Is a financial wellness benefit really worth it?
1 like530 views
The document discusses the importance of workplace financial wellness, highlighting its impact on employee health, job performance, and overall costs to organizations. It presents data linking financial stress to absenteeism, healthcare costs, and employee engagement. Key steps for implementation include articulating the program's purpose, tracking relevant metrics, and utilizing third-party vendors for privacy and effectiveness.
Is a financial wellness benefit really worth it?
- 1. IS FINANCIAL WELLNESS REALLY WORTH IT? November 2015
- 2. Chris Whitlow Guest Speaker Gerry Hollis Host Workplace Financial Wellness
- 3. What to Expect Calculating financial stress costs Choosing benefits that employees love ROI vs. VOI, how to justify your initiative How we arrived on this topic Workplace Financial Wellness
- 4. HOW WE GOT HERE
- 5. Google Trends “Financial Wellness” Trend “Workplace Wellness” Trend Workplace Financial Wellness
- 6. | 1 Data from American Psychological Association | 2 Data from National Council on Compensation Insurance| 3 Data from Federal Reserve | 4 Data from Society for Human Resource Management | 5 Data from PwC’s Employee Financial Wellness Survey Workplace Financial Wellness Health Wellness 2.0 32% Employees who say financial stress prevents a healthy lifestyle. 12% Employees who say financial concerns prevented a doctor visit. 90% Primary care visits from stress related issues. $5K Annual cost of a financially stressed employee. Employees who stress at least three hours per week over personal finances. 39%83% Employees who say financial stress impacts job performance. 1 1 2 3 4 5
- 7. Financial Wellness… It’s not a number, it’s a lifestyle. Workplace Financial Wellness
- 8. CALCULATING THE COST OF FINANCIAL STRESS
- 9. Workplace Financial Wellness The Formula Cost of Turnover + Cost of Absenteeism + Cost of Lost Productivity (Engagement, Fatigue, Alertness, Commitment) + Cost Benefits Leakage (401(k) Loans, Payroll Advancements, Non-Participation) + Cost of Health Care Expense.
- 10. Workplace Financial Wellness Napkin Math 1) Survey your Workforce 2) Where does the stress come from (Debt, Savings, Spending) What’s the magnitude? 3) Consider using Debt ~ 100%, Savings ~ 75%, Spending ~ 50%. 4) Stressed Employees X type of stress X $5,000 per year. 5) *Financial stress comes from everyday financial events.* Employee Financial Stress
- 12. Workplace Financial Wellness Different Kinds of Employees Do it for me. Help me do it. I’ll do it.
- 13. Workplace Financial Wellness What Employees Say… | Data From Harris Interactive & The Jellyvision Lab “Please give me Financial Wellness.” 70% “Non-intimidating.” 56% “Online, please.” 49% “Keep it Pirate, um private!” 60% “Use third-party vendors.” 61%
- 14. ROI VS. VOI
- 15. Workplace Financial Wellness ROI, wait for it…
- 16. Workplace Financial Wellness Valuing Your Employees Health Moral Energy
- 17. Workplace Financial Wellness What To Track • Financial wellness engagement • Health care costs • Retirement benefit loans • Days absent • Wellness program satisfaction • Health risk from stress • Job satisfaction • Safety Quantitative (Easier)Qualitative (Hard) • Employee moral • Employee engagement • Corporate culture • Work quality • Camaraderie • Employee effectiveness
- 18. Next Steps (1) Clearly articulate why you are offering financial wellness to your employees. (2) Identify which metrics you need to support your wellness goals. (3) Consider expanding your VOI narrative. (4) Understand how and where to get your metrics (consider using a third party) (5) Periodically review: • Wellness engagement and retention analytics • Health care analytics • In-house data Workplace Financial Wellness
- 19. QUESTIONS?
- 20. Chris Whitlow [email protected] Gerry Hollis [email protected] Workplace Financial Wellness THANK YOU!