Calculate how much employee financial distress costs you and estimate the employer's return-on-investment for providing workers with quality workplace financial education.
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Assumptions: A number work outcome factors are included in the PFEEF projected ROI calculation. This calculator makes reasonable and conservative assumptions about these factors based upon industry and employer-specific data as well as empirical research.
(For a precise employer-specific projected ROI based on your company data, please contact PFEEF at
Turnover and retraining costs
This figure for lower annual turnover costs for the employer reflects the reduction in the number of employees who otherwise would have left the employer. The turnover cost savings is based on the percentage of seriously financially distressed employees for whom the program has an impact substantial enough to prevent them from leaving. The calculation uses national cost figures and a conservative rate for annual turnover. It includes costs-per-hire as well as retraining costs.
Health care costs
This figure represents the employer’s reduced health care premium costs for the year following the delivery of the financial education program. It is based on the small percentage of employees who will reduce health care costs due to improvement in their personal financial behaviors.
This figure represents reduced employer costs due to unscheduled absenteeism. In the United States, the rate of unscheduled absenteeism is 2.3%, costing employers thousands of dollars in direct payroll costs alone. The calculations vary according to the financial wellness of the employees as well as the number who are seriously impacted in a positive manner by the financial education program. The calculation uses national cost figures.
Average Personal Financial Wellness™ (PFW™) score
The PFW is a self-administered 8-item questionnaire that in 3 to 4 minutes validly and reliably measures one’s personal financial health. National surveys show that the average mean score is 5.7 on a 10-point scale for the general population of working adults. Thirty percent of the people scored between 1 and 4 while 42% scored between 7 and 10 and 28% were at 5 and 6 on the continuum. Many employer’s employees average lower, such as 4.5, and some average higher, such as 6.1.
Job performance rating
This figure for improvements in performance rating represents the value to the employer based on increased level of performance. Calculations vary according to the financial wellness of the employees as well as the number who are seriously impacted in a positive manner by the financial education program.
This figure for reduced employer costs for garnishments considers both the direct costs of reducing the number of garnishments and the reduced amount of payroll-staff time needed per employee to process garnishments.
Percentage of employees impacted
This figure indicates the estimate of the number of employees whose personal financial behaviors will be impacted seriously by the financial education program to the extent that their work outcomes will be positively impacted. The default assumption is 30 percent even when 100 percent of employees are provided the program.
Health Flexible Spending Arrangement (FSA)
This figure for employer's reduced FICA taxes paid to the federal government represents estimated savings based on the additional percentage of employees who will enroll in the health FSA calculated using an employer contribution tax savings of 7.65%. The calculation recognizes that only a small proportion of employees not currently enrolled can be affected.
Dependent Care Flexible Spending Arrangement (FSA)
This figure for employer's reduced FICA taxes paid to the federal government represents estimated savings based on the additional percentage of employees who will enroll in the dependent care FSA calculated using an employer contribution tax savings of 7.65%. The calculation recognizes that only a small proportion of employees not currently enrolled can be affected.