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How to measure the impact of your financial wellness program10 min read

Jun 19, 2023

According to the union budget 2023-24, the Indian middle class comprises people who earn between INR 2,00,000 to 5,00,000 annually. With the increasing cost of living, most live paycheck to paycheck. They spend all or most of their salary on paying rent, getting groceries, etc. So when an unexpected expense like a hospital bill shows up, they struggle with their finances.

The upper middle class is making physical investments from their savings. They’ve heavily invested in real estate and spend a portion of their salary on home loans, investing in mutual funds and FDs. When a sudden need arises, they find themselves in a fix, hesitant to break long-term investments and forsake the benefits over more minor requirements. Hence, they take small-term loans for significant interest and a financial hit.

In a country where 1 in 3 people fall under the middle class, chances are your employees are financially burdened with the same issues as mentioned above. Financial well-being, hence, has become an increasingly important aspect of employee well-being.

You need to catch up if you haven’t considered setting up a financial wellness program for your organisation yet. You need a continuous and comprehensive evaluation system if you’ve already set up a financial wellness program. This will ensure that your financial wellness program is aligned with your organisational goals and helps the employees achieve their personal goals.

Every organisation faces one or more of the following challenges due to employees’ financial stress:

  • Financial stress can lead to increased claims for stress-related illnesses and higher sick days taken per year.
  • Workplace accidents may be more likely due to decreased focus and increased distraction caused by financial stress.
  • Employees spending excessive hours at work worrying about their finances can negatively impact productivity and job performance.
  • Financial stress can increase compensation claims as employees may seek additional financial support due to challenging financial situations.
  • Employee loyalty may decrease as financial stress can impact job satisfaction and overall organisational engagement.
It is essential to periodically assess if your financial wellness program is helping solve these issues. You can do this by analysing how it is aligned with the employees’ needs and if it also helps the organisational challenges. Here are some metrics that can help quantify the impact of your financial wellness program:

Metrics to Evaluate Employee Wellness Program:

Employee satisfaction surveys: Regular employee satisfaction surveys can provide insights into how employees perceive the wellness program. Positive responses indicate that the program effectively improves overall satisfaction and well-being.
Retirement plan participation: Monitoring the participation rates in retirement plans can indicate employees’ financial security and engagement. Higher participation rates suggest that the wellness program has positively influenced employees’ financial planning and preparedness for the future.
Program participants: Tracking the number of employees actively participating in the wellness program demonstrates its level of engagement and popularity. Increased participation indicates that employees recognise the program’s value and actively seek its benefits.
Increase in employee productivity: Evaluating changes in employee productivity can help measure the impact of the wellness program. Higher productivity levels suggest employees are more focused, motivated, and engaged due to improved well-being and overall wellness.
Decrease in absenteeism for health-related/accidents/stress: Monitoring absenteeism rates related to health issues, accidents, or stress can indicate the wellness program’s effectiveness in promoting better physical and mental health. A decrease in absenteeism suggests that the program successfully addresses these concerns and improves employee well-being.
By assessing these metrics, organisations can gain valuable insights into the success and impact of their employee wellness program, enabling them to make data-driven decisions for further program enhancements and improvements.

Sources – theprint & TOI

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