We spoke with Kristin Dolynski, head of RBC Group Advantage, about how common financial stress is among employees, what that means for employers, and wha
Affordability and cost of living are huge issues right now, even for people with steady full-time work. Can you walk us through the recent survey work you did that explored how financially stressed people have become?
Kristin Dolynski: When Canadians think about sources of stress, financial concerns dominate. The pressure is relentless: housing affordability, rising costs of living, saving for the future while covering today's expenses. Yet what's most striking isn't just the worry – it’s the workplace impact.
Through our annual Workplace Realities Poll, we discovered that nearly nine-in-ten employees feel stressed, with three-in-ten experiencing financial stress "often or always." The cost? Lost productivity, absenteeism, and disengaged teams.
Employers recognize the toll this is taking. The challenge isn't awareness – it’s action. Many traditional wellness programs miss the mark because they don't address the root cause: financial insecurity. This is where the conversation needs to shift. Financial wellbeing isn't a benefit; it's a business imperative that directly impacts performance, retention, and culture.
When you talk about financial wellbeing, what does that actually mean? Does it go beyond income level?
Financial wellbeing means having the ability to meet your everyday needs, build savings and feel financially secure. And yes – it goes well beyond income level. Our research consistently shows employees are looking to their employers for far more than a paycheque.
The real opportunity lies in helping people gain control over their finances. That's what transforms anxiety into confidence. Once employees feel they can manage their cash flow, plan for major milestones like homeownership or education, and think strategically about retirement, building wealth naturally follows.
And this is where programs like group savings make a real difference. They provide the guidance and tools employees need – from cash flow management to investment strategies – to take control of their financial future.
But here's what's equally important: financial wellbeing doesn't exist in isolation. Mental wellbeing and work-life balance are equally crucial to reducing stress. The most effective employers recognize this isn't an either/or conversation. Supporting both financial and mental wellbeing creates a workplace where people can truly thrive.
There's a significant disconnect in your report on how much employers say they prioritize the financial wellbeing of their employees, and how supported their employees actually feel. Walk us through that, and how do you explain that discrepancy?
The gap is stark: 91% of employers say employee financial wellbeing is an organizational priority, yet 58% of employees tell us they don't feel that support in their day-to-day work. That's not a messaging problem – it’s an execution gap.
The disconnect often comes down to what support looks like. Many employers have focused heavily on retirement planning for years, which is important but incomplete. Employees are juggling immediate financial pressures – covering today's expenses, managing debt, building emergency savings – while also planning for tomorrow. When employers aren't addressing those urgent, present-day concerns, the commitment to financial wellbeing feels abstract.
What's encouraging is that employers are waking up to this reality. We're seeing strong momentum toward more comprehensive solutions: emergency fund programs, financial education, debt assistance and accessible advice. These complement retirement benefits rather than replace them.
The takeaway? Intent and impact are two different things. Employers genuinely care about the financial security of their employees, but the real test is whether they're meeting people where they actually are – not just where they hope to be in 30 years. Organizations that bridge this gap will see stronger engagement, retention and culture.
What are the costs for employers of having a workforce that feels financially stressed?
There's a compelling business case here. Financial stress doesn't stay at home – it follows employees into the workplace, with measurable consequences.
The immediate costs are clear: lost productivity, absenteeism and difficulty concentrating. But the ripple effects extend further – disengaged teams, reduced performance and, ultimately, turnover. And turnover is expensive. For small and medium-sized businesses especially, losing a valued employee isn't just a headcount problem; it's a disruption that cascades across the organization.
But here's what's often overlooked: financial stress erodes loyalty. When employees feel unsupported, they leave for employers they believe will take better care of them. In today's competitive talent market, that's not theoretical – it's a real business risk.
The flip side offers a powerful opportunity. When employers actively support financial wellbeing, something shifts. Employees feel more in control, more present and more committed. They show up with focus and energy instead of anxiety. They stay longer. They contribute more fully.
This isn't a benefits program tucked into HR – it's a strategic business lever. Organizations that invest in their employees' financial security build more resilient, loya, and productive teams. In other words, supporting financial wellbeing directly impacts the bottom line.
For many younger workers, the idea of getting a pension — forget a defined benefit pension, but a pension of any sort — is out of the question. Given that, how should younger workers think about balancing their current financial needs and the stresses we've talked about with the need to plan for retirement?
This requires a fundamentally different conversation – because younger workers are navigating an entirely different reality.
They're facing immediate financial pressures while simultaneously knowing they can't rely on traditional pension security. Yet they're also thinking differently about their future. Many envision leaving full-time work well before 65, pursuing entrepreneurship, part-time work or passion projects. They have agency in how they build their careers – but that comes with responsibility to plan accordingly.
Here's the tension: they have the longest runway to accumulate wealth through investing, yet they often have the least financial capacity to save right now. So, the conversation can't be "save aggressively." It has to be "start small, start now, and stay consistent."
Even modest contributions matter when compounded over decades. The challenge isn't the amount – it’s beginning early and building the confidence to take action.
This is where workplace support becomes critical. One-on-one financial advice helps younger workers do three things: understand their realistic timeline, set achievable milestones, and gain the confidence to start investing, even in small increments. It's not about lecturing on retirement; it's about translating younger workers’ vision of the future into a concrete financial strategy.
The bottom line? Younger workers need employers who recognize both their immediate financial stress and their long-term planning needs. That's how you build a generation that feels empowered rather than overwhelmed.
Understanding that younger and older employees aren’t looking at their future years in the same way, how can employers help support both ends of that spectrum to build more financial security?
The financial priorities across generations are genuinely different. Younger workers are focused on foundational milestones: saving for a down payment, starting a family, investing in their children's education. Older workers are navigating different pressures: paying off mortgages, maximizing retirement savings and often supporting aging parents.
Yet beneath these different goals lies a universal challenge: balancing today's reality with tomorrow's security. Whether it's covering rent, groceries or mortgage payments, immediate cash flow pressures often push long-term savings aside. For older workers especially, this creates an added layer of anxiety – the feeling that they've missed the window to catch up.
This is where comprehensive workplace support can make all the difference. A well-designed group savings program meets employees where they actually are in their lives, not where a one-size-fits-all benefit assumes they should be.
For younger workers, it's about starting early, as even modest contributions have decades to compound. For older workers, it's about maximizing what time remains and following tailored strategies to accelerate their progress. The advice evolves with life stages – it’s not static.
When employers invest in this kind of targeted support, they're addressing a critical need: giving people back control over their financial lives. Employees who feel that control show up differently at work – they’re more engaged, more present, more loyal. They're not distracted by financial anxiety; they're focused on their work.
That's the real return on investment for employers: a workforce that feels supported across generations, not just a program on the benefits list.
