Your Employee Financial Wellness Benefit Must Be Results Driven

When it comes to finances, the likelihood is that your employees are not doing well. A recent PYMNTS report¹ found that 54% of Americans live paycheck to paycheck. And this doesn’t just affect entry-level employees or lower wage earners – 40% of those making over $100,000 find themselves in the same situation.

Additionally, less than half (44%)² of Americans could handle a $1,000 emergency, and 52%³ don’t believe they are on track to retire on time. That’s why employee financial wellness programs have become a top benefit for employees who are looking to their employers for help.

However, not all financial wellness benefits are the same. If what you offer doesn’t help your employees develop better financial habits, then it is a waste of time for them and a waste of money for you. 

That’s why you need to be sure that the program actually does what it's supposed to do – help employees become financially well. To be sure that your program is doing that, check the financial wellness program’s results in the following five areas. 

Easy to Use

Financial wellness is not something that can be fixed in an afternoon or even a week. The concept of financial wellness is ongoing, and your employees are all at different places on this journey.

The program you use should be able to help employees with their specific issues in an easy-to-use way. 

How will you know if your financial wellness program is meeting this goal? Metrics.

• How many employees have signed up for the program?
• How often do employees sign in to the program?
• How many modules have been completed?
• How much time is spent on the program per employee?

You can also ask your employees subjective questions, such as “Is the program easy to use?” and “Do you find the information useful?”

Accessible

To be the most useful, your employees should be able to access the program you’ve chosen from anywhere and at any time. Whether they are on a lunch break at their desk or in an armchair in their living room, employees should be able to access all the functionality of the program. 

You should look for a program that allows for:

• 24/7 access
• Multi-platform access – computer, smartphone, tablet

Success

Without a doubt, the program you choose for your employees needs to help them learn the best money habits so they can be successful. This includes such things as saving money, paying off credit cards, and adding consistently to their retirement fund.

Following through on these habits helps your employees find the financial wellness they seek.

The right program will help you measure these habits. For example, Enrich offers employers detailed metrics that show how their employees have been doing since starting the program.

One major Enrich user found the following after just one year of use:

• 32% more employees increased their savings for specific goals
• Those with at least 3 months of emergency savings increased by 27%
• 28% more employees now pay off their credit cards each month

Works for All Employees

A financial wellness program should be effective for all employees, regardless of their age or income. Whether the employee is single and dealing with student loan debt or middle-management dealing with investment issues, your program should help them with their specific financial needs.

This means that the program must be personalized and available when the employee sees a need.

A recent PwC survey⁴ found that employees only look for financial help when:

• Important financial decision (35%)
• Financial crisis (26%)
• Life event (10%)

The same survey found that employees found holistic programs helpful, stating that they’ve used their financial wellness program to prepare for retirement, get their spending under control, pay off debt, save money, invest, and more.

The program you choose should be able to provide data to help you determine if your employees are finding the help they need when they need it.

Impacts Your Company

Not only does financial wellness impact your employees, but it impacts your company as well.

Studies show that when employees are less financially stressed, everyone wins. Companies experience less turnover, less absenteeism, and less presenteeism.

One recent study⁵ found that employee financial stress cost US companies $4.7 billion per week in lost productivity.

You are also likely to see changes in contributions to your company’s 401(k) plan. Enrich found that after one year of use, one company had:

• 15% more employees contribute to the employer-sponsored retirement plan
• Maximum retirement plan contributions increase by 10%

As an employer, you can impact the lives of your employees by offering them a results-driven financial wellness program, such as Enrich. Show your employees that you care about their financial health by contacting Enrich today.

1 - https://www.pymnts.com/study/paycheck-to-paycheck-consumer-finances-american-households/

2 - https://www.bankrate.com/banking/savings/financial-security-january-2022/

3 - https://www.bankrate.com/retirement/retirement-savings-survey-november-2021/ 

4 - https://www.theexperience.work/wp-content/uploads/2018/06/pwc-2019-employee-wellness-survey.pdf 

5 - https://www.brightplan.com/2021-wellness-barometer-survey