Financial wellness has become a buzzword in the HR industry. A financial wellness program will help bring stability to your employees’ lives by providing them with resources to help them tackle their financial challenges and reduce financial stress. The cost of financial wellness programs will vary depending on factors like company size, customization options, and account management.
Does my company need a financial wellness program?
Every company should incorporate a financial wellness program, and here are a few reasons why:
- 40% of US employees are living paycheck to paycheck
- The 2022 PwC employee financial wellness survey states money is the main source of stress for most people
- Many employees are concerned about day-to-day expenses, according to PwC.
Offering financial wellness programs for employees will give them access to financial education and help alleviate the stress affecting them daily.
Financial wellness programs average cost
The cost of employee financial wellness programs will vary; not every program is the same. The key is finding a program that matches the needs of your employees. You also need to find a program that addresses your employees’ needs and your bottom line. Since there are many different financial wellness programs, their prices will vary.
Factors affecting the cost of financial wellness in the workplace:
Many factors affect the cost of financial wellness programs.
1. Company size
The cost of a financial wellness program will depend on the size of your company. The bigger a company is, the less the program will cost per employee. The more employees your company has, the less it will cost your company to have a financial wellness program. This is due to economies of scale, which means the cost per unit goes down as the scale increases.
Most companies aren’t doing the most when offering workplace financial wellness. Although you provide retirement benefits and education on those benefits, it doesn’t mean that’s all your employees need. They are most likely looking for more.
Employees need various resources and tools to help them conquer their financial goals. The financial wellness platform you choose for your company should be customizable and focus on both short-term and long-term needs. You’ll also want to find a program that works for your company's needs. For example, a program that allows you to have a custom launch process, custom marketing materials to engage your employees, and different tools and resources to fit the needs of all your employees.
3. Getting account management
Some financial wellness programs offer account management. Either through a computer program, a team of people, or one dedicated person who is there to work with you and your employees. An account manager will help you launch the program to your employees, manage outgoing communication and promotions, help answer questions you and your employees may have about financial wellness and the program, maintain records, provide data reports, and monitor employee satisfaction.
More personalized service will affect the cost of financial wellness programs, though.
4. Adding counselors and Certified Financial Planners
Plans that offer individualized financial counseling will be the most expensive. The ones that offer certified financial guidance will be even more costly. Depending on the program, counseling is in-person, online, or over the phone. Certified financial guides can help with specific courses of action for employees experiencing financial crises, setting goals, creating and implementing savings plans, budgeting, paying off debt, etc. Getting a plan that includes Certified financial planners will benefit your employees more and is more effective.
Why investing in a financial wellness program cost is worth it?
There are many benefits of financial wellness. Your employees are stressed out. Most are struggling to meet day-to-day expenses. Offering a financial wellness program can help your employees improve their financial and overall health. Savings from lower healthcare costs and reduced absenteeism will more than offset the cost of implementing a financial wellness program into your benefits offering. these are all examples of financial wellness benefits for employees.
Financial stress is costing businesses $4.7 billion a week. By implementing a financial wellness program, you will not only help your employees' financial health but also help your company’s bottom line and save money. A financial wellness program will also benefit your employees' mental health by reducing overall stress and providing them with the financial education they might lack.
What you lose by not Investing in financial wellness
Below are examples of things your employees may lose by not implementing a financial wellness program.
Savings on health care costs
Financial stress impacts your employees’ overall mental and physical health, leading to higher healthcare costs. Finances stress your employees out more than all of life’s stressors combined. By implementing a financial wellness program, you can help reduce healthcare costs.
Financial stress impacts your employees at work, whether you want to admit it. Due to this, your employees aren’t as engaged or productive as they should be. Financial wellness programs can increase engagement and productivity rates to increase your business's revenue.
Top talent is hard to find and harder to retain. Financial stress causes employees to look for other job opportunities, and now more than ever, employees are seeking companies that offer financial wellness. By implementing a financial wellness program, you can increase your retention rates and lower turnover rates.
The opportunity to address financial inequality
A financial wellness program can help your company address the economic disparity in the workplace. Financial stress affects employees of color more, and they have more debt. By providing all of your employees with the tools and resources to reach their financial goals, you are helping close the wealth gap.
A financial wellness program aims to improve employees’ well-being and your company’s bottom line. Keeping price factors in mind as you evaluate different programs is essential. Financial wellness companies like Your Money Line, provide one-on-one financial coaching, resources, and tools to help reduce your employees' financial stress and help your company succeed.