A New Wellness Paradigm. The Efficacy of Financial Education + Coaching

Transcription

1 A New Wellness Paradigm The Efficacy of Financial Education + Coaching 1

2 Goals for Today s Webinar Share learnings from 10+ years of work with 1000 s of employers Explain how you can benefit from over $500K in independent, unbiased education + coaching thanks to program partners Share lessons from State of Wisconsin Employee Trust Funds experience : Program Partners 2

3 Limited Time Opportunity Working with our project partners we are selecting up to 10 new companies (15 in total) to participate in the Financial Fitness COACH program. It includes: Independent, unbiased, online education and tools Up to 30 days of financial coaching at no charge In total, value of education + coaching being provided to employers at low or no cost is worth well over $500K thanks to program partners including: Program Partners 3

4 Today s Speakers Financial Fitness COACH Project Partners Shelly Schueller Director of Deferred Compensation Programs State of Wisconsin Dept of Employee Trust Funds Tarna Hunter Director of Strategic Engagement and Government Relations State of Wisconsin Dept of Employee Trust Funds Avon Kendrick Strategic Account Executive Financial Fitness Group Joe Saari Founder & Chairman Financial Fitness Group & former UW faculty member 4

5 Today s Agenda Today s Agenda The Need for Financial Wellness The Efficacy of Online Education + Coaching State of Wisconsin Case Study How Can You Get Involved? 5

6 The Average American is NOT Financially Fit The Average American is Not Financially Fit Aptitude Behavior Confidence 59% 77% 80% Or lower is the average score on basic personal financial literacy quizzes Living paycheck to paycheck and lack sufficient savings to pay for an emergency Have moderate to significant stress about money 1 6

7 What is the Impact for Employers? articles and research papers clearly show lack of financial fitness has a NEGATIVE IMPACT on employer profits and productivity Financial education and coaching can improve employee productivity, reduce stress but also increase participation in programs the company already has is place to help the employee! FINANCIAL STRESS costs employers $100B per year in lost profits and productivity 7 7

8 The Cost of Financial Stress per Employee FINANCIAL STRESS costs employers $2000 per employee per year in lost profits and productivity COSTS Turnover Absenteeism Payroll Expenses Health Care PROFITS Productivity Engagement Satisfaction 8 8

9 Examples of the Cost of Financial Stress 150 Hours of lost productivity 3X More preventable health issues 2X Absenteeism from work 46% of workforce spends average of 3 hours or more per week on financial topics on the job Employees with high levels of financial stress have up to 3X higher levels of preventable health issues Employees with high levels of financial stress have nearly 2X level of absenteeism 9

10 Employers are Actively Seeking Solutions 8 of 10 Employers Actively Seeking Solution 10

11 Today s Agenda Today s Agenda ü The Need for Financial Wellness The Efficacy of Online Education + Coaching State of Wisconsin Case Study How Can You Get Involved? 11

12 Financial Fitness COACH Team Members Financial Talented team Fitness who have COACH collaborated Project on dozens Partners of projects evaluating the efficacy of online education and / or financial fitness coaching for nearly 10 years J Michael Collins Director Center for Financial Security UW-Madison John Hoffmire Faculty Said School of Business Chairman of PFEEF Collin O Rourke Research Specialist Center for Financial Security UW-Madison Joe Saari Founder & Chairman Financial Fitness Group & former UW faculty member 12

13 Evaluating Efficacy of Online Education Collaborative effort with over 20 state governments, universities and other program partners to evaluate a new paradigm in delivering financial fitness in the workplace 1/4 The Cost 5X Better Results Innovation ~1000 Employers 2M+ Employees 13

14 Collaboration with ~1000 employers such as.. 14

15 Powerful and Proven Results Improvement in Employee Engagement Improvementin Employee Behaviors Up to5x Better engagement than traditional methods Up to ü Use of Budgets ü Financial Plans ü Retirement Savings ü Better Use of Benefits 70%! in aptitude, behavior, and confidence ü Decreased Debt ü Fewer Late Fees ü Less Financial Stress 15

16 Summary of Recent Publication Carly Urban Assistant Professor Economics Montana State University Michael Collins Director of Center for Financial Security University of Wisconsin-Madison Collin O Rourke Research Specialist Center for Financial Security University of Wisconsin-Madison

17 Online education field study 45 employers split into two groups (control and sample) Typical employee spent about 4 ½ hours in the course Research done to measure the results Collins, J. Michael, and Carly Urban The Role of Information on Retirement Planning: Evidence from a Field Study. Economic Inquiry 54(4):

18 Online education outcomes: Knowledge 30% 25% 20% 16% 10% 5% 4% 0% Credit Scores Interest Rates Stocks & Bonds Investing Note: Self-reported knowledge increases from baseline to follow-up survey

19 Online education outcomes: Behavior 50% 40% 25% 12% 14% 0% IRA Participation Making a Budget Retirement Account Contributions Note: IRA participation and budgeting are self-reported; retirement contributions are from administrative data. Increases over baseline.

