A new research report finds that rewards and points systems are particularly effective in driving employee engagement with employer-based financial wellness programs.
Titled “Advisors Take Steps to Measure Employee Engagement in Financial Wellness Programs” from the Retirement Advisor Council, it states that rewards programs have been quite successful on the healthcare front, where employees earn points for having regular medical checkups or going to the gym. They make just as much business sense in helping employees achieve and maintain financial wellness.
Indeed, the advisors surveyed say that, on average, 19% of their clients with a financial wellness program use a rewards or points program to stimulate participant engagement.
Points of entry
The report notes that employees usually access services one of three ways:
- Self-service portal (Web, app, automated phone, automated assistant)
- Group meeting (education)
- One-on-one coaching (counseling, planning, or even advice)
“Multimodal programs allow employees to select the point of entry that best fits their needs,” it explains. “The selection of metrics to include on the dashboard will vary depending on the points of entry available in the program.”
And the report advises sponsors to not merely monitor their financial wellness program, but to drive participation.
“I see more firms become interested in these programs,” Mark Ratay, CIMA, PRP, Senior Vice President, Financial Advisor, and Corporate Retirement Director at Morgan Stanley, said in a statement. “Firms with younger employees and more professional groups seem to be more interested. Pushing the offering out to the people as opposed to letting them know it is there.”
“Financial wellness and well-being have garnered increased attention in recent years,” added Wendy Daniels, vice president and Director of Retirement Strategy and Not-for-Profit Practice Leader at Transamerica. “Employees who experience financial difficulties during their working years are often unable to save and prepare adequately for retirement.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
