Employees who repeatedly engage with financial wellness programs offered by their employer are benefiting from a compounding effect, whereby gains in financial health grow over time, according to Financial Finesse’s “Financial Wellness Think Tank 2017 Year in Review” research.
The firm’s analysis of its business finds repeat users increased from 33% of total users in 2016 to 58% in 2017.
Repeat users of employer financial wellness programs show substantial improvements in key areas. For example, 79% of repeat users reported having a handle on their cash flow in their last assessment, compared with 69% on their first assessment. Fifty-nine percent of repeat users said they had an emergency fund to cover unexpected expenses during their last assessment, compared with 49% during their first assessment, and 43% indicated they are on track to reach their income goal in retirement at their last assessment, versus 22% at their first assessment.
Compared with new users, repeat users are 24% more likely to be on track for retirement, 21% more likely to have confidence in their investments, and 19% more likely to have adequate life insurance, according to the research report.
Driving repeat usage
Financial Finesse says many of the employers represented in its study use technology, coupled with live financial coaching, to promote employee behavioral change.
To drive repeat usage, these employers are:
- Marketing their financial wellness program as an employer-paid employee benefit;
- Integrating financial wellness with other employee benefits;
- Offering incentives to participate;
- Offering unlimited one-on-one financial consultations via phone, in person or both; and
- Encouraging employees to use technology to measure progress.