ROI and Workplace Saving Programs – What Does It Really Tell Us

Nearly 75% of Americans report money as being their biggest cause of stress. In the workplace, providing employees tools and resources to start saving and improving their financial wellbeing can help build a more financially stable workforce. Understandably, company leaders want to know what the Return on Investment (ROI) will be on these types of workplace saving programs.   

Most wellness programs are implemented to control costs, increase productivity, and improve overall health. They are typically measured by cost savings, satisfaction scores, number of sick days, productivity, and participation rates. While these measurements can offer helpful assessments, they alone may not represent full impact.  

Financial Stress and Employee Wellness 

Poor financial wellbeing can cost both employees and employers. According to a 2022 survey by PwC, 76% of employees with money worries say it affects their work negatively. Of those reporting money related stressors, 55% of them state that they spend around three hours per week on company time focusing on their finances. Some reported as many as 11 hours.     

Employees do want help. According to Bank of America’s Navigating a New Era of Financial Wellness, 80% of respondents said they believe their employer should take an active role in supporting their financial health.  America Saves heard similar sentiments in employee focus groups conducted in Wisconsin in February 2020 as part of the Wisconsin Saves Automatic Savings Initiative. A majority of employees reported that they would welcome financial resources that went beyond saving for retirement.  

Positive Results  

Employers can’t ignore that when employees are finically well, not only do we see increased productivity, sometimes by as much as 50%, but attrition is reduced, and recruitment improves. According to several surveys, financially stressed employees are two times more likely to search for a new job. Employees who are provided tools and resources that help them save easily and effectively report reduced money worries and stress, which results in improved overall employee performance and work performance. 

Similarly, America Saves measures financial confidence, which recognizes that individuals have unique circumstances and even if savings is difficult or impossible at this moment, you are committed to doing the work to take control of your finances and become more financially stable.  In America Saves 2022 year-end survey, savers who had at least one engagement with America Saves in 2022 scored higher on average across all five measures of financial confidence as compared to savers with no engagements in 2022. 

Further, financial wellbeing benefits can also help attract a larger pool of job candidates, and possibly more qualified ones. Financially well employees can spur morale improvements that result in increased energy levels, creativity, and overall functionality in the workplace.  

Understanding Employee Needs 

Measuring participation rates is one of the most common ROI benchmarks. Employers may expect a certain participation level to justify the benefit’s cost. A critical first step, though, in accurately examining participation rates is understanding employees’ financial needs. Participation rates calculated on the entire employee population versus the number of employees who may actually utilize a benefit can present an inaccurate measurement. Using surveys and focus groups to understand the types of resources and services that employees will use can help employers offer more targeted program components, resulting in proportionally higher participation rates.  

Carolyn Pemberton, Senior Program Manager with America Saves states that “A critical first step in designing any type of workplace saving program is understanding what needs your employees have. Offering benefits that don’t address employee needs will likely suppress financial wellbeing and financial confidence and may result in low participation rates.”  

Pemberton adds, “It's also important not to discount the impact of helping even a small group of employees. If there are employees who make meaningful strides in lessening their financial stressors, that’s a win that employers can take pride in.” 

Building At Work Saving Programs 

With productivity in the workforce at a 100-year low, along with current economic times adding stress to many American workers, having a workplace saving and financial wellness program in place is more imperative than ever. Yet having the time and resources to design and implement such programs can be a challenge, particularly in smaller organizations.   

To help elevate the importance and positive impact workplace financial benefits can have, America Saves in June 2022 launched the America Saves At Work Network. The network cultivates a solutions-oriented mindset by bringing together policy experts, benefit plan providers, employers, financial professionals and thought leaders to help alleviate barriers to establishing such programs.  

Bringing together a cross sectional group of organizations will provide Network members access to customized programming, technical assistance, networking, and collaboration opportunities. Organizations involved in the Network will have occasions to participate together on projects and research gaining insight into strategies, trends and tactics that increase the financial stability of working Americans. 

In one of its first projects, the Network recently released the Workplace Savings Collective. The online guide supports employers looking for assistance by featuring organizations with products and services employers can use to build a customized program that fits the needs of their employees.  

Beyond the Numbers   

When implemented effectively, a workplace saving program can produce excellent outcomes in overall employee wellbeing. Companies will have a more financially confident workforce that is better prepared to meet current and future saving goals and that provides employers with improved productivity, retention, satisfaction, and loyalty. In order to build programs that will be used and to measure the true ROI of such programs, employers need an accurate and complete picture of the financial issues of their employees.   

The America Saves At Work Savings Program and Network is a group of employers, benefit providers, financial professionals, and policy makers who have a vested interest in the offering of simple, sustainable, and effective workplace saving programs that meet the unique needs of employees. For more information, head to our website or email us at info@americasaves.org