21 November 2022
Financial wellness programs, coupled with access to tools and resources, can work as a solid foundation for employees in managing their financial needs. While financial wellness programs can be expensive to launch and maintain, many may argue, and justifiably so, that they more than pay for themselves over the long term. They are therefore, a crucial exercise.
An organization, will of course, have a number of HR goals – such as reducing attrition, improving employee engagement, or reducing absenteeism. Achieving these goals, and many more, can certainly depend on the impact of financial wellness programs. But, regardless of the nature of the goals, it is critical to categorize them at the outset and then initiate with the metrics and methodologies to assess the impact.
Given below are some of the goals categorized for easy assessment of the progress of financial wellness programs :
The effectiveness of financial wellness reflects in multiple statistics – such as turnover rate, rate of retention or attrition. If employees are able to manage their finances well, expect retention to increase, and vice versa. The key here is to provide employees with the appropriate guidance to save as well as spend smartly by keeping all obligatory or urgent expenses in mind. If an organization succeeds on this front, it shouldn’t be surprising to see a more engaged, committed workforce that delivers well, and stays.
Increased participation from employees in investments, financial schemes or just more financial awareness in general, is the most direct, visible impact of financial wellness programs. These can be indicative of employees planning their future. Employees may also look for credit assistance on their path to financial freedom – such as via instant loan apps or salary advances. An organisation would do well to make reliable options available on this front too.
It doesn’t take advanced statistics to guess that a financially stable employee is more likely to be committed and deliver at enhanced levels. But beyond the concept, these results can be measured as well. Parameters such as absenteeism, errors/mistakes, cost of errors/mistakes can all indicate how effective financial wellness programs are at the workplace.
Engagement in health and wellness plans is also a sign of the success in financial wellness program. With work-life balance constantly threatened by the demands of today’s work culture and other commitments, active engagement in health and fitness activities can be indicative of lowered financial stress and superior time management. Therefore, another parameter to measure health awareness among employees can be engagement with wellness programs, webinars and fitness incentives.
Constructive employee feedback is key to the growth, and evolution of financial wellness programs. It delivers critical insights into the expectations employees have, and has the added bonus of earning their confidence in the system. Iincreased usage of employee assistance programs, therefore, is also a favorable outcome.
Crucial as they are to an organization’s development, financial wellness programs also assist employees manage both stress and money, whilst keeping both stakeholders satisfied and productive.