American businesses have long realized the added value thathealth wellness programs deliver. A healthier workforce translatesinto a number of business benefits: fewer absences, more productiveemployees, better employee retention, and less stress on theemployer-sponsored health insurance program. Likewise, employeesenjoy access to programs that improve their health. Today, 77% ofemployers that provide health benefits offer at least one wellnessprogram.

Yet when it comes to financial wellness, employers have yet tofully understand the impact that an employee's financial conditionhas on the bottom line. Just 6% of employees surveyed stronglyagree that their employer does things to help them manage theirfinances more effectively[i].

Financial strains among your employees can happen quickly.Accidents, illnesses or unexpected deaths can create a devastatingburden that can impact not just the employee, but also thebusiness. In a recent survey, 24% of employees say that personalfinancial issues cause distractions at work, and 39% spend three ormore hours a week thinking about or dealing with those issues whileon the job[ii].

There's also a real impact to employers: 7 of 10 human resourcesprofessionals have seen personal financial issues impact – at timessignificantly – employee performance[iii].

Financial Wellness Defined

Financial wellness, simply put, is being protected against risksthat are both difficult to predict and could have significantfinancial consequences. There are any number of factors that canaffect one's financial wellness, and any one factor can threatenthe continuity of life for employees. Such risks include:

• Loss of income due to premature death
• Loss of income due to illness or injury
• Out-of-pocket medical and non-medical expenses
• Outliving assets in retirement

Today, many employees are focused on their retirement assets.However, just as many employees underestimate, or are unaware of anunexpected expense or loss that could be more devastating.Moreover, these risks are more immediate – they can happen at anytime and at any age or stage in one's career.

The Evolution of Financial Wellness

Luckily, employers are beginning to see the value in helpingtheir employees gain financial wellness. A 2014 survey of plansponsors revealed that 30% are very likely and 46% are somewhatlikely to create or expand resources available to participants toexamine financial wellness beyond retirement decisions[iv].

Studies also show that health and financial wellness areinextricably linked. Forty-eight percent of employees say thatdealing with their financial situation is stressful[v].Unexpected accidents or death can have a huge impact on financeswell into the future.

For the same reasons employers are benefitting from healthwellness programs they can benefit from financial wellnessprograms. According to the Consumer Financial Protection Bureau(CFPB), a financial wellness program could save companies anywherefrom $1 to $3 for each dollar they spend[vi].

Helping Employees Become Financially Fit

Creating financial wellness takes both understanding thepotential risks and having access to information and assistancethat can help employees protect themselves. For employers, it'sabout arming employees with the necessary education and tools toidentify and manage their financial risks.

Employers can start by:

Help employees understand needs andsolutions. Implement educational programs thatillustrate their financial risks, explain the importance offinancial wellness, and guide them toward solutions.

Use tools to gauge financial wellness ofemployees: Work with a provider to measure andunderstand the influences on employee financial wellness among youremployees.

Set financial wellness benchmarks:Create a baseline for your employee population, then use it toidentify employees who may need more assistance. Use the benchmarksto monitor the program and its effectiveness. Look for coveragegaps and customize communications to give them more educationalresources.

Use existing educational resources.Utilize the support of your benefits providers who can conduct aneeds analysis, answer questions, and give personalized coveragerecommendations.

Offer a comprehensive suite ofsolutions. Consider adding insurance coverage thatcan mitigate financial risks to your current benefits lineup, suchas life, disability, critical care, and accident. Use healthwellness programs, health savings accounts, and 401(k) and othersavings plans to help employees earmark finances toward unexpectedexpenses.

Wellness is Much More Than a Focus on theBody

Employee wellness extends well beyond the physical. Financialpressures can impact productivity, absence rates, retention andeven employee health. Employers are in a position to effectpositive change for their employees. Doing so can not only giveemployees more peace of mind, but also give employers a strongeradvantage in attracting and retaining top talent.

Needs-based financial wellness programs can improve how yourcompany approaches employee wellness. By understanding who amongyour employees is at risk and why, you can provide much-needededucation and resources that can help improve your employee'soverall quality of life.

[i] Robison, Jennifer. The Business Case for Wellbeing, GallupBusiness Journal, 9 June 2010. http://www.gallup.com/businessjournal/139373/Business-Case-Wellbeing.aspx#3

[ii] PricewaterhouseCoopers, “Employee Financial WellnessSurvey,” 2014, page 11. http://www.pwc.com/us/en/private-company-services/publications/assets/pwc-employee-financial-wellness-survey-2014-results.pdf

[iii] SHRM, “Financial Wellness in the Workplace,” May 2014.http://www.shrm.org/research/surveyfindings/articles/pages/2014-financial-wellness.aspx

[iv] Aon Hewitt “2014 Hot Topics in Retirement: Building aStrategic Focus.” http://www.aon.com/attachments/human-capital-consulting/2014_Hot-Topics-Retirement_Report_vFinal(1).pdf

[v] PriceWaterhousCoopers “Employee Financial Wellness Survey:2014 results.” http://www.pwc.com/us/en/private-company-services/publications/assets/pwc-employee-financial-wellness-survey-2014-results.pdf

[vi] Consumer Financial Protection Bureau “Financial wellnessat work,” August 2014. http://files.consumerfinance.gov/f/201408_cfpb_report_financial-wellness-at-work.pdf