20 Financial Fitness COACH Project 1/4 The Cost 5X Better Results Engagement Data 15 Employers Innovation 300K+ Employees 20

21 Our Guiding Principles Simple 1 hour per week Flexible Delivery options Measurable ROI and ROE 21

22 Guiding Principles of Research Accurate Reliable Unbiased Objective financial coaching provided for up to 30 days to employees free of charge by 3 rd party focusing on goal formation and attainment 22

23 Financial Fitness COACH Project 1/4 The Cost 5X Better Results Engagement Data 15 Employers Innovation 300K+ Employees 23

24 Engage Assess Educate Coach Report 24

25 Engage Assess Educate Coach Report Aptitude Behavior Confidence 25

26 Engage Assess Educate Coach Report 26

27 Engage Assess Educate Coach Report 27

28 Engage Assess Educate Coach Report 28

29 Engage Assess Educate Coach Report Sample Calculator RESULTS It appears that Social Security will replace approximately 33% of your current combined income of $130,000 Social Security Replacement Social Security $42,432 Not Covered $87,568 29

30 Financial Fitness ACADEMY Engage Assess Educate Coach Report Users have over 100 topics to choose from, including: Personal Finance Building Financial Security Financial Planning Retirement Planning Saving and Investing Intermediate Investing 30

31 Financial Fitness COACH Engage Assess Educate Coach Report COACH services are available to employees free of charge for 30 days During 30 day period COACH will provide Objective, goal-based one-on-one telephonic coaching Address common financial questions + including general information about your company s employee benefits Offer guidance and / or next steps for up to 30 days Coach will NOT provide specific financial advice 31

32 Robust Engage Reporting Assess and Educate Data Coach Report Tools for Program Administrators Understand Needs 32

33 Robust Engage Reporting Assess and Educate Data Coach Report Tools for Program Administrators Understand Needs 33

34 Today s Agenda Today s Agenda ü The Need for Financial Wellness ü The Efficacy of Online Education + Coaching State of Wisconsin Case Study How Can You Get Involved? 34

35 Financial Fitness COACH Wisconsin Case Study State of Wisconsin Department of Employee Trust Funds Tarna Hunter and Shelly Schueller

36 Financial Fitness COACH Pilot Partners Financial Fitness COACH Pilot Partners Avon Kendrick Strategic Account Executive Financial Fitness Group In conjunction with project partners will be selecting up to 10 new employers (15 in total) to benefit from up to $500K in independent, unbiased education + objective 3rd party coaching at little or no direct cost to employers 36

37 Financial Fitness COACH Results Thus Far 10,625 to complete the CHECKUP 5,931 to enroll in the ACADEMY 56,154 topics reviewed 3,791 to express interest to meet with a COACH 37

38 ETF: Public Benefits Administration ETF administers benefit programs for approximately 620,000 state and local government employees and retirees of the Wisconsin Retirement System, including: Retirement plans: defined benefit (Wisconsin Retirement System) Supplemental defined contribution (Wisconsin Deferred Compensation Program) Health insurance Disability Life insurance Employee reimbursement accounts

39 ETF: Who We Serve 52 state agencies who employ 30,000 + employees 424 school districts with 100,000+ employees 989 county and municipal governments with 62,000+ employees 40 state university and community college campuses with ~50,000 employees 39

40 2015 EMPOWER Campaign Surveyed employees Website w/ Agency Toolkit Presentations, Webinars & Workshops Posters, Brochures & Articles Benefit & Wellness Fairs One-on-One Counseling Twitter Campaign Financial Fitness CHECKUP

41 ETF s Financial Fitness Program Phase 1 (2015) A free 10-minute, online survey Available November - December 2015 Open to all state and local government employees Members received feedback on their overall level of financial stress, knowledge and behaviors Checkup assessed personal financial wellness (stress levels, stress management, savings habits) and level of financial knowledge (credit, taxes, Medicare, etc.)

