Companies that have sponsored a financial wellness program since 2015 are seeing an increase in the financial health of employees who consistently take advantage of the program, according to Financial Finesse. They also are seeing a major return on their investment because employees who are in better financial health won’t delay their retirement.
“Repeat users are twice as likely to be on track for retirement,” Financial Finesse found. “Forty-three percent of repeat users are on track for retirement, compared to just 19% of employees who are engaging in the financial wellness benefit for the first time.”
Liz Davidson, founder and CEO of Financial Finesse, says that there has been a shift in employee mindsets over the past decade and they are now “excited to take control of their finances. They went from being a little upset about changes in their pension plans and the structure of their healthcare benefits to understanding this is on me. The employer is giving me opportunities through the benefits we have at my job to make sure I’m financially secure.”
More companies are using financial wellness programs as an ongoing benefit that is available to all employees on an unlimited basis, and it is done in a very personalized way, she says. Technological advancements have made it easier to personalize financial information and that, coupled with workshops and one-on-one consultations, has made it easier for companies to reach a broader spectrum of people.
“The challenge is how do you build a program or benefit that is going to reach your entire workforce? The technology is going to help identify those vulnerabilities and identify those gaps,” says Greg Ward, director of the Financial Finesse Think Tank.
He points out that 85% of people are not going to do what needs to be done on their own. They need personal engagement.