Financial wellness programs are increasingly recognized as vital components of an employer’s comprehensive benefits package. More than half of the employers who have initiated such programs have witnessed higher than anticipated utilization rates. This aligns with the findings of a 2023 Workplace Wellness Survey conducted by EBRI/Greenwald Research, revealing that over half of American workers’ concerns about their household’s financial well-being serve as distractions at work. Furthermore, the study indicates that over 90% of employees with access to financial wellness programs find them valuable.
An effective financial wellness program encompasses financial education, coaching, tools, resources, and incentives that aid employees in managing money, reducing debt, saving for retirement, and achieving financial goals. Such programs contribute to enhancing employees’ financial literacy, confidence, and security while alleviating financial stress and anxiety.
Employers can also benefit by offering an effective financial wellness program in the following ways:
- Increased Productivity and Engagement: Financially stressed employees may be distracted or unmotivated at work. Financial wellness programs alleviate these concerns, enabling employees to focus on tasks, resulting in improved performance and satisfaction.
- Reduced Turnover and Retention Costs: Employees who feel financially secure and supported by their employer are more likely to remain loyal. Financial wellness programs foster a sense of value and care, often reducing employee turnover.
- Enhanced Reputation and Social Responsibility: Companies offering financial wellness programs demonstrate commitment to employee well-being and community. These programs contribute to improved financial security for employees, positively impacting their families and society.
Effective financial wellness program general includes the following elements:
- Assessing Employee Needs: Understand current financial situations and needs through surveys, interviews, or focus groups.
- Setting Clear Objectives: Establish measurable goals based on assessment results.
- Choosing Delivery Methods: Determine appropriate delivery methods such as online, in-person, group, or individual sessions.
- Selecting Qualified Providers: Choose credible partners like financial experts, coaches, or vendors.
- Effective Communication: Promote the program through various channels such as email, intranet, newsletters, or posters.
- Evaluation and Monitoring: Assess program outcomes and impacts through feedback, surveys, or metrics.
Financial wellness programs offer mutual benefits for both employees and employers. Having a trusted financial professional as part of the program is crucial for ongoing success. The Retirement Services department at Heartland Trust Company collaborates with business clients to educate employees on a variety of retirement planning topics through group and individual sessions. If your business is considering implementing a financial wellness program, or already has one in place, please contact us to find out how Heartland Trust Company can be a valued resource.
