Considering a Financial Wellness Program? 3 Questions You Need to Ask

Studies in recent years have shown that many employees are suffering under the weight of financial stress - and things have only gotten worse with the COVID-19 pandemic. Don’t think this only affects employees - there’s a cost to business, as well. Employees who spend time at work worrying about finances can be less productive and take more sick days, both of which can affect the bottom line. Employees who end up delaying their retirement can also impact an employer financially.

As a result, financial wellness programs have become increasingly popular, with many businesses eager to ease the financial stress of their employees.

But...is it right for YOUR business?

There’s also the fact that there are a variety of programs on the market to choose from, each differing in the topics they cover, how they are delivered, and the tools and technology used. If you do decide to offer a financial wellness program, how do you choose which one is the right fit for your business?

By asking yourself the right questions, you’ll be able to decide whether offering a financial wellness program is the right move for your business, as well as which one to choose. Here’s what you need to consider:

What problem(s) - if any - are you trying to solve?

Do you even need a financial wellness program? If your employees seem to be doing fine financially, maybe your company’s time, energy, and money can be better spent elsewhere. On the other hand, if you’ve noticed patterns of behavior like frequent loans from 401(k)s, living paycheck to paycheck, garnishments of wages, etc, that lead you to suspect that they have some underlying financial problems, establishing a financial wellness program may be a smart move.

Be realistic about what can be influenced and solved by this type of program. In addition to collecting data from other benefits, communication is key: listen to your employees to see what they need and want. Do they need budgeting advice? Resources on financing child care and elder care? Investment counseling? This where tools such as surveys can come in handy!

What are the desired outcomes?

You also need realistic expectations. Education does not equal action, but by knowing what problem you want to solve, you automatically have to consider how you’ll know whether you’re making progress on solving it.

Surprise - most employers who offer financial wellness programs are not measuring outcomes. (This seems like an irresponsible way to spend benefits money, IMHO.) Ideally, you want to track not only the program intake and completion rates, but other positive outcomes as well, such as the reduction in 401(k) loans or wage garnishments. The metrics that the plan sponsor receives will vary by provider, ranging from enrollment to engagement to self reporting or counseling trends.

Historically speaking, intake and completion rates for financial well programs are pretty abysmal, but that shouldn’t prevent you from tracking them (or other measures of success). With the right marketing of the program on the front end and operational strategy, you can boost your intake rate and make sure those who sign up are finishing the program and benefiting from it financially.

Which leads us to the final question...

What are you willing to do to start and support the program?

Running a financial wellness program takes money, time and energy, both when it comes to onboarding employees and sustaining it over time. Marketing the program is vital to getting employees to be aware of it and to sign up. You can tie the marketing in with your company’s values and culture - e.g. “We care about our employees and how they’re doing financially.” You also need to be cheerleading the program as much as possible and make sure management does their part to support and promote the program.

Offering incentives is another way to maximize enrollment. Points for joining and completing the program that can be redeemed for rewards are a great way to get employees to not only sign up, but also actually follow through on a financial wellness program.

And remember, you can’t just set-it-and-forget-it -- it takes a certain amount of operational effort to keep it running smoothly. What if an employee leaves the company? How do you share employee data with the program provider? These and other issues need to be carefully considered alongside the outcomes that you want in order to determine whether HR really has the time, money and manpower to offer such a program.

As you might have guessed, we have a love-hate relationship with these programs! And that’s mainly because we like to drive results. A financial wellness program can be a great benefit to offer your employees, but it’s not for everyone, and it’s not a panacea. Start by asking yourself the above questions in order to make the best decision - whether it’s yay or nay - for both employer and employees. Still wondering or need more information on all the programs out there? We’ll help you put it together. Book a call!