Financial wellness program popularity rises among employers, up 63 percentage points in two years
May 07 2018 - 9:00AM
Business Wire
Growing awareness of how financial wellness programs benefit
employees has driven rapid growth in plan adoption among employers.
Now, they say big data could help measure results, customize
programs and fill remaining gaps, according to a survey from
Prudential’s Workplace Solutions Group, a business unit of
Prudential Financial, Inc. (NYSE: PRU).
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20180507005182/en/
Prudential's 10th survey of employee
benefits, Benefits and Beyond: Employer Perspectives on Financial
Wellness, finds the percentage of employers offering financial
wellness programs rose to 83 percent, up from 20 percent in the
survey two years earlier. An additional 14 percent of employers say
they plan to offer financial wellness programs in the next one or
two years. (Photo: Business Wire)
Prudential’s 10th survey of employee benefits, Benefits and
Beyond: Employer Perspectives on Financial Wellness, finds the
percentage of employers offering financial wellness programs rose
to 83 percent, up from 20 percent in the survey two years earlier.
An additional 14 percent of employers say they plan to offer these
programs in the next one or two years. The survey includes
responses from nearly 800 decision makers for group insurance
benefits at U.S. businesses with at least 100 full-time
employees.
“Our survey reveals that employers and employees report higher
satisfaction with their benefit plans when financial wellness
programs are offered,” said Vishal Jain, financial wellness officer
for Prudential’s Workplace Solutions Group. “Employees increasingly
look to their employers to help them achieve financial security,
and employers are seeking data and insights on how to respond and
influence better outcomes.”
No one-size-fits-all approach to financial wellness
Prudential’s survey examines varying employer attitudes about
financial wellness, as well as common types of financial wellness
programs, top metrics of success and potential barriers to
implementation:
- Employers who offer financial
wellness are more satisfied with their total benefits program
(61 percent), than those who do not (44 percent).
- Larger employers were more satisfied
with their financial wellness offerings (72 percent) than
medium (54 percent) or small employers (50 percent).
- Most large employers (61 percent)
believe data sharing is employees’ biggest barrier to
participation in financial wellness programs, citing “privacy
concerns” and “putting together all the data and information.”
- Overall, retirement plan and benefit
providers are the preferred providers of financial
wellness.
- Criteria for selecting financial
wellness providers are primarily driven by cost, ease of
implementation and expertise.
Employers continue to have a paternalistic view of their
overall employee benefits
Despite recent shifts in employment toward gig and other
alternative work arrangements that challenge the traditional
employer-employee relationship, the survey finds the majority of
employers are committed to offering employee benefits:
- The three most critical outcomes
employers want their benefits strategies to achieve are to
attract and retain talent, improve employee productivity, and
assure employees that they care about their financial
well-being.
- Sixty percent of employers think
they should provide benefits to employees and only 15 percent
say employees should be responsible for their own financial
well-being and future.
- Almost two-thirds (64 percent)
believe their employees are highly satisfied with their overall
benefits package, up from 41 percent in the previous survey.
- A third of employers say they should
be responsible for paying for all the costs of the employee
benefits they offer.
Measurement of financial wellness programs are
critical
According to the survey, employers primarily rely on employees
to tell them what types of financial wellness programs they need
and how to measure the success of the programs. Methods used
include surveys and informal feedback, analysis of internal data
around 401(k) loans or withdrawals, as well as wage garnishments.
More than two-thirds measure the impact of their financial wellness
programs at least quarterly.
“Employers recognize the best way to support employees is to
understand their needs,” Jain said. “As financial wellness becomes
the rule rather than the exception, financial services providers
that can use data to help employers develop better programs and
communications for employees will be increasingly valued.”
About Prudential Financial
Prudential Financial, Inc. (NYSE: PRU), a financial services
leader with more than $1 trillion in assets under management as of
March 31, 2018, has operations in the United States, Asia, Europe
and Latin America. Prudential’s diverse and talented employees are
committed to helping individual and institutional customers grow
and protect their wealth through a variety of products and
services, including life insurance, annuities, retirement-related
services, mutual funds and investment management. In the U.S.,
Prudential’s iconic Rock symbol has stood for strength, stability,
expertise and innovation for more than a century. For more
information, please visit news.prudential.com.
0317516-00001-00
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180507005182/en/
Prudential FinancialMedia:Monique Freeman,
973-802-3745monique.freeman@prudential.comTwitter:
@MoniqueR_PruPR
Prudential Financial (NYSE:PRU)
Historical Stock Chart
From Sep 2024 to Oct 2024
Prudential Financial (NYSE:PRU)
Historical Stock Chart
From Oct 2023 to Oct 2024