PLANADVISER - Fall 2023 - 32
Financial Wellness
Demand Performance
With increasing costs, financial wellness programs should prove their worth
FINANCIAL wellness programs continue to gain acceptance
with employers. The 2023 PLANSPONSOR Defined
Contribution Plan Benchmarking report notes that 77% of
plan sponsors currently offer a form of financial wellness
programing.
One reason for the programs' acceptance has been
their relatively low cost per participant. Craig Copeland,
director of wealth benefits at the Employee Benefits
Research Institute in Washington, says the 2022 EBRI
Financial Wellbeing Employer Survey found that roughly
60% of employers were spending between $20 and $250 per
employee annually. Seventeen percent were spending less
than $20 per year, 14% spending more than $250, and 8%
were not sure of their costs.
But the expense has been increasing: 53% of 2022's
responding companies noted their costs being more than
$50 per employee, compared with one-third citing this
level in 2018 and 2019, according to EBRI.
With the rising costs, 85% of 2022 survey respondents
had implemented cost-benefit analyses to evaluate their
financial wellness program.
Employee
satisfaction (55%) was
employers considered. Productivity tied employee attraction
and retention for second, at 42%, " showing that
employers were also looking at the benefits of these
the main factor
programs relative to their costs outside of just employee
happiness metrics, " the report states.
Building the Case
Numerous studies describe the financial challenges and
stresses many employees experience. Financial wellness
programs purport to address these problems, but their
citing generic outcomes such as " increased employee
happiness " or " increased productivity " without supplying
specific evidence of success might not convince an
employer to implement a financial wellness program.
Demonstrating a benefit's value requires measuring
outcomes based on information from the employer or
employee, says Rob LaBreche, president of iGrad, in Cardiff
by the Sea, California; iGrad offers the Enrich financial
wellness program.
" Not every organization we work with allows us to
measure all typical benchmarks, but we do try to measure
everything we can, " he says. For example, employees
who completed the Enrich program's 401(k) and retirement
learning program increased 401(k) contributions
by an average 34%. That change also reduced employers'
payroll taxes on the employees' wages, he says. Other
metrics based on Enrich users' results found an increase
in employees' emergency savings and more employees
32 planadviser.com | Fall 2023 | Practice Management Art by Antonio Uve
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PLANADVISER - Fall 2023
Table of Contents for the Digital Edition of PLANADVISER - Fall 2023
At the Core
A Need to Show Value
The Talent Pipeline
Inside the Deal
Demand Performance
Are They Legally Binding?
The SEC on Cybersecurity
From Managing to Leading
Can You Predict Client Stress?
PLANADVISER - Fall 2023 - C1
PLANADVISER - Fall 2023 - FC1
PLANADVISER - Fall 2023 - FC2
PLANADVISER - Fall 2023 - C2
PLANADVISER - Fall 2023 - 1
PLANADVISER - Fall 2023 - 2
PLANADVISER - Fall 2023 - 3
PLANADVISER - Fall 2023 - 4
PLANADVISER - Fall 2023 - 5
PLANADVISER - Fall 2023 - 6
PLANADVISER - Fall 2023 - 7
PLANADVISER - Fall 2023 - 8
PLANADVISER - Fall 2023 - 9
PLANADVISER - Fall 2023 - 10
PLANADVISER - Fall 2023 - 11
PLANADVISER - Fall 2023 - 12
PLANADVISER - Fall 2023 - 13
PLANADVISER - Fall 2023 - 14
PLANADVISER - Fall 2023 - 15
PLANADVISER - Fall 2023 - At the Core
PLANADVISER - Fall 2023 - 17
PLANADVISER - Fall 2023 - 18
PLANADVISER - Fall 2023 - 19
PLANADVISER - Fall 2023 - A Need to Show Value
PLANADVISER - Fall 2023 - 21
PLANADVISER - Fall 2023 - 22
PLANADVISER - Fall 2023 - 23
PLANADVISER - Fall 2023 - 24
PLANADVISER - Fall 2023 - 25
PLANADVISER - Fall 2023 - The Talent Pipeline
PLANADVISER - Fall 2023 - 27
PLANADVISER - Fall 2023 - 28
PLANADVISER - Fall 2023 - 29
PLANADVISER - Fall 2023 - Inside the Deal
PLANADVISER - Fall 2023 - 31
PLANADVISER - Fall 2023 - Demand Performance
PLANADVISER - Fall 2023 - 33
PLANADVISER - Fall 2023 - Are They Legally Binding?
PLANADVISER - Fall 2023 - 35
PLANADVISER - Fall 2023 - The SEC on Cybersecurity
PLANADVISER - Fall 2023 - 37
PLANADVISER - Fall 2023 - From Managing to Leading
PLANADVISER - Fall 2023 - Can You Predict Client Stress?
PLANADVISER - Fall 2023 - 40
PLANADVISER - Fall 2023 - C3
PLANADVISER - Fall 2023 - C4
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