Financial wellness programmes are gaining popularity these days as a key responsibility for employers and a necessity for employees. However, merely implementing a financial wellness program is hardly adequate in today’s times. It is also essential that the efficiency of such a program is routinely measured, with a review of several Key Performance Indicators from time to time. Else, it perhaps risks being relegated to the status of an enthusiastic fire drill we’ve all been part of at some point in our lives.
Without measuring the program’s outcomes, it is not possible to know if it helps in changing people’s attitudes and behaviours concerning money, in a way that produces lasting effects. Surely, if the program does not create lasting changes for employees, it isn’t just a waste of time and effort, but it’s eating into every other business metric – from the bottom line to even the intangibles such as brand reputation.
Let’s take a look at some of the basic key performance indicators or KPIs for financial wellness programmes:
Participation rates can be a wonderful KPI to judge the effectiveness of successful Financial Wellness programmes. Your enterprise can take into account the following numbers to judge your programme’s effectiveness.
1)The Number of Employees Participating
A good way to judge the effectiveness of a company’s financial wellness program is by keeping track of the number of people making use of the different services or participating in activities such as seminars, financial counselling, etc.
2)Growth in the number of Users
This metric records the increase in the number of employees making use of the services on offer by your enterprise’s financial wellness programmes. This number could mean at least one of two things.
a.The program has provided successful results to your employees. Only if the program is beneficial, your employees would recommend it to other colleagues
b.Your enterprise is successful in communicating to the employees the benefits of the financial wellness program.
3)Rate of Return
This records the number of times employees came back to avail the services. This is also a good metric to judge a program’s effectiveness, but it depends on the program on effect.
For instance, a high rate of return to debt management seminars could mean that the seminar might not be adequate. On the other hand, return to a financial wellness partner for wealth generation points towards a positive impact.
4)The number of Courses, Seminars and Assessment Completed
This determines the employees’ commitment level and interest in the program and an indicator of whether the employees find it useful.
This compares the pre-program-implementation scores of employees’ financial awareness tests to the post-program-implementation score, to ascertain the level of educational seminars and workshops, etc have helped the employees.
The best way to ascertain the utility of any program or effort is to get feedback from the beneficiaries, in this case, the employees.
This score reflects the level of satisfaction the employees received from the implementation of the Financial wellness programmes. They measure the workforce’s response and give an idea to the employer how right or wrong they are going in the view of the employees.
2) Confidence Scores
Through this users can be asked how comfortable they feel in their knowledge about certain topics before and after taking seminars or courses to assess if the programmes are working well and benefitting the employees.
3) Financial Stress Levels
Financial stress can lead to a lot of different problems like anxiety, depression, productivity, etc. A good way to judge financial wellness programmes is by measuring how much they relieve employees of such debilitating stress.
Another good Key Performance Indicator to judge Financial Wellness programmes can be based on how aware they make employees, and how they induce them to make full use of the financial benefits offered by their organisation, like:
1) Retirement funds:
This measures the number of employees who are investing their money in the company(or outside) retirement funds, which shows a level of awareness.
2) Loan Obtaining benefits:
This measures the number of employees who take advantage of the loan-procuring help offered by their organisation.
3) Loan repayment perks:
This keeps track of the number of employees who are aware enough to utilise organisational help, in whichever way offered, for the repayment of loans like education loans.