With the continued cost of living rise, employees are demanding more from their employee benefits. ROI can be a tough metric to measure when it comes to benefits, with perks often provided to keep up with the competition, or because they are expected rather than because they provide a clear return.
But in a world in which everyone is pulling more tightly on their purse strings, there’s evidence that employers are scrutinising benefits much more closely for their ROI in a way that hasn’t been done before.
Not only are more firms measuring their benefits provision (around 48% of large firms now do), but they are also putting greater resources into explaining what is already in an employee’s reward package (the details of which many are often unaware of or under-value).
GRiD – the industry body for the group risk sector – has revealed four in five employees report having health and wellbeing concerns, with financial worries coming second as a contributor to this. But it also finds only 57% of employers believe their workforce is aware of all their benefits and that they actually understand them.
This is changing as pressures to provide benefits that actually make a difference are forcing firms to think differently.
Frontline sectors like hospitality see a measurable boost in shifts filled by existing colleagues, when they've invested in wellbeing benefits
Employers are increasingly consolidating their financial benefits into platforms like Wagestream, so they can track adoption and impact of benefits individually and in aggregate
Financial wellbeing ROI: is the return there?
The answer is yes. In fact, few organisational investments will generate the same ROI than investing in a coherent, empowering financial wellbeing strategy.
Why is this the case?
When it comes to employee benefits, if you want a return you need to test the benefit against four key principles:
Financial wellbeing scores highly on each of these measures
Secondly, employees want it: in Wagestream’s research of 5000 UK workers - they discovered that 65% of individuals want more help from their employer when it comes to their finances
Finally, investing in financial wellbeing yields better outcomes at the organisational level: research from Wagestream concluded that employees work 11% more hours when given access financial benefits that provide pay visibility - a significant boost to productivity.
In an era where financial concerns amplify employee stress, scrutinising benefits for tangible returns is essential. With around 48% of large firms measuring benefits, and only 57% believing employees understand them, the focus on ROI intensifies. Financial wellbeing emerges as a potent strategy, ticking all boxes—broad appeal, employee desire, individual and organisational-level impact, showcasing itself as a vital and rewarding investment for both employees and employers alike.