By Drew Finerty
2020 has been a year like no other. The business world has been turned upside down with historical challenges not experienced since the Industrial Revolution. Business owners have faced unprecedented employment decisions to meet their economic stresses. A global economic shut down for three months, followed by another 3 months of measured closures, have presented revenue drops that made companies face harsh realities with their staff. Resulting unemployment claims have hit all-time records here in Canada and across the world. So, where do companies go from here?
Is this a New World?
In a word: YES! Since the middle of March, business and trade have gone through a new renaissance of sorts. When the shut down happened, businesses that could, were forced to send their employees to work from home. Those that didn’t have that luxury, just closed their doors. If this scenario continues throughout the next 6-24 months, what does it mean for the traditional business in retaining and attracting employees? Frankly, it will come down to how employees feel they are treated by existing and new employers. Going out with the old-school company traditions in this new world, will be historical behaviors that resulted in employees missing out on benefits that lead to financial security.
What does a New World Employer look like?
Historically, in North America, companies have favored Capital over Labor. Not so in Europe and Asia. Business in those jurisdictions have traditionally leaned more to employee perks like livable wages, shorter work weeks, more vacation time, earlier retirement, better benefits and less stress in the workplace…with far less turnover. The indisputable results have been increased productivity, higher morale, loyalty & work satisfaction on the job.
77% of Canadians would consider changing jobs for BETTER RETIREMENT support!
Are there any doubts employees would prefer to plan for retirement through their workplace? Their contributions come right off their paycheck before they get a chance to spend the money on other choices. This strategy also directly reduces an employee’s taxes at source, as the contribution reduces their “taxable income”. The growth/earnings are also “tax sheltered”. Add in that many employers have some form of matching contributions arrangement, based on a percentage of the employee’s income (this benefit is “taxable”) and this makes the program very attractive to both employees and employers.
61% of workers cited money as their main stressor. Stressed employees are less productive. A UK study found 1/3 of employees claimed their productivity was damaged due to money worries, while 32% admitted to calling in sick due to stress with 36% of those citing financial pressure was their main reason.
81% of employees have taken time off due to financial stress.
72% of employees say Retirement Benefits are an important factor in loyalty.
50% of employees would leave their company if another firm offered them the same salary and a better Retirement Savings Plan.
If you are a small business owner and would like more details on how you can offer your employees benefits that your competition is not, contact us through any of our channels and let’s set up a meeting to discuss your options and provide your employees with real financial security. You will find recruiting much easier at the same time, as most workers are looking for progressive thinking companies to commit their skills and time over their career.
We can offer Financial Advice and set up quality plans like:
1. Registered Retirement Saving Plans (RRSP’s)
2. Tax Free Saving Plans (TFSA’s)
3. Deferred Profit-Sharing Plans (DPSP’s)
Each of these plans have similar and different features and benefits. We assist the business owner in finding the right plan and offer each employee our services to help them to identify and achieve their financial goals over the short, medium & long term.