Financial concerns weigh heavily on employees’ minds both at home and at work, according to a new survey by Ernst & Young. As such, many organizations recognize the need to help their employees by providing a financial wellness program.
The majority (86 per cent) of human resources professionals surveyed said their organization offers such a program. These offerings range from apps and free materials from pension administrators to more comprehensive programs that include financial counsellors.
However, the return on investment for financial wellness programs is difficult to quantify, according to the report. It notes this can make organizations hesitant about offering them because they’d prefer to have specific metrics to validate the resources spent on a program. Among survey respondents that don’t provide a financial wellness program, just 16 per cent felt they could justify the expense without a clear return on investment.
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One way to determine the value of a financial wellness program is employee engagement, so strategic communication that raises awareness is the first step, notes the report. In addition, the program shouldn’t address only major financial issues, such as student debt and retirement. Rather, the report suggests a good program should be more fulsome and help employees generate a solid foundation of knowledge to help them along each and every stage of life. Further to this, organizations must understand the demographics of their workforce in order to engage them effectively, according to the report, which notes age, career and income range all matter.
The report sets out certain key questions to ask when helping employees assess their financial wellness. These include:
- What are their money habits?
- How do they feel about their current financial situation?
- What financial concerns might be affecting their personal relationships?
- And how much time do employees spend fretting over money concerns?
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