When leading hospitality employers roll 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.
Financial wellbeing has quickly become the #1 most asked-for benefit. Many hospitality companies introduce financial wellbeing solutions knowing that it will reduce employee stress levels for hourly workers and executives alike. From a measurable ROI standpoint, how will financial wellbeing drive real results?
Hospitality HR teams love LearnLux because we are a true partner from day one. We help your employees build an emergency fund, pay down debt, save for their goals, plan for retirement and improve participation in other benefits.
Hospitality employers often see the following ROI impacts from their workplace financial wellbeing programs:
Healthcare cost savings
Financial stress can increase healthcare costs by about $400 per stressed hospitality employee annually. On the flip side, employees who participate in financial wellbeing programs are more likely to choose HSA-enabled health plans and make smarter decisions when it comes to their care.
Greater use of pre-tax accounts
When hospitality workers contribute to their FSAs, HSAs, 401Ks, and other pre-tax accounts, it reduces tax paymentsfor both employees and employers. This savings is close to $19 per employee, per month. At scale, a hospitality group with 10,000 employees could save over $2 million in payroll tax each year by helping employees opt into pre-tax benefits.
Hospitality employees are often financially unprepared for retirement. Many lack confidence in their financial plan, or need help making the complex decisions that come with this major life event. Helping hospitality workers at all income and asset levels plan and save for retirement can save 1.0% -1.5% of workforce costs annually for every one-year decrease in average retirement age.
Research shows that hospitality employees who are stressed by financial concerns are distracted or miss work 15.5 days per year. Think of a manager whose mind is on their mountain of student loans. Or, an hourly worker who receives distracting calls from creditors while on the clock. Even hospitality employees with a big (read: expensive) goal coming up like buying a home or saving for a wedding can find their mind wandering without the right guidance. Offering financial wellbeing with access to expert planners can help your team keep their energy focused on work rather than their financial worries.
Fewer financial questions to HR
Employees have questions, and your benefits team is often busy and not professionally qualified to give one-on-one guidance. For example, empoyees might ask, "How many deductions should I put on my W-2" or, "Which healthcare plan should I choose?" Customized lessons and benefits materials together with access to financial planners will reduce hours of finance-related questions that your team may not have the time or expertise to answer.
“We’re always looking for ways to support our employees and their families outside of work,” says Theresa Cappel, HR Director. “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 hospitality workers understand the financial value of their total rewards 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.