Financial Wellness: Critical Steps for a Successful Program
Financial stress impacts employee health and also impacts the ability to retire. According to PwC’s 2018 Employee Financial Wellness Survey, more than half of employees who identify as being financially stressed indicate they plan to withdraw money from their retirement fund for expenses not related to retirement. With 47 percent of all employers in the survey reporting they are stressed about finances, financial wellness programs make sense.
A recent survey by Prudential found that more than 80 percent of employers offer financial wellness programs to their employees; a number that has increased 20 percent since 2016. Findings from the survey indicate that employers and employees report higher satisfaction with their benefit plans when financial wellness programs are offered. With so many employees turning to their employers to help them achieve financial security, what should you know about financial wellness programs?
According to PwC, employers should include three things in their financial well-being program:
- An eye-opener to show employees what their future will look like if they don’t make any changes to the way they handle their finances
- A process that breaks large tasks into small, easy-to-accomplish tasks
- Access to professionals who help diminish unease when an employee hits a roadblock
When developing a program, use surveys to find out what kinds of financial wellness programs your employees want. It’s also important to analyze 401(k) loans and withdrawals and wage garnishments. To determine the effectiveness of your offering, measure the impact of your financial wellness program at least quarterly. These steps are critical to a program’s success. An employer who understands its employees’ needs, can develop robust programs that target the specific goals and objectives employees find valuable – and programs that are valued will be used.
Wellness Workdays has worked with a number of organizations to help their employees improve their financial well-being. Contact us to learn more about our financial wellness programs.