Implementing Financial Wellness into Your Organization

Transcription

1 Implementing Financial Wellness into Your Organization Presented By: Kelley Long, CPA/PFS, CFP Resident Financial Planner, Financial Finesse Financial Wellness Defined State of well-being where an individual has achieved the following: Minimal financial stress Living below their means with no high interest rate debt Emergency fund savings Income and assets protected from loss An ongoing plan to reach future financial goals Long_Handouts 1

2 Financial Stress Levels Only 15% of employees report feeling no financial stress. The majority, at 60%, have some financial stress. However, 25% of employees felt they are at a point that their financial stress is high or overwhelming. SOURCE: 2016 Financial Stress Report, Financial Finesse What are you looking for in a Financial Wellness Program? Start with strategic business needs: Talent Financial Stress Culture Long_Handouts 2

3 Generational Needs Employees who strongly agree that they need more help understanding how their benefits work and how these options help meet their needs SOURCE: 12 th Annual MetLife U.S. Employee Benefits Trends Study Common Obstacles to Implementing a Financial Wellness Program Budget constraints Internal struggle between Health & Welfare team vs. Retirement team Lack of staff resources to dedicate to the program Long_Handouts 3

4 Designing Your Organization s Financial Wellness Program Evaluate your culture, work environment, and demographics Will all employees get the same program? What channels will work best to educate your workforce? Delivery Method Online assessment and tools On-site workshops Webcasts Over the phone In-person financial coaching sessions Best For Initial introduction to program Manufacturing facilities and Baby Boomers Gen and Millennials Remote or field workforce Pre-retirees needing individualized guidance Best Practices for Behavior Change Self-Directed - Online Financial Learning Center & Mobile App Group Education - In person Workshops & Live Webcasts Personal Financial Coaching - 1x1 Financial Consultations & Financial Helpline Long_Handouts 4

5 3 Basic Approaches A Tool Based Approach A Program Based Approach A Benefit Based Approach A Tool Based Approach Limited budget Focused on a specific need Technology-driven solution Often available through the plan provider Biggest issues to address: Retirement estimates #1 most effective tool Discrete decisions around benefits i.e. which health care plan do I choose Refinancing of student loan debt Long_Handouts 5

6 Best Practices with a Tool Based Approach Survey employees and assess their needs based on data from benefits/financial wellness assessment Technology used must have airtight security to protect employee information Due diligence to ensure information provided is: Accurate Unbiased No conflicts of interest Sample Financial Wellness Assessment Long_Handouts 6

7 A Program Based Approach Strategically targets specific employees based on needs Goal is to change behavior and develop better financial habits vs. discrete decision-making Ongoing education or coaching through a set structure/series Designed for behavioral change, although focused on a niche Best Practices with a Program Based Approach Assessment of employees to determine which groups are most at risk Focus groups to determine how to best roll out and even which provider to implement Go with known providers that have established proven results Invitation-only marketing approach with commitment from targeted group Long_Handouts 7

8 A Benefits Based Approach All employees Part of the benefits package Used to significantly move the needle across the board Open architecture includes all benefits as well as other educational resources Provides financial guidance that can direct employees to the right resources Best Practices with the Benefits Based Approach The financial wellness program should be part of the company s culture and recruiting brand The financial wellness partner should be unbiased Open architecture program should be seamless, full integrated with company benefits An ongoing process to promote positive behavior change A robust marketing platform strategy should be used to maximize utilization and employee awareness of the benefit Long_Handouts 8

9 Level of Engagement Impacts Financial Behavior Behavioral Change Success Metrics *Source: 2014 Return User Analysis & Behavior Change Study Long_Handouts 9

10 ROI Results from a Multi-Year Financial Wellness Program Change in Health Care Costs $ $65.00 The Value of Financial Education on Healthcare Costs The observed improvement ($271.50) The population of users (9,083) = $2,466, Garnishments 6.1% 4.9% Non-Users Users The observed improvement (1.2%) The population of users (9,083) The estimated annual cost to process a garnishment ($300) = $32, Non-Users Users FSA and HSA Participation $1, $ The observed improvement ($358.37) The population of users (9,083) The tax savings on employer contributions to FICA (7.65%) hours Absenteeism hours The observed improvement (3.99 hours) The population of users (9,083) The median hourly salary for one employee ($25.24) = $249, = $914, Non-Users Users Non-Users Users Getting Started Tips and best practices: Provide unbiased financial coaching Use multiple channels to reach all employees Offer incentives to participants Employees should have ongoing access and support Assess your workforce yearly to benchmark improvement year over year Long_Handouts 10

11 Questions? Long_Handouts 11