Paula Aven Gladych’s June 12 Employee Benefit News article reports that companies that have sponsored a financial wellness program since 2015 are seeing an increase in the financial health of employees who consistently take advantage of the program, according to Financial Finesse.
They also are seeing a major return on their investment because employees who are in better financial health won’t delay their retirement. Forty-three percent of repeat users are on track for retirement, compared to just 19% of employees who are engaging in the financial wellness benefit for the first time.
According to the article, there has been a shift in employee mindsets over the past decade and they are now excited to take control of their finances. More companies are using financial wellness programs as an ongoing benefit that is available to all employees on an unlimited basis, and it is done in a very personalized way. Technological advancements have made it easier to personalize financial information and that, coupled with workshops and one-on-one consultations, has made it easier for companies to reach a broader spectrum of people.
Eighty-five percent of people are not going to do what needs to be done on their own. They need personal engagement. The people who are costing employers the most are the ones who struggle with foundational issues like debt and cash management. They bring their financial stress with them to the workplace.
Companies want to know that they are getting a return on their investment and, according to the article, one way to gauge how well a program is doing is by looking at employee absenteeism, garnishments and participation in the company’s other perks like health savings accounts and flexible spending accounts. All of these things have an impact on an employer’s bottom line. A company that employs 10,000 people can save $500,000 a year by getting employees on a more sound financial footing.