As a financial institution that provides banking and wealth management services to customers, Meridian Credit Union ensures it also offers employees a comprehensive suite of services to support their financial wellness.
This includes a defined contribution pension in which staff contribute a mandatory three per cent of annual earnings, with the employer contributing between three and seven per cent, depending on members’ years of service.
The company also provides a voluntary group registered retirement savings plan; employees are eligible for preferred lending rates on up to $500,000 of qualified borrowing for mortgages, loans and lines of credit; and they also receive waived or discounted fees on a wide variety of credit card and daily banking services. And, using a dedicated channel, it encourages all staff to meet with an accredited financial planner for a complimentary personalized financial plan and to improve their financial knowledge.
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Financial well-being is one of the main pillars of Meridian’s overall well-being strategy, says Kristine Dionne, vice-president of total rewards and human resources. “Being a financial institution, it’s important we prioritize employee financial literacy as it serves our [corporate goals as well]. Enabling employees to feel confident about their own finances will benefit Meridian, its employees and its customers, driving our purpose to help people achieve [financial success].”
Indeed, financially healthy employees can translate into increased productivity and stronger attraction and retention, says Pat Leo, vice-president of Toronto retirement at Arthur J. Gallagher & Co. “Financial wellness is interconnected with other facets of well-being, so making it a priority can lead to better outcomes for employees and organizations.”
Concrete results
To promote financial literacy, Meridian’s total rewards team partnered with internal financial planning experts to offer quarterly webinars on a variety of financial well-being topics.
By the numbers
• 51% of employers offered employee discount programs, with 42% offering financial planning services and 40% offering financial literacy resources or seminars
• 37% of employers said financial well-being has become more important to the organization over the past year
• Only 9% of employees believe they’re ready for retirement, while 78% said they aren’t ready and 13% don’t know
Source: 2024 Gallagher financial well-being report
The credit union also partnered with its pension provider to offer live webinars highlighting its financial programs and the basics of saving for retirement. Plan members have access to a variety of retirement planning tools on the provider’s website, adds Dionne, allowing employees to establish savings goals, track their progress and close any gaps that may exist.
Read: Desjardins using budget workshops, interactive game to support employee financial wellness
Additionally, Meridian’s intranet provides relevant links to external financial resources and recorded versions of past webinars. The intranet features a microsite designed to help employees quickly locate relevant information on employee benefits and financial considerations when experiencing a significant life event.
Employee feedback about the organization’s financial wellness offerings has been very positive, says Dionne, noting roughly half of employees are taking advantage of preferred rate lending. Eighty per cent of group retirement plan members actively log in to the group retirement website and more than half are actively using the site’s financial planning tools. In addition, nearly half of employees make additional voluntary contributions to the group RRSP or a personal savings account with Meridian, while more than 300 employees attended at least one financial well-being webinar in 2023.
Canadian employers continue to use webinars and targeted communications as resources for financial wellness, as well as increasing offerings of financial planning or counselling services through providers, says Leo. A recent report by Gallagher found 42 per cent of Canadian employers are now offering financial planning services to their employees.
Financial roadblocks
However, economic instability and the impacts of inflation continue to be huge challenges to employees’ financial well-being, says Leo.
“We saw a very quick rise in inflation [over the past few years] and it hit a level we hadn’t seen in a long time. So that had a huge impact on cost of living, whether that meant shelter, food or transportation costs. And this economic instability has had differing impacts with multigenerational workforces, depending on where people are in their financial journey.”
Leo suggests employers have more discussions about the timing of financial communications, including exposing employees to financial wellness resources as soon as possible. “When considering financial planning services in the past, we thought of someone who’s approaching retirement sitting down with a financial planner and discussing the best strategy to retire, . . . whereas today, we want employees of all ages to be having those discussions. Financial planning can be beneficial for all ages, so it doesn’t make sense that the industry focused heavily on older generations in the past.”
Meridian has found a substantial appetite for financial information and education among its employees. However, interest can wane and knowledge can fade if staff are unsure how to implement the provided information, says Dionne.
Similarly, financial tools and programs can be underused if the offering isn’t carefully presented and accompanied by opportunities for employees to build knowledge and understanding. “Employers looking to build financial wellness efforts [should] ensure financial wellness tools and education opportunities are complimentary, easily accessible, well-communicated and easily understood. They should involve a mix of financial literacy and competency education designed to help employees build a healthy relationship with money and make life at work and home more stable and fulfilling.”
Sadie Janes is an associate editor at Benefits Canada and the Canadian Investment Review.