Poor financial wellness is costing employers. 48% of US employees have financial worries, which creates a cost of 11-14% of the annual payroll in lost productivity and increased employee turnover.
In The Employer’s Guide to Financial Wellness we suggest steps an employer can take to build a robust business case and financial wellness strategy. These are the points to keep in mind when building a business case for optimizing your financial wellness strategy:
- Understand the current cost to your business. Use the data from our research to calculate the dollar impact of financial wellness on the business (11 – 14% times payroll cost)
- Retention impact. Consider the impact that financial wellness programs can have on retention, taking into account that individuals who have financial worries are 2.2 times more likely to be looking for a job.
- Lost productivity. Demonstrate that productivity can be improved by using the statistic that those with financial worries are 5.8 times more unlikely to finish their daily tasks on time.
- Mental Health impact. Consider that poor financial wellness has a significant impact on mental health: 4.0 times more likely to feel depressed, 3.4 times more likely to say that they have panic attacks
- Assess required budget. Remember that some benefits to improve financial wellness, such as salary linked loans and savings products, have minimal or no cost to the business.
- Set a benchmark. Determine the distribution of Financial Fitness Scores of your employees and calculate your company’s overall Financial Fitness Score. Find out more about the Financial Fitness Score in our research.
- Tailor your strategy to your business. Select the financial wellness benefits that are best-suited to your employee base and that are likely to have the greatest impact on improving an individual’s Financial Fitness Score (more details on this in our report).
- Measure & optimize. Implement the benefits and re-check the overall Financial Fitness Score annually or every six months to measure the impact of the financial wellness strategy and calculate the ROI.
Download our free Employer’s Guide to Financial Wellness, based on a survey of 10,481 US employees across 26 industry sectors, to find out more about the link between financial wellness, mental health and work performance, and how to choose financial wellness benefits that will maximize ROI for the business.