At a TPSU program held at the University of Georgia, the controller/HR manager of a 150 employee company who oversees the 401k plan explains how a financial fitness challenge which includes a series of quizzes with rewards at the end has help relieved stress and improve savings rates.
Rather than providing the same program to all, employees answer a questionnaire to determine their weaknesses and what they need to focus on. They then take a series of short quizzes which are graded instantly followed by an overall test to determine where they need the most help. Prizes are given to those participating.
The HR manager at the company has seemed a marked reduction in stress with more employees participating at a higher deferral rate. Overall, they appear to be more confident about their finances. The key to their success is making the tests bite-sized while providing rewards and making it fun with prizes at the end. Many financial wellness programs don’t work because the people that need it most are reluctant to join. By including all employees in the challenge, it’s easier to determine what each person might need.
The online classes and mini-quizzes also provide a fiduciary hedge in case, for example, a participant claims they didn’t understand target data funds yet there is a record that they completed a course on the subject.
There are many financial wellness programs available from record keepers and third parties but in the case of the Georgia based company attending TPSU, their advisor provided the program. According to a recent TPSU/NAPA survey, 49% of plan sponsors indicated that their advisor provided some sort of financial wellness program. But 63% of those that were very satisfied with their advisor were given access to financial wellness services. Though it is difficult to show the return on investment for financial wellness, making it fun, bite-sized and customized to each employee administered by the plan advisor helps.
