Summary
A financial wellness programme pays for itself when it reduces costs you are already carrying: attrition, absenteeism, hiring and the admin of informal advances. The way to prove it is to measure those costs before you start, then compare.
A financial wellness programme pays for itself when it reduces costs you are already carrying: attrition, absenteeism, hiring and the admin of informal advances. The way to prove it is to measure those costs before you start, then compare. Here is a simple method finance and HR teams can use.
Step 1: List the costs financial stress creates
| Cost | How to estimate it |
|---|---|
| Attrition | Exits per month × cost to replace one worker (hiring, verification, training, lost output) |
| Absenteeism | Unplanned absent days × cost of cover (overtime, temporary staff, lost output) |
| Advance admin | Requests per month × time spent per request × staff cost |
| Advances written off | Advances not recovered when workers leave |
| Overtime to cover gaps | Overtime hours caused by short staffing |
Step 2: Pick the programme elements
Common elements for blue-collar and contract workforces:
- Earned Wage Access — access to earned wages before payday
- Financial education — short sessions on budgeting and safe borrowing
- Insurance — group health or accident cover
- Savings nudges — optional small savings from each payout
Step 3: Count the programme cost
With an NBFC-funded EWA model, the employer puts up no capital. Costs are mainly:
- Per-withdrawal fees, if the employer chooses to absorb them
- Setup and integration time
- Communication and training
Step 4: Measure the change
Run a pilot at one site or with one contractor for two or three pay cycles. Compare with a similar site that has not started. ROI = (Cost reduction − Programme cost) ÷ Programme cost.
Six ways the programme pays back
- Fewer exits, so lower hiring and training costs
- Fewer unplanned absences
- Less time spent handling advance requests
- Fewer advances lost when workers leave
- Less overtime needed to cover gaps
- A stronger employer brand for hiring
Frequently asked questions
- How long before we see ROI?
- Measure over at least two or three pay cycles. Attrition effects take longer to show than admin savings.
- What if we cannot measure attrition cost precisely?
- Use a conservative estimate and state your assumptions. Even rough numbers make the case clearer.