5 Key Questions to Evaluate Financial Wellness Programs

Choosing the right financial wellness program for your workforce isn’t just about ticking a benefits box—it’s about creating real financial security for employees while aligning with business goals. In an era where financial stress is a leading cause of turnover and disengagement, employers must be strategic in their approach.

As Ted Benna, the father of the 401(k), has pointed out, traditional retirement savings plans aren’t always the best fit for today’s workforce—especially lower- and middle-income earners who often struggle with immediate financial needs. Instead, companies should look at holistic financial wellness solutions that support both short-term stability and long-term growth.

Here are five critical questions to ask when evaluating financial wellness programs to ensure they truly serve your employees and your organization.

1. What Tangible Outcomes Does This Program Deliver?

A financial wellness program should do more than just offer resources—it should drive measurable improvements in employees’ financial health. Look at the program’s impact on:

• Turnover and Retention: Does it reduce financial stress-related attrition?
• Emergency Savings Participation: Does it encourage employees to save for short-term needs, preventing 401(k) loans and early withdrawals?
• Retirement Security: Does it complement existing benefits without forcing employees to choose between short-term needs and long-term savings?

Benna’s Perspective: The 401(k) system was never designed for emergency financial needs, yet millions of workers rely on it as a lifeline. Programs that help employees build emergency savings can prevent unnecessary 401(k) withdrawals and strengthen long-term financial stability.

2. How Does It Drive Employee Engagement?

A great program is only effective if employees actually use it. Key engagement factors include:

• Personalization: Does it adapt to employees' varying financial needs?
• Ease of Access: Is it mobile-friendly and simple to use?
• Incentives: Are there employer matches, milestone rewards, or other motivators?

Benna’s Perspective: One of the biggest pitfalls of retirement plans is low engagement, especially among lower-income workers. A financial wellness program should make saving and financial education effortless and rewarding to ensure widespread participation.

3. How Easy Is It to Implement and Maintain?

A well-designed initiative should integrate seamlessly into your existing HR systems and payroll. Ask:

• Does it require significant administrative work?
• Can it sync with payroll for automated contributions?
• Is there ongoing support to ensure success?

If a program is difficult to implement or sustain, it’s unlikely to have a lasting impact.

4. What Is the Total Cost, and Does It Provide ROI?

Cost matters, but so does value. A high-quality financial wellness program should be an investment, not just an expense. Consider:

• Who funds it? (Employer, employee, or a shared model?)
• Does it directly address financial stress and turnover?
• Are the outcomes measurable and tied to business success?

Benna’s Perspective: Employers often pour money into benefits employees don’t fully utilize. A good financial wellness program should have a clear, demonstrable return on investment by reducing financial hardship-related turnover and increasing employee productivity.

5. Does It Support a Diverse Workforce?

Employees come from different financial backgrounds and have different needs. A strong program should be inclusive, offering:

• Multilingual resources
• Options for hourly and salaried workers
• Flexible savings plans that fit real-world needs

Benna’s Perspective: The original 401(k) concept catered primarily to higher earners who could afford to lock money away for decades. Today’s workforce requires more flexible solutions that address financial well-being at all income levels.

A Smarter Approach to Employee Financial Wellness

Selecting the right financial wellness initiative is more than a benefits decision—it’s a commitment to your employees' financial security. By asking the right questions, you can find a program that delivers real impact, aligns with business goals, and helps employees build financial resilience without relying on outdated savings models.

Let’s rethink financial wellness and build solutions that work for everyone.