A message to leaders,

 

 

Dance like nobody’s watching!! 

 

Behave like everyone is... 

Covid's Curse

 Most of us know someone who has suffered a severe medical incident.  Perhaps it was a heart attack or a stroke; cancer or another catastrophic disease; a crippling accident or injury.  We know that these near-death incidents often have life changing consequences and take time to heal...if full recovery is even possible.  The route back to health entails patience, skilled medical intervention, determination on the part of the patient and time, lots and lots of time.  Recovery seldom is complete in the timeframe we hope for and lingering effects are not uncommon. 

I remind us of these truths because we can have short memories.  Now, in September 2024, we are only 16 months since the WHO declared that the Covid pandemic had ended.  In March of 2020, the whole world was dealt a massive body blow similar to that caused one of those catastrophic type events like those mentioned above.  The difference was that our leaders were faced with a crisis unlike anything that had been experienced in over a century and we had neither the knowledge nor the tools to effectively respond.  There was a lot of ‘hit and hope’ in the early days as the world struggled to find its footing on the proper response. 

In the US alone, it is estimated that there were well over 100 million infections that led to over 1.1 million deaths.  That is the equivalent of over 7500 Boeing 737’s crashing and killing all on board.  Almost 26% of those infected experienced ‘long Covid’ further complicating the recovery. 

I make these observations as a reminder that recovery takes time.  Although the pandemic was declared over last year, the impact of the Covid assault on our society was massive in economic terms, in health terms and in the overall impact on relationships and societal norms.  Governments injected massive amounts of money to assist those in need due to lockdowns.  Supply chains broke down and were slow to recover.  These led to inflation which in turn led to higher interest rates and borrowing costs. 

Yet, there was an expectation that we would quickly return to normal.  That hope is reasonable, but that expectation is not.  Just as a person who has had a severe stroke will take time to regain the ability to walk or talk or even feed themselves, the crisis imposed by Covid in all sectors of our society has taken time to regain its balance.  We will never return to the ‘normal’ of pre-Covid because you simply do not sustain that level of disruption and come out of it ‘ok’.  Things are returning to something akin to before, but call it the ‘new normal’ because some of the impacts are life altering. 

We have massive debts; income inequalities; job losses and personal losses that won’t go away; loved ones died...they aren’t coming back. Things are improving but not as fast as we would like. We must come to terms with this new reality and live with patience and grace as we build a better and enduring society for everyone.  

Pension...not just another four-letter word!

 

According to Statistics Canada, less than 40% of Canadians have a pension plan. In a civilized society, this fact is chilling.  More than that, it is akin to employee abuse and should viewed as morally and ethically wrong and without any legitimate excuse. I consider this to be an employer problem more than it is an employee issue.  Because it is easy to address and so critical to the long-term financial well-being of the employees, employers should be ashamed that they have failed to implement a plan up to now.   

The largest percentage of plan members are either government employees or union members.  Quelle suprise? Many large private sector employers provide pensions.  This begs the question ‘...why are almost 60% of employees not covered by a pension plan?...  In a word ‘neglect’! 

Quick review.  There are two principal kinds of pensions: defined benefit and defined contribution.  In the former, employees contribute X % of their wages to the plan and in return the company guarantees to pay out an amount upon retirement that is based on a combination of years of work, amount contributed and expected payout period.  This type of plan is the traditional approach.  

The defined contribution plan has the employee contribute X% and the employer promises to match that amount, usually to a limit in the range of 3-5% of the employee’s wage.  In both plans, the funds are invested to generate a return for the future.  However, with the defined contribution, there is no guarantee on the part of the employers to a specific monthly payment. 

In either case, the amount of the employee contribution is made pre-tax and therefore taxable income is reduced at the time of contribution.  This means that someone making a 5% contribution will only see a reduction in net pay of about 3% and that amount is more than offset by the employers' matching contribution. 

A responsible employer has a duty of care with respect to their employees.  It is not just a case of being kind; it is a superb means of attracting and retaining the quality candidates that make a company successful in the long term.  It just makes good business sense! 

Plans are not difficult to implement and you can work it up over time.  Start with offering a match of 2% then move up.  But encourage your employees to input the maximum that the tax laws in your jurisdiction allow.  As the leader, you are in a position to build financial literacy amongst your staff.  Showing that you care about their futures, and investing in those futures, is a key element of being a great employer. 

The statistics show that this benefit is not one being widely offered in the workplace.  It is a simple and relatively inexpensive way of separating yourself from the crowd. 

Responsible, meaningful and forward looking.  What’s stopping you now?