42 2015 Financial Fitness Program Results Over 12,000 public employees in WI started the checkup and more than 10,400 completed their checkup, for a completion rate of 86%. Employees: Provided instant feedback for employees on the financial health and directed them to resources. Employers: Aggregate results by agency provided specific financial topics for wellness programming (examples: debt management, emergency savings and retirement planning) 42

43 ETF s Financial Fitness Program Phase 2 ( ) Step 1: Financial Fitness CHECKUP quick online survey that assesses and benchmarks financial aptitude, behavior, and confidence on a 1-10 scale Step 2: Online Financial Fitness ACADEMY learning recommendations and an offer to enroll in online tutorials Step 3: Financial Fitness COACH - Free financial coaching for 30 days for anyone seeking help with the financial tasks or topics

44 ETF s Financial Fitness Program Campaign Initial launch in October 2016 Ongoing efforts in 2017 Expanding beyond State of Wisconsin agencies to other groups ETF serves Focus on engaging members in whatever module appeals to them Engage in the Financial Fitness ACADEMY Connect with a Financial Fitness COACH, or Engage in the ACADEMY + a COACH Implementing a Follow-Up CHECKUP

45 2016 Financial Fitness Program Results 6,578 participants have completed a Financial Fitness CHECKUP 2,837 have enrolled in the Financial Fitness ACADEMY 16,992 financial topics have been reviewed 2,423 have expressed interest in meeting with a Financial Fitness COACH 212 employees have scheduled a meeting with a Financial Fitness COACH

46 Challenges Included: Challenges Staff of 2 doing ad-hoc with virtually no budget Statewide: 1,000s of employers and 100,000s of employees No direct confirmed communication channels for all employees Competing for employees attention along with other benefits-related issues (open enrollment, etc.) OPPORTUNITY

47 Lessons Learned by ETF A successful outreach campaign needs: Creativity use what s available Dedicated Resources Invested Partners/Champions who want to share opportunities with employees Customized Messages target your audience Multiple Nudges: online, in person, etc.

48 Follow ETF on Twitter Tarna Hunter, Director of Strategic Engagement and Government Relations Ph Shelly Schueller, Deferred Compensation Director Ph

49 Today s Agenda Today s Agenda ü The Need for Financial Wellness ü ü The Efficacy of Online Education + Coaching State of Wisconsin Case Study How Can You Get Involved? 49

50 How Can You Get Involved? In conjunction with project partners will be selecting up to 10 new employers (15 in total) to provide over $500K+ in resources including: Independent, unbiased, online education and tools including: FREE Financial Fitness CHECKUP for all your employees Access to the Financial Fitness ACADEMY for 2017 free of charge All of your employee may opt to connect with a Financial Fitness COACH free of charge for up to 30 days Robust reporting, data, and analysis to maximize learning 50

51 Selection Criteria for Employers Launch program 2017 (wait list for 2018 program) Target to engage ~1,000+ employees to complete online CHECKUP Have at least one person on your team serve as Financial Fitness Champion to roll out program Qualified companies will be selected on a first-come, first-serve basis 51

52 Benefits of Program Proven program used used by ~1000 companies who employ over 2,000,000 employees Independent, unbiased approach trusted by 20+ state governments and major universities Proven to drive up to 70% improvement in employee financial aptitude, behavior and / or confidence Award winning team with proven track record of success 52

53 Application Timeline and Details Start application process as soon as possible. (~ 5 spots left to fill as of this webinar) Its simple to get started. Take 1 minute today to reserve your option to become involved. Space is limited. Program available on first-come, first-serve basis. Get started today. Go To: 53

54 If Selected, What is Included? FREE online Financial Fitness CHECKUP for all of your employees Limited Space Available All of your employees can enroll in the Financial Fitness ACADEMY (a $200 value) free of charge for all of 2017 All of your employees can benefit from up to 30 days of interaction with a Financial Fitness COACH at no charge Go To: 54

55 Your Next Steps Get Started Today. Takes less than a minute! visit our website Schedule a short call to learn more, get a demo, etc. Schedule a call Fill out online application. No risk or obligation! Apply now! START NOW Go To: 55

56 Questions and Answers 56

57 Thank you! 57

58 More Information Joe Saari Founder & Chairman Financial Fitness Group Former UW-Madison Faculty member The Average American Direct: (608) is Not Financially Fit White Papers and Other Related Research The Economic Ramifications of Financial Stress: How Financial Wellness Benefits Boost the Bottom Line Adding Financial Wellness to Your Benefits Package: Top Line Benefits for Employers and Employees Workplace Financial Education Effects on Retirement Planning