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Make work worth more 5 ways to improve employee financial wellness

Contents 5 ways to improve employee financial wellness...............................................................................................4 Financial readiness is mission readiness............................................................................................................7 1

Tip #1: Teach the basics.........................................................................................................................9

Tip #2: Introduce a savings benefit program.......................................................................................... 11

Tip #3: Make money about more than money................................................................................13

Tip#4: Offer an automated savings plan........................................................................................15

Tip#5: Add more flexibility to your benefits.....................................................................................17

The business benefits...............................................................................................................................................17

Making work worth more

5 ways to improve employee financial wellness Business owners pay their employees, offer them benefits, and if the employees work long enough, they become eligible to contribute to a retirement program— like a 401(k) or RRSP — often with some employer matching. That’s about the extent of involvement employers have in the financial wellbeing of their employees. But why isn’t it more? According to a recent survey by e-commerce platform Jungle Scout, more than half of American consumers are living paycheck to paycheck. People who struggle with their finances have more on their mind than the job they’re supposed to do each day. This reality was confirmed by a another Canadian study that reported lack of financial confidence can generate workplace stress. This can have cascading consequences for the employer, including “lack of engagement, distraction and, ultimately, impaired productivity and higher absenteeism”. Another financial confidence study in Australia reported that, regardless of job role, income or generation, many employees are uneasy about their current or future financial wellbeing. 4

Reducing financial stress is good for the business because this pressure can distract employees — negatively affecting their wellbeing, decreasing productivity and impacting organisational wellbeing. Findings show how past and present financial stress affects employees in different areas of their lives:

63% 44% 37% 36%

experience a negative influence on mood and demeanour experience an inability to meet home or family commitments report that monetary stressors create health difficulties report that monetary stressors create relationship challenges

Internal strife caused by compounded financial woes often accompanies employees to their worksite, where it can lead to increased absenteeism as well as reduced productivity. It’s time companies took a more active role in providing resources to their employees to help them become financially secure so they can become more focused on their work. They will perform better and work harder for an employer that demonstrates concern for their fiscal well-being.

Financial readiness is Mission readiness One of the largest employers in the world — the United States Defense Department — teaches financial readiness to all the women and men in its service. It has an Office of Financial Readiness that offers tools, courses and resources to military members from the moment they start basic training to the time they transition into civilian life. Soldiers, sailors and Marines who are financially secure can focus on their jobs when they’re deployed, facing fire, or performing mission-critical tasks. Military personnel with high debts also pose a security risk. So, anytime someone in the military gets married, deploys, returns from deployment, has a child, moves to a new duty station, gets a promotion, etc. they are offered a course that teaches them how their new situation impacts their finances. They learn how to plan for those changes, adjust their budget, review their insurance, tweak their retirement plans, and more. There are good lessons here for the private sector. Building financial confidence and security removes the distraction of instability, and helps boost focus.

Making Work Mean More

Tip #1: Teach the basics If you have built a business, you

Retirement savings — We know

understand the importance of being

the importance of starting early. It’s

financially fit. You can’t get lines of

important to demonstrate that for

credit or loans if you don’t demonstrate

our employees and show them what

a good business model or healthy

they’re working toward.

business performance. Any sized company can host a series of short

Consumer protections — This is

(in person or virtual) Lunch & Learn

especially important for younger

financial literacy courses on:

employees who have large digital footprints.

Budgeting — It’s one of the easiest things to do but not a step enough

Credit scores — There are so many

people take. Sometimes it’s because

services that tout free credit reports

they’re afraid to see their money

and ways to boost your credit score.

situation but taking a frank look at

Having been around the block a few

finances is the only way for anyone

times, you can help your employees

to improve their financial situation.

separate fact from fiction.

Emergency savings — One of the

These topics may seem basic, but

reasons people live paycheck to

chasing a paycheck can become an

paycheck is from amassing high-

endless treadmill that is difficult to stop.

interest debt to cover unforeseen

Understanding the basics of financial

expenses. It may seem impossible to

wellness is an empowering first step for

build an emergency fund but we can

employees to take back control.

show it’s possible.

