The most important aspect to any employee wellness benefits program is behavioral change. Do your employees actually improve their behaviors as a result of the program? It can be difficult to measure whether employees made financial improvements such as reducing debt, increasing retirement savings, and establishing an emergency fund.
You can survey employees and ask them to self-assess these areas before and after they participate in a financial education program, but can you tie bottom line metrics to those behaviors to see how it is benefiting your business?
According to the Personal Finance Employee Education Foundation (PFEEF), you can. Here are a few examples how you can calculate your ROI of a financial wellness program.
Factors to Calculate the ROI of Financial Education Services for Employees
- Turnover and retraining costs. Employers who offer financial education services to their employees have more loyal employees. This means lower annual turnover, saving you the expense of hiring and retraining.
- Health care costs. Stress is the number one cause of most health issues, and money is the number one cause of stress. In one 2-year study of a company that implemented a financial wellness program, the cost of healthcare spent on employees that participated dropped by 4.5%, while costs for employees that did not increased by 19.4%.
- Absenteeism. How much does unscheduled time off cost your business? PFEEF reports that in the United States, the rate of unscheduled absenteeism is 2.3%, costing employers thousands of dollars in direct payroll costs alone. To calculate the cost of absenteeism, multiply the number of hours by the number or employees by the median hourly salary of one employee.
To calculate what the ROI of a financial wellness program could be for your business, check out the PFEEF online calculator. If you want to implement a no cost and flexible program that can be customized to your business culture, download the Moneywise Employee Guide to learn more about the financial education services we offer to employers.