Unlocking the Value of a Financial Wellness Program
Apr 25, 2019
This month we’re joining organizations across the country to celebrate Financial Literacy Month. Established in 2003, Financial Literacy Month is recognized in the U.S. in an effort to highlight the importance of financial literacy, including teaching Americans how to establish and maintain healthy financial habits.
Study after study has shown that Americans not only fret over money issues, but they also have shown that consumers’ lives are impacted in material ways. These issues are top stories in the media because the statistics are alarming. For example, studies show that 40% of Americans don’t have enough cash saved to cover a $400 emergency expense. Other studies highlight that employees spend more than 3 hours a week at work dealing with personal financial issues, which is a real cost to employers.
The good news is more and more employers are seeking out and offering financial wellness programs to their employees. Generally speaking, financial wellness providers claim to help employees manage their money more effectively, pay down debts, save for retirement, etc. and in turn, increase employee productivity, morale, engagement and loyalty. But you have to wonder, is it really that easy?
The short answer is yes, but that answer is quite misleading. It is one thing to implement a financial program, it is another to implement one that has value. If all you’re doing as an employer is implementing the program then stepping back to let it run its course, you’re setting up the program to fail. Designing, implementing, and sustaining a financial wellness program that can truly produce meaningful outcomes such as increases in employee morale, engagement, productivity and loyalty, requires a much more thoughtful and strategic approach.
As an employer, a financial wellness program can be of great value to your company because it is of great value to your employees. However, not all financial wellness programs are equal. It is your responsibility to unlock the potential of your financial wellness program. To start, it is imperative to promote the availability of the initiative to your employees, communicate the value of participation, and helping the employee make the connection to how it will benefit them individually. Bottom line, financial wellness needs to become part of your corporate culture as much as it needs to be a strategic initiative championed from the C-Suite.
To learn more about how to make financial wellness a part of your corporate culture, schedule a demo of LifeCents today. Contact us at firstname.lastname@example.org.