Tip #2: Introduce a savings benefit program Helping your employees save on the

This is truly purposeful purchasing —

everyday products they are likely going

giving new meaning to shopping for

to buy anyway make good sense.

everyday items, spending less than you would online or at the mall, and

Our latest product launch at

automatically funding the planting

CarltonOne is designed specifically to

of trees to fight climate change. In

help companies help their employees

addition to offering deep discounts,

save money. It’s called Kart, and

shoppers have access to free financing

is a free benefit program that lets

on thousands of items from global

employees shop more than 100,000

financial partnerships that include

daily deals on everyday items from

Affirm.

popular brands. Research has shown tech-savvy Shoppers can find discounts on

shoppers prefer the buy-now-pay-later

fashion, appliances, electronics,

access provided by microloans like

jewelry, gift cards and travel

those from Affirm. The convenience

experiences. Also, with just one $50

of payroll deductions will also be

purchase, users can unlock a year’s

added through CarltonOne’s payroll

worth of coupons for discounts

partnerships.

on local restaurants, events and attractions.

Tip #3: Make money about more than money Reframing the conversation and

Recognizing colleagues with an award,

mindset about money is a great

redeeming for a reward, achieving a

way to turn what can be a source of

wellness goal, completing a survey or

uncertainty into a positive.

giving feedback — every action funds the planting of new trees.

Creating additional value (beyond monetary) for every employee action is

Nearly 7 million trees have already

a great start. For example, transactions

been planted by our tree partner Eden

on every CarltonOne platform will fund

Reforestation Projects, funded by the

climate-change driven eco-action,

daily member activity in our employee

including the global planting of

engagement tools.

native trees.

Tip #4: Offer an automated savings plan One of the most common obstacles to

Employees can choose how much

financial wellness (and the confidence

to redirect, and have full access to

of feeling able to weather a financial

the funds should they need it. Many

crisis) is the lack of a formal savings

companies encourage this type

plan.

of basic savings plan by offering to match or top-up employee

A simple way to help your employees

contributions, or waive any bank fees.

save more money is to enable (or work with a financial institution to offer) an

There’s a dual benefit to these plans

automatic savings program. These

— employees can quickly see their

programs redirect funds from an

savings accumulate, while building

employee’s paycheck into an interest-

more confidence in their ability to be

bearing savings or investment account.

more financially prepared.

Tip #5: Add more flexibility to your benefits Unexpected health emergencies

extended job security, health expense

can also be financially debilitating.

reimbursement, or childcare benefits.

In addition to the cost of healthcare,

Companies that can help their

medication and rehabilitation, unpaid

employees and families when they

leave can significantly damage a

need it most, are often repaid with

family’s wellbeing.

higher retention rates and employee engagement. These unorthodox

Consider offering more flexible health

benefits can also help you attract new

programs that include paid leave,

candidates.

The business benefits When someone is ONLY working for their next paycheck, they fall into the category of being disengaged in their work. They’re going through the motions, not innovating or learning. If you can create a the opportunity

for more financial wellness and confidence, you give them more meaning in their work. And when you can make work mean more, you unlock extraordinary levels of loyalty, performance and ingenuity.

Make Work Mean More With Carlton One

Engage With Purpose Smart employers understand that they can’t engage an employee without engaging their sense of purpose. Making work mean more unlocks new levels of loyalty, innovative design thinking, personal and team performance, and revenue growth.

CarltonOne can ignite this for your company.

Our Core Principles Innovation

Responsibility & Sustainability

In boldness and bravery innovation thrives, which is why we seek to empower creativity and original thinking in the way we approach obstacles.

It is our responsibility as a company to use our business platform to make a real difference in the world.We take action so we can be sure we’ll leave this planet a better place.

Collaboration

Transparency

Our collective capacity for achievement is enhanced when we share the vision and the load., so we prioritize working as a team, playing as a team, and winning as a team.

We know trust is built in transparency, which is why we won’t vaguely promise eco-action; our action will be demonstrable and public as we inspire others to join our eco-action.

How Can We Help You? Emotionally engaged employees are more passionate about their mission, have higher productivity, demonstrate deeper creativity, and express a stronger sense of loyalty.

If you’d like help creating this in your organization, let’s talk. 250+ Employees 1,000+ Clients 185+ Countries 5m Members