Employers Turn to Providers for Financial Wellness Program Offerings

Eighty-three percent of employers offer a financial wellness program to their employees, according to Prudential’s 10th survey of employee benefits, “Benefits and Beyond: Employer Perspectives on Financial Wellness.”

This is up dramatically from 20% in 2016. Additionally, 14% of employers plan to offer financial wellness programs within the next two years.

“Our survey reveals that employers and employees report higher satisfaction with their benefit plans when financial wellness programs are offered,” says Vishal Jain, financial wellness officer for Prudential’s Workplace Solutions Group. “Employees increasingly look to their employers to help them achieve financial security, and employers are seeking data and insights on how to respond and influence better outcomes.”

Sixty-one percent of employers that offer financial wellness programs are satisfied with their benefits program, compared to 44% of employers that do not offer a financial wellness program. Seventy-two percent of larger employers are satisfied with their financial wellness offerings, compared to 54% of medium-sized employers and 50% of small employers.

Sixty-one percent of large employers believe that employees are reluctant to share information about themselves in a financial wellness program, citing “privacy concerns” and “putting together all the data and information.”

Employers said they prefer to turn to retirement plan and benefit providers for a financial wellness program, and when assessing a program, they first look at cost, and then ease of implementation and expertise. They expect a financial wellness program to attract and retain talent, improve employee productivity and assure employees that they care about their financial well-being.

Sixty percent of employers think they should provide financial wellness benefits to employees; only 15% think employees should be responsible for their own financial well-being and future.

Sixty-four percent think their employees are highly satisfied with their benefits program, and 33% think employers should pay for all of the costs of employee benefits.

Employers use surveys to find out what kinds of financial wellness programs their employees want. They also analyze 401(k) loans and withdrawals. Sixty-six percent measure the impact of their financial wellness program at least quarterly.