December 2022

Measuring the impact of financial wellness programs

More companies are adding financial wellness programs or investing in enhancing and expanding existing programs, according to the 2022 EBRI Financial Wellbeing Employer Survey. In fact, 79% of employers who took part in the study report that their financial wellness initiatives include a broader range of benefits this year than in the past.

What’s fueling this trend? The Employee Benefit Research Institute (EBRI) survey findings show that employers’ goals to increase employee satisfaction and retention are among the top drivers. Bank of America’s 2022 Workplace Benefits Report tells a similar story, with 84% of employers saying that offering financial wellness tools can help with employee retention, and 91% of employers reporting higher employee satisfaction when they offer resources to manage overall well‑being.

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Measuring success and return on investment (ROI)

With increased focus and resources directed to financial wellness, employers are seeking to measure the success of these programs against their goals as well as the impact on their bottom line. If, for example, financial wellness programs are implemented to help encourage employees to plan and save for the future, tracking retirement plan contribution rates and account balances can provide one measure of the program’s success. Employers can also look at statistics related to participation in health savings accounts.

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But calculating a true ROI is tricky given so many variables. Companies are developing formulas that help them compare the cost of financial wellness programs with potential benefits, such as income generated from higher productivity as well as savings achieved from reduced absenteeism, lower employee turnover and fewer medical and mental health claims.