Money & Stress: The Unique ROI Of Employee Financial Wellness

According to the 2023 Workplace Benefits Report by Bank of America, 96% of employers feel some level of responsibility for the financial well-being of their employees.    The main obstacle preventing more companies from offering these benefits is misunderstanding their return on investment (ROI).

Many employers believe that financial stress is a niche issue, only relevant to a handful of team members. However, in doing so, they overlook the widespread impact that financial stress can have on their employees and underestimate the power of basic financial wellness. Money issues impact workers of all ages, backgrounds, and income levels and can affect everything from productivity to your team’s physical health. As such, the true ROI of a financial wellness program will likely be measured by how it improves the quality of life for your entire workforce.

Measuring the ROI of Financial Wellness: The 3 Key Outcomes to Look For

1. Financial wellness improves employee productivity.
   Financial stress is a major concern for most Americans, regardless of their age or economic background. This level of stress has been shown to affect productivity in the workplace.  When interviewed for PwC’s 2023 employee Financial Wellness Survey, 1 in 3 employees admitted feeling distracted or disengaged due to financial situations. The same survey also found that 56% of financially stressed employees spent at least three hours per week at work focused on their financial issues.Offering a financial wellness program can help companies decrease distractions related to financial stress and dial down their money worry. A less distracted and financially stressed workforce, benefits from increased efficiency and productivity in turn.
2. Financial wellness improves mental health.
   ROI can be hard to measure, but the impact financial wellness has on employee quality of life is not. Researchers at the Society for Human Resources (SHRM) have found that the returns on investing in financial wellness programs — including improved employee health, lower absenteeism, and reduced turnover — are all related to employee mental health.According to Calm’s Voice of the Workplace Report, surveyed employees reported being most concerned with the current cost of living and levels of inflation. Financial instability ranks close behind as the second top stressor.Around 59% percent of employees experienced feelings of anxiousness and worry regarding their financial futures while 71% of employees reported that financial stress affected their professional and personal lives. In the same Calm survey, respondents reported increased feelings of anxiety (59%), frustration with financial pressure (33%) and sleep disturbances or insomnia (24%).The good news is that employers are catching on. Around 66% of companies agree that financial stress affects their team. A quality financial wellness program can give employees tools to meet financial stress head-on.

   Financial wellness benefits help retain and attract top talent.
   Today’s job market is historically competitive about finding and retaining top talent. Because HR leaders and C-suite executives see building a robust workforce as a priority, a comprehensive benefits strategy is becoming necessary. To remain a competitive employer of choice, many companies are increasingly investing in financial wellness programs, because compensation alone isn’t enough to stand out.

   Employees at all income levels face financial stress, which causes them to seek employers who value and support their financial well-being. According to PwC’s Employee Financial Wellness survey, financially stressed employees are more likely to look for a new job and be attracted to an employer they feel cares more about their financial wellness. 

   Access to financial wellness benefits can be a major contributing factor when choosing an employer. Support for financial wellness is becoming less optional and more of an expected standard offering in the workplace.

Get the most out of your financial wellness program with help from U.S. Legal Services and Best Money Moves.

U.S. Legal Services’ Family Defender™ plan offers your employees critical support for all of their legal needs. Plan members can connect with qualified attorneys for a variety of legal issues including insurance claims, real estate issues, landlord and tenant issues, identity theft protection, financial wellness and much more.

U.S. Legal Services has also partnered with Best Money Moves, an award-winning financial wellness platform. Best Money Moves works with our legal plans to help employees make smarter decisions about their money. This confidential platform provides unbiased for life’s financial milestones. With customized financial recommendations and a library of 1000+ educational articles, videos and webinars, Best Money Moves can help your team navigate whatever unique financial challenges they may face.

To learn more about how group legal insurance benefits can help your team, contact us online or call 1.800.356.LAWS for a quote.