Financial wellbeing ROI: is the return there? The answer is yes. In fact, few organisational investments will generate the same ROI than investing in a coherent, empowering financial wellbeing strategy. Why is this the case?
When it comes to employee benefits, if you want a return you need to test the benefit against four key principles:
- Is there broad appeal across the workforce i.e. does it appeal to everyone rather than just a niche?
- Do employees actually want it and will they actually use it?
- Is there a clear link between investing and better outcomes/behaviours at the individual level?
- Is there a clear link between investing and better outcomes/behaviours at the organisational level?
Financial wellbeing scores highly on each of these measures:
- Firstly, it has broad appeal – we are financial animals for our entire lives and everyone has to make financial decisions from the minute they enter the workforce to the minute they leave.
- Secondly, employees want it: a survey of 40,000 employees in 27,000 countries from Willis Towers Watson found that half (50%) wanted specific guidance around their financial situation.
- Thirdly, investing in financial wellbeing yields better outcomes at the individual level: a US study found a link between better financial wellbeing and an increase in pensions contributions (PDF).
- Finally, investing in financial wellbeing yields better outcomes at the organisational level: research from the CEBR (PDF) suggests 11% of employees suffered lower productivity as a result of financial stress
There are other reasons why investing in financial wellbeing at work provides a return on investment. Our report, Why financial wellbeing belongs at work, goes into more detail on why financial wellbeing ROI can be significant. Download it below.