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The Value of Financial Wellness Programs
EIGHTY-THREE percent of employers
offer a financial wellness program to
their employees, according to Benefits
and Beyond: Employer Perspectives on
Financial Wellness, Prudential's 10th
survey on employee benefits.
Adoption of the programs is up
dramatically, from 20% in 2016. And 14%
of employers plan to offer a financial wellness
program within the next two years.
" Our survey reveals that employers
and employees report higher satisfaction
with their benefit plans when financial
wellness programs are offered, " says
Vishal Jain, financial wellness officer for
Prudential's workplace solutions group.
" Employees increasingly look to their
employers to help them achieve financial
security, and employers are seeking data
and insights on how to respond and influence
better outcomes. "
Sixty-one percent of employers that
offer a financial wellness program are satisfied
with their benefits program overall,
compared with 44% that do not offer one.
Seventy-two percent of larger employers
are satisfied with their financial wellness
offerings, compared with 54% of midsize
and 50% of small employers.
Criteria for selecting financial wellness
partners are driven by cost, ease of implementation
and expertise. Further, large
employers want involvement in implementation
and ongoing support, while small
and midsize employers also want a good
fit-i.e., program to employees' needs-
as well as a return on their investment
(ROI). The survey also found that 61% of
large employers believe employees hesitate
to share personal information in a financial
wellness program and cite " privacy
concerns " and " putting together all the data
and information " as reasons.
As to where they acquired or plan
to acquire their program, employers said
they prefer retirement plan and benefit
providers, and, when assessing a program,
they first look at cost, then ease of implementation
and expertise. They expect a
financial wellness program to attract and
retain talent, improve productivity and
assure employees that the company cares
about their financial well-being.
Sixty percent of employers think they
should provide financial wellness benefits
to employees; only 15% think employees
should be responsible for their own financial
well-being and future. Additionally,
64% think their employees are highly
satisfied with their benefits program, and
33% think employers should pay for all of
the costs of employee benefits.
To gauge success of their program
and changes in their employees' needs,
employers conduct surveys and analyze
loans and withdrawals, Prudential reports.
Sixty-six percent measure their program's
impact at least quarterly. -Lee Barney
Most Common Financial Wellness Programs
n Currently offer n Plan to offer
67%
18%
Digital portal
through which
to access tools
and content
66%
23%
Tools and
calculators to
help employees
gauge financial
wellness
62%
20%
Retiree planning
(e.g., Social
Security
optimization)
60%
22%
Access to
financial advice
and/or advisers
Top Criteria When Selecting a Financial Wellness Program, by Employer Size
Large Plans
1 Cost
2 Ease of implementation
3 Experience/Expertise
4 Opportunity to be involved
in implementation
5 Ongoing support
Midsize Plans
1 Cost
2 Return on investment
3 Ease of implementation
4 Experience/Expertise
5 Match between offerings
and needs
Small Plans
1 Ease of implementation
2 Cost
3 Match between offerings
and needs
4 Return on investment
5 Experience/Expertise
Source: Prudential, Benefits and Beyond: Employer Perspectives on Financial Wellness survey, 2018
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