For the Saskatchewan manufacturing, industrial, mining, and energy sectors
Help wanted! If you’re an employer coping with the shortage of skilled labour in Saskatchewan, particularly in the manufacturing, industrial, mining, or energy sector, you’re not alone. Where specialized skills and experience are crucial, finding qualified employees is a big problem for production and can close the door to potential growth.
It’s evident that there are significant hurdles to overcome. We’re facing a “record wave of looming retirements”1; we’re attracting fewer workers into skilled trades; and beyond the scarcity of craftspeople, finding a suitable recruit with the right attitude and work ethic is challenging.
With record-high inflation and rising interest rates, the allure of higher wages for experienced tradespeople often leads to employee attrition after significant employer investments in training. Money has remained the top source of Canadians’ stress for the sixth year, according to FP Canada’s “2023 Financial Stress Index.”2 Furthermore, one in three Canadians (36%) experience mental health challenges, such as anxiety or depression, related to financial stress.
Should you be addressing employees’ financial stress as a part of your recruitment and retention strategy? In the current market, peace of mind is more important than ever and will continue to be at the forefront of your employees’ minds as a factor in attraction and retention.
Employees need safety and security to bring their best to work. Employers can save hundreds of thousands of dollars per year when they bring employee financial wellbeing to the forefront. People are struggling to afford groceries, gas, and other goods and services, and they have less disposable income. Manulife’s survey “Stress, finances, and wellbeing” says financial stress could cost employers up to $1,786 per employee per year in lost productivity.3
More and more employers are becoming interested in financial wellbeing as a driver of productivity, employee engagement, and employer differentiation in the marketplace. There is a growing understanding of the importance and need for long-term financial security among the workforce, and employers are willing to invest in their employees.
The idea that retirement savings plans are critical for attracting and retaining employees is not new. However, the interviews conducted with local employers shed light on the particular challenge of addressing employees’ financial stress. It’s easier to offer guidance when an employee has just joined you or received a promotion. They may also be more receptive at key life stages, such as buying a house or starting a family. But on an ongoing basis, how do you educate employees, help them build confidence and resilience, and reinforce the value you provide as their employer?
Employers are relying on more personalized support from their pension advisory firms to educate and empower employees. In addition, employers are dedicating work hours to providing employees with opportunities to access financial advice beyond choosing their investments.
Financial wellness platforms, another emerging category in workplace wellbeing, are becoming more popular. They are designed to provide cost effective avenues to alleviate financial pressures for employees through solutions ranging from self-guided learning in financial literacy to AI platforms that can automate personal finances, right from payroll.
Educating employees on total compensation regularly is a key component. Employees often don’t fully understand the comprehensive value of their compensation package beyond the base wage. According to the 2023 Benefits Canada Healthcare Survey, when asked to choose between extra annual cash or their health benefits plan, $5,000 appeared to be the tipping point: 52% of respondents opted for the plan and 48% for the $5,000.4
So talk about it! Encouraging open conversations about all your company offerings and normalizing discussions around them can contribute to employees making more informed career decisions, being more productive at work, and recognizing the security and value you provide.
Fist published in The Potash Producer, 2023 Volume 3.
1 Statistics Canada. “In the midst of high job vacancies and historically low unemployment, Canada faces record retirements from an aging labour force: number of seniors aged 65 and older grows six times faster than children 0-14,” The Daily, Apr. 27, 2022.
2 FP News. “FP Canada™ 2023 Financial Stress Index finds money remains the leading source of stress for Canadians,” Cision, June 15, 2023.
3 Manulife. 2022 Stress, Finances, and Well-being: Driving Behaviours that Matter. Manulife, 2023.
4 Benefits Canada. Healthcare Survey 2023. Contex, 2023.