When rolling out new benefits, the question of ROI often comes up. It’s important that new benefits programs truly improve the lives of your employees, but also demonstrate real results on your company’s bottom line.
It’s no secret that financial stress is the #1 cause of stress in the workplace. Many companies introduce financial wellbeing solutions knowing that it might help reduce employee stress levels, but how else can financial wellbeing drive real results?
HR teams love LearnLux because we are a true partner from day one. We both help your employees optimize their financial plan and reduce financial stress and improve participation in other benefits. Our employer partners often see the following impact:
Greater Use of Pre-Tax Accounts
Higher employee contributions to FSAs, HSAs, 401Ks, and other pre-tax accounts help reduce tax payments for both employees and employers. This savings is close to $19 per employee, per month. At scale, a company with 10,000 employees, for example, could save over $2 million in payroll tax each year by helping employees opt into pre-tax benefits.
Helping employees plan and save for retirement can save 1.0%-1.5% of workforce costs annually for every one-year decrease in average retirement age.
Healthcare Cost Savings
Financial stress can increase healthcare costs by about $400 per stressed employee annually. Click here for more information on potential healthcare savings.
Research shows that employees who are stressed by financial concerns are distracted or miss work an average of 15.5 days per year! Think of an employee whose mind is on their mountain of student loans. Or, a worker who receives distracting calls from creditors while on the clock. Even an employee with a big (read: expensive) goal coming up like buying a home or saving for a wedding can find their mind wandering. Offering financial wellbeing with access to expert planners can help your team keep their energy focused on work rather than their money.
Fewer Financial Questions to HR
Employees have questions, and HR is not always qualified to answer. For example, "How many deductions should I put on my W-2" or, "How do my stock options work?" Customized lessons and benefits materials together with access to financial advisors for quick questions and in-depth meetings will reduce finance-related questions that your team may not have the time or expertise to answer.
“We’re always looking for ways to support Messer employees and their families outside of work,” said Theresa Cappel, HR Director at Messer. “We don’t have any financial experts on our team, and don’t want to get into the grey area of giving financial guidance to employees.”
Reduced Employee Turnover
Helping employees understand the financial value of their benefits and get on top of their financial situation can increase job satisfaction and retention, saving recruiting, onboarding, and training costs and minimizing work disruption.
Ready for a deeper dive? Get the information you need to help quantify your financial wellbeing results and prove the benefit ROI of your programs to your organization with The Financial Wellbeing Buyer's Guide.