As more and more companies are investing in financial wellness, the importance of measuring efficacy is rising.
To implement a financial wellness program is an excellent first step. They are in high demand.
Three out of four workers say they want more financial health resources.1 They also help reduce absenteeism and health insurance claims.2
But it is equally important to know how well your program is working. A useful financial wellness program will reap many positive results – from happier employees to better retention rates.
Here are six ways to measure how well your financial wellness program is working.
1. General site traffic
The easiest measurement is to look at site traffic.
A financial wellness program should have a strong online presence to meet people where they are. That is especially important now when so many are working remotely.
Measuring site traffic will provide the data on how many people are engaging with the program, which is the steppingstone to the positive changes the program is looking for.
2. Course consumption
Along with site traffic, you can dive deeper into participation by looking at course consumption.
This is like site traffic but more detailed, showing what courses employees are going through. This has the added benefit of showing administrators what courses are in the highest demand.
Use the reporting features of your wellness program to tailor incentives and campaigns further.
This reporting can also include data on comprehension in addition to just engagement, making it even more valuable.
3. Retirement plan participation
Evidence of actual knowledge gain can be measured through retirement plan participation.
A financial wellness program should encourage more people to save more for retirement. Encourage financial wellness and watch those 401(k) savings rates rise. This has the added benefit of helping workers feel more prepared for retirement, a common cause of stress.
4. Reduced absenteeism
Financial stress takes a toll on people. Employees who are financially stressed are more likely to miss work.2
Absenteeism is a good measure to see how well your financial wellness program is working. The more people learn to be financially well, the less work they will miss.
5. Fewer 401(k) loans
Similar to retirement plan participation, a reduction in the number of 401(k) loans workers take is a good indication that they are learning good habits from your financial wellness program.
Often people who are stressed about money turn to their retirement plans for emergencies without realizing the negative effects it can have.
More than half of workers surveyed in 2020 expected to use their retirement funds for something other than retirement.3
When in doubt, go right to the source. Surveys about the financial wellness program itself can be useful, but there are other indicators of financial knowledge gained even beyond that.
Ask about morale and job satisfaction (these go up when workers are less financially stressed). Or survey about debt levels before and after the financial wellness program is implemented.
Offering a financial wellness program to employees is becoming more and more common.
There are many different aspects to these programs, and it is important to know what is or is not working for your employees.
Leverage the reporting features of an online financial wellness program and combine that with watching for behavior changes among your workers.
With the right program, you will be able to watch the positive impacts for your workers and your company.
1 - https://www.plansponsor.com/in-depth/giving-employees-financial-wellness-help-want/
2 - https://www.hrmorning.com/articles/financial-wellness-program-benefits/
3 - https://www.pwc.com/us/en/industries/private-company-services/images/pwc-9th-annual-employee-financial-wellness-survey-2020.pdf