Financial wellness programs have been introduced in companies with the aim to have sound financial systems that enable employees to break away from the paycheck to paycheck dilemma. A healthy financial life can contribute to employ wellbeing and productivity. But are these financial wellness programs really effective in achieving their goal. A new study reveals there is a big gap between financial wellness education and its practice.
The success of a financial wellness program is pinned upon progressive outcome in numbers and its ability to soak in the work place demographic. There needs to be a measure to ascertain achievement from point A to B that determine individual financial goals are meeting certain necessary standards. The measurement function will also decide if both the company and the employee are reaping the benefits of the financial wellness program.
The study analysis the theory and application, need to work hand in hand. “education-oriented vs. action-oriented financial wellness programs” are studied, that may distance the practitioners from the practice. The study that examined 401k participants found that a substantial number of younger employees said they would be more motivated to increase their retirement plan contributions if equal contributions to pay of their respective students’ loan came from their employers. Understanding the demographics, therefore was found essential in making bespoke financial wellness programs.
The report concluded that, “in the absence of a valid accountability component and a way to measure progress, education alone consistently fails to deliver to a goal”.
