Nearly all (95 per cent) Canadian employees recognize their financial situation significantly impacts their personal well-being and 92 per cent of human resources leaders agree, according to a new report by Dialogue Health Technologies Inc.

The survey, which polled more than 1,600 working Canadians, across all age groups and provinces, found more than a quarter (28 per cent) said they’re experiencing mental-health symptoms that interfere with their daily functioning — the highest rate since mid-2021 — and a similar percentage (27 per cent) reported their productivity has declined due to their mental health.

Read: A third of Canadians report worsening physical, mental and financial health: survey

More than a third (37 per cent) of respondents cited financial constraints as a barrier to prioritizing their health and a quarter said their financial situation has declined in the past year. The No. 1 factor they cited as impacting their mental health was their financial situation (47 per cent), followed by their physical health and family and work situations (both 39 per cent), bullying or harassment (35 per cent) and work-life balance (34 per cent).

Indeed, half (49 per cent) of employees have experienced financial stress in the past 12 months, with the main factors being rising cost of living (80 per cent), unexpected expenses (52 per cent), daily expenses (48 per cent) and lack of savings (46 per cent).

Read: 70% of U.S. employees say financial stress negatively affects work performance: survey

Just 24 per cent of Canadians reported feeling satisfied with what their benefits plan currently offers for their financial planning needs. Notably, even though 62 per cent of employers said they offer financial counselling services, most employees perceived them as inadequate or were unaware of them.

Employees said they’re open to receiving financial advice/support for retirement planning (73 per cent), investing and saving (68 per cent) and financial goal setting (61 per cent). However, 20 per cent said current support is insufficient, 16 per cent didn’t know if they have support and 39 per cent didn’t have any support at all.

Nearly half (46 per cent) of Canadians believed their workplace should offer an employee assistance program that includes access to financial advisors and counselling. Among the 13 per cent of respondents who’ve used an EAP for financial well-being support, a majority (83 per cent) said they’ve found it helpful.

Read: 2023 Healthy Outcomes Conference: Supporting employees’ financial well-being amid rising inflation, interest rates