycle, sometimes one impacts the other and the other impacts each other.”
“When we're looking at housing and other issues, it's always a multiple of incomes. Housing is always getting further out of reach for people's incomes. The truth is for what our cost of living is in Canada, we’re all paid less than where we should be,” Al-Hasani admits. “More money, less problems.”
Noting that the economic downturn has affected 40 per cent of Canadians’ mental wellness and 50 per cent who have experienced financial stressors over the last year, Al-Hasani is quick to point out that employees are underutilizing their employers’ EAP program. Despite 46 per cent who believe their workplace should offer an EAP that includes access to financial advisors and mental health counselling. The issue, Dialogue says, is that many organizations offer outdated and inaccessible support.
“These issues have been around essentially since COVID,” Al-Hasani said. “This is going to be a problem moving forward into the long term and I think employers need to really address it, and really put their best foot forward into educating and building awareness over these programs for their employees.”
Accordingly, employers should understand what the needs are of their employees by “inquiring and surveying the things that our employees need, promote it, and build upon those needs,” Al-Hasani highlighted. “Offer those services and say ‘My employees not only need financial education, but they need financial support.’ One is reactive, the other one is proactive. Education being proactive and reactive being, ‘I'm in this situation, how do I get out of it?’ These are all things that employers could essentially be doing.”
There are several opportunities for employers to consider and implement in the workplace and in EAPs. Dialogue’s report suggests offering financial counselling and financial literacy services, virtual healthcare and accessible mental health support, all available 24/7.
