Poor engagement hinders financial wellness programs’ value

Both employers and employees agree that financial wellness programs have value, but disconnects between employers’ approaches and what employees want out of the programs impair their value.

That’s according to the 2018 Bank of America Merrill Lynch Workplace Benefits Report, which finds that just a third of employees actually participate in such programs, even though many are having a hard time financially.

In fact, 38 percent of employees believe they’re not doing well financially, and it’s worse among younger workers—with 44 percent of workers under 40 saying their finances aren’t in good shape.

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And while employees want help with long-term financial goals, such as ways to help them save and invest for the future, employers are focused on workers’ immediate financial needs and think budgeting and learning to handle expenses are more useful. In fact, employees say that advice and plans from a professional would be the biggest help in straightening out their finances.

Health enters into the problem, too, with just 7 percent of employees believing that health care is an important element of financial wellness. Meanwhile, 53 percent of employees have skipped or postponed at least one health care issue, such as a doctor’s appointment or filling a prescription, to save money.

Women, not surprisingly, are less financially well off than men, according to the report, with 49 percent of women saying they’re less than financially well; just 29 percent of men say they have that problem. There’s also a big gap between women’s retirement savings and that of men, with the former contributing less to their 401(k)s than their male counterparts and only having an average of $119,000 in investable assets while men have an average of $196,000.

But employees do know what they want out of financial wellness programs: personalized advice and help keeping track of how well or poorly they’re doing. A personal financial assessment with action items spelled out is at the top of their list, and they’d like financial wellness to be offered as a bundled program instead of employers providing standalone resources.

“Employees are speaking loud and clear about their desire for programs that give them a holistic, personalized and measurable roadmap for achieving financial wellness,” Lisa Margeson, head of Retirement Client Experience and Communications at Bank of America Merrill Lynch, says in a statement.