Do financial wellness programs work? (2024)

Do financial wellness programs work?

For employees

Do wellness programs really work?

Too bad most won't actually boost their well-being, a new study of over 46,000 British workers finds. Only one of the 90 different workplace wellness offerings appeared to boost well-being: Getting employees involved in charity work or volunteering, the researchers found.

Do wellness programs save money?

Are wellness programs cost effective? Yes, it's been shown with various research, case studies, and documented results, not only within WellSteps' programs, but also by many wellness program providers everywhere.

How much does a financial wellness program cost?

Cost of a Comprehensive Financial Wellness Program

The cost of adding a comprehensive financial wellness plan varies, depending on the scope of the program. A recent survey shows that 43 percent of employers spend less than $50 per employee per year; however, 21 percent spend more than $50013.

Do employees want financial wellness programs?

Unfortunately, even though 77% of workers view financial wellness programs as an important benefit, only 28% of employers offer them, according to a 2023 Transamerica Institute report.

What is a drawback to wellness programs?

Wellness Programs Can Be Expensive

While large companies have no problem absorbing the costs of wellness programs, it can be difficult for small and mid-sized organizations with under 1,000 employees.

Why employees don t participate in wellness programs?

When employees who chose not to participate in a wellness program were asked why, the top reasons they gave were that they: Can make changes on their own (70 percent). Lack time (56 percent). Believe they are already healthy (53 percent).

What does financial wellness programs cover?

These programs are aimed at educating employees to help them manage their money and reduce financial burdens. Financial wellness programs may include features such as personal financial coaching on specific topics, online education, budgeting tools, and credit resources.

Are wellness programs expensive?

Surveys found here, here, and here report that the total cost of wellness program is between $150 and $1200 per employee per year. Obviously, this is a huge range. The reason for the large range has to do with which wellness program options an employer wants to include.

What's the hard return on employee wellness programs?

But the data demonstrate otherwise, according to Berry, of Texas A&M University; Mirabito, of Baylor University; and Baun, of the University of Texas MD Anderson Cancer Center. Their research shows that the ROI on comprehensive, well-run employee wellness programs is impressive, sometimes as high as six to one.

Does financial wellness mean having no debt?

This entails a person's ability to: Control their finances on a day-to-day or month-to-month basis. This means that all their bills are being paid on time, their needs are met, and any debt is manageable. Create a financial “cushion” to tackle unexpected emergencies or expenses.

What is the difference between financial well-being and financial wellness?

Financial Wellness is what you practice to achieve Financial Well-Being. Knowing this distinction allows you to set actionable goals and measure your progress effectively.

How does financial wellness affect you?

The relationship between financial stress and mental health

Financial issues can also lead to physical health symptoms, such as migraines, a weakened immune system, high blood pressure, digestive issues, muscle tension, heart arrhythmia, and sleep problems.

What are some examples of financial wellness?

How much do wellness programs save employers?

As more companies try the programs, they are noticing a quick return on investment from those initial costs. A survey from United Healthcare asked employers what their ROI was for wellness programs. The lowest found a $1 return for every dollar spent, while other reported $4 for every dollar put into the program.

What does financial wellness look like?

Financial wellness is a state of financial well-being in which you can comfortably manage your bills and expenses, pay your debts, weather unexpected financial emergencies and plan for long-term financial goals such as building college funds and saving for retirement.

What are the pros and cons of workplace wellness programs?

How do employees feel about wellness programs?

70% believe employers should offer a mental and emotional health program. 54% feel caregiving support should be an employee benefit. 40% say it's an employer's role to help foster social connections.

What are the benefits and drawbacks to implementing an employee wellness program?

Why wellness programs are important in the workplace: they can improve employee productivity, lower health care costs, and attract and retain employees. However, wellness programs can also be costly and time-consuming to implement.

Do workplace wellness programs save employers money?

In a study done on the ROI of employee wellness programs, Harvard researchers conclude that, on average, for every dollar spent on employee wellness, medical costs fall $3.27 and absenteeism drops $2.73. This is a 6-to-1 return on investment.

What percentage of employees participate in wellness programs?

The success of your wellness program starts with employees actually using and engaging in the program. A Gallup survey revealed that although 87% of employees have access to mental and emotional well-being offerings, only 23% of employees use them. (This also applies to financial and physical well-being offerings.)

What makes an employee wellness program successful?

Creating a successful workplace wellness program involves a combination of committed leadership, continuous communication, coaching support, a well-designed incentive structure, and a platform that allows everyone in the company to visualize individual and program progress.

What are the five pillars of financial wellness?

Financial confidence comes from understanding how budgeting, saving, investing, risk and debt management work. These pillars develop good money habits and build a strong foundation for a stable future.

How important is financial wellness?

Managing your money can be stressful. That stress can find its way into other aspects of your life, including your job, family, and relationships. One of the primary reasons why financial wellness is important is that it can lower stress levels.

How do you use financial wellness?

Taking fundamental steps toward financial fitness can help reduce stress. Budgeting to save and pay off debt and putting money toward retirement can help stabilize your finances. Building an emergency fund and boosting your income can help you reach your goals.