With the return of the holiday shopping season, employees may be tempted to spend more than they planned, despite the rising cost in living.
According to a recent survey by Deloitte Canada, Canadians plan to spend, on average, $1,478 for the holidays this year, up 10 per cent — or $131 — from 2023 but still lower than 2022 ($1,520) and 2019 ($1,706). The survey, which polled more than 1,000 Canadians, found, while the rising cost of housing and/or rent (55 per cent) was respondents’ No. 1 financial concern, paying for holiday gifts (35 per cent) edged out credit card debt (31 per cent).
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Benefits offerings such as financial counselling and employee assistance programs can play a role in supporting workers’ finances at this time of year, says Cissy Pau, principal consultant at Clear HR Consulting Inc. “I’ve seen [employer] clients bring in advisors to run lunch and learns and workshops and talk about saving for retirement. I think that’s helpful regardless of the time of year.”
According to the 2024 Benefits Canada Healthcare Survey, personal finances (43 per cent) has remained the top source of employee stress since 2018, when the question was first posed. The survey noted this particular source of stress has steadily ticked upward over the past three years, from 35 per cent in 2022.
It’s also important for employers to consider workers’ finances when planning holiday activities, she says, noting some employees may feel resentful towards lavish functions or requests to contribute their own money as they face increased food and housing costs.
“We’ve heard [employer] clients say they’re going to have a holiday party [and employees were overheard saying], ‘How much are they spending on that holiday party? Is that the best use of funds? What if, instead of that, they gave it to employees as a bonus?’
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“We’ve also heard of employees [who were asked] to participate in activities like a white elephant or secret Santa gift exchange and the employees said, ‘I have to spend $20 on a thing that I really don’t care about so that I can participate in this activity that I don’t really care about.’ I think when financial times are good, you’re not going to get those complaints. But when the employee doesn’t have money to spare and it’s $10 here and $20 there, it adds up.”
Pau notes employees’ personal financial situations are just one element contributing to heightened workplace stress this time of year. In addition to tools and resources like EAPs, it’s important for managers to spot the early signs that an employee is struggling.
“The holidays can be very overwhelming for a lot of people, for many different reasons. We certainly get an increase of calls early on in the year that people have really struggled over the holidays. If you notice somebody acting out of character, don’t let it slide. Ask them, ‘Are you OK? You don’t seem like yourself,’ just to make sure that the person knows that somebody’s paying attention.”
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