Head to head: Are employers’ financial literacy initiatives translating into reality?

One expert suggests employers bridge their knowledge gap by finding ways to turn education into action, while another says companies’ commitments to ongoing financial literacy is helping to do just that

In the early stages of financial wellness awareness, financial literacy was the umbrella term often used to describe any financial education initiatives delivered in the workplace.

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‘Literacy’ was seen as a panacea for helping Canadians bridge gaps in knowledge about financial planning concepts and their general understanding about the financial services industry more broadly. For many employees, managing multiple financial assets and obligations is highly stressful, especially with a lack of formal education about financial planning concepts and the persistent taboo around discussing money issues within families and communities. Reducing the knowledge gap through education can certainly help.

However, there are real limitations with a strategy that relies solely on education. Articles and group education sessions do a good job of shoring up knowledge gaps, but without follow-up support, employees often forget what they’ve learned over time. In addition, education delivered for the masses is unlikely to be relevant for people if it doesn’t connect with their personal circumstances or address their specific causes of financial stress.

One of my early mentors put it this way: the goal of workplace financial wellness should be to help employees make better financial decisions. It’s describing the difference between a registered retirement savings plan or a tax-free savings account versus helping people understand how to use them to achieve personal savings goals.

Read: Canadians still not knowledgeable about RRSPs, TFSAs: survey

This more nuanced education requires resources, tools and interventions that resonate across the diversity of a workplace and delivers sustained education across multiple platforms. The use of personas or case studies; pairing education with practice sheets, workbooks or online tools; or providing access to individual financial coaching will help employees turn education into action — and action into achieving their goals.

Aaron Snaith (pictured left), director of total rewards, CSA Group

With many Canadians facing several economic factors, it isn’t surprising they’re taking a closer look at their personal finances.

Many employers are commited to providing ongoing financial education as employees look to strengthen their financial literacy. At CSA Group, we’re leveraging data and feedback to curate a suite of educational initiatives and benefits that meet the diverse needs, preferences and learning styles of our workforce.

Above and beyond more traditional initiatives, such as basic retirement planning seminars and a wellness reimbursement that includes financial-related services, CSA Group’s total rewards team is leaning on technology and data in a big way. For example, we recently implemented an interactive total rewards statement/tool that lives on our human resources information system. At a glance, it helps employees understand the various benefits and resources available to them. We’re also leaning on data insights from our benefits providers to better understand the habits, needs and concerns of our employees, allowing us to roll out educational programming that’s relevant and useful.

In addition, we’re collaborating with our employee assistance program provider to promote available financial counselling and coaching services and seminars. Earlier this year, we co-hosted a series of seminars focused on financial well-being, covering topics that ranged from dealing with financial anxiety and managing money in tough financial times.

Read: CSA Group doubles participation in DC pension

A commitment by employers to continue to enhance the financial literacy of employees isn’t just an investment; it’s a cornerstone for building a resilient and thriving organizational culture and should remain a top priority. With advances in technology like artificial intelligence, the next couple of years will surely bring more innovation, with even more opportunities for employers to engage with employees in a personalized and meaningful way.