More companies are embracing comprehensive financial wellness programs instead of basic financial education because of the bottom line benefits these plans offer.
It has been proven that financial stress has a negative impact on an employee’s health. Stressed out employees are more prone to health risks and higher health care costs, said Linda Robertson, a senior resident financial planner at Financial Finesse.
According to Liz Davidson, president and CEO of Financial Finesse, companies need to survey employees 30 days after an educational event to see if they made positive financial changes. Did they take at least one step to improve their finances, like paying off their credit card in full or starting an emergency fund.
Through its research, Financial Finesse found that 401(k) deferral rates averaged nearly 6 percent with one interaction with the company’s financial wellness program. For those with five or more interactions with the program, average deferral rates increased to 11 percent.
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