How to Design and Implement Behavior Changing Financial Wellness Programs
Why Financial Wellness Matters to Employers
Financial wellbeing is becoming an increasingly important component to employee wellness. According to the American Psychological Association’s annual Stress in America™: Paying with Our Health survey, financial issues are the number one cause of stress and play a large role in most preventable stress related illnesses.
The Benefits of an Effective Financial Wellness Program
Employers are realizing that by reducing employees’ financial stress levels and improving their overall financial wellness, they can in turn reduce costs in a number of areas that significantly impact their bottom line. According to leading research, employers can achieve an average ROI of 3:1 from their employee financial wellness programs.
Studies have shown that coupling a financial wellness program with one of physical wellness has a multiplier effect on results by increasing employee engagement, performance, productivity and morale while reducing turnover, healthcare costs, and delayed retirement costs.
Beginning Your Financial Wellness Program and Setting Your Goals
There are many reasons for companies to start a financial wellness program. They can include solving short-term issues or can be more long-term in nature to create a culture where employee wellness is an important component of the company’s identity. Below is a list of some of the potential goals for starting a Financial Wellness Program:
- Containing health care costs
- Reducing risk of delayed retirement
- Reducing wage garnishments
- Increasing loyalty to employer
- Increasing employee benefits awareness and participation
The Importance of Choosing the Right Financial Wellness Partner
Many companies have attempted to add a financial wellness component to their existing physical wellness benefit that is included in their employee benefits package. However, Financial Wellness has different expertise and focus requirements. It is also not always easy to understand who is available to take on the various roles that will be needed within the program. Who will handle the initial employee engagement? What type of employee interactions will be included within the program? What are the results that can initially be expected as well as the results that can be expected over time?
These are just some of the questions that will have to be answered in the planning stages of a financial wellness program. It has been shown that partnering with a firm that specializes in Financial Wellness programs is a key element to creating a successful Financial Wellness program.
Ask your 401(k) Advisors – Arizona advisor today about how we can help you and your employees achieve Financial Wellness goals.