Investing in your people’s financial health PAYS! Let’s see how much?
A financial wellness program can lead to substantial savings for your company. Here’s a quick breakdown of the ROI based on average numbers:
1. Reduced Turnover Costs
Assume:
- Annual Salary per employee: $24,000
- Number of Employees: 100
- Turnover Reduction: 1%
- Cost of Hiring and Training: 30% of employee salary
Calculation:
1% of 100 employees = 1 employee
Saving on cost of hiring and training = 30% of $24,000 = $7,200
2. Increased Productivity
Assume:
- Salary per Employee: $24,000
- Productivity Increase: One month of additional productivity for 50% of the population
Calculation:
$24,000 annual salary / 12 months = $2000 per employee
Total Productivity Gain = 50 employees * $2000 = $100,000
3. Reduced Absenteeism
Assume: saving 2 days of absenteeism annually for 50% of population
- Daily Salary: $24,000 / 260 working days = $92
- Absenteeism Reduction: 2 days per year
Calculation:
$92 per day * 2 days * 50 employees = $9,200
4. Total ROI Calculation
If the program costs $100 per employee annually, the total investment is $10,000.
Total Savings:
$7,200 (Turnover) + $100,000 (Productivity) + $9,200 (Absenteeism) = $116,400
ROI = ($116,400 – $10,000) / $10,000 = 10.6x
Bottom Line: For an investment of $10,000, your savings reach $116,400—a massive ROI. Financial wellness programs are a smart choice for a happier, more productive team and a stronger financial return.
Would you like to calculate ROI for your investment in Employee Financial Wellness?
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