Post on 13-Feb-2022
A Practical Guide to
Workplace Financial Wellness: The Plan Sponsor Perspective
Presented by:
Tony Verheyen, MA, CEBS
Sponsored by:
Dimensional Fund Advisors
Fall, 2017The author is not affiliated with Dimensional Fund Advisors. This material contains the opinions of the author but not necessarily of Dimensional Fund Advisors LP. The material is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. The opinions expressed are subject to change without notice.Tony Verheyen is an occasional speaker at events sponsored by Dimensional Fund Advisors LP and receives honoraria for this service.
Agenda
Financial Wellness: The Plan Sponsor Perspective
• Marketplace Discernment• The Movement, Claims, Rationale
• Sponsor-Level Application• The Plan, Process, Solutions
• Plan Sponsor Perspective• The Reality, Pitfalls, Do’s & Don’ts
• Questions & Conclusion
Marketplace Discernment
• Financial Wellness Movement• Recent Headlines
• SHRM (2017): 76% of ERs havefinancial wellness program
• Aon (2017): 80+% of ERs will offerfinancial wellness program this year
• WSJ (6/11/17): The Latest OfficePerk: Help Managing Your FinancialLife
??? = Only 18% of respondents to PSCA’s 59th Annual
401(k)/Profit Sharing Survey report having a program.
Marketplace Discernment
• Financial Wellness Movement• Gallup (2014): 39% thriving in financial well-being
• less likely to be depressed, obese, or have high blood pressure
• more likely to engage in healthy behavior
• Federal Reserve (2016): 44% of Americans would have to borrow money to cover a $400 emergency expense
• Bankrate (2016): 57% can’t cover unexpected $500 expense
• CareerBuilder (2017): 78% of Americans living paycheck to paycheck
Marketplace Discernment
• Financial Wellness Movement
Financially literate EEs are more productive and engaged at work, and more likely to be loyal to their ER.
Various studies
“Eighty percent of Americans agree they would benefit from having basic financial education and information.”
The 2009 Consumer Financial Literacy Survey, Harris Interactive, Inc., 2009
While the majority of EE respondents ranked a desire for employment-based financial education at the top of their wish list, ERs placed it at the bottom of their priority list.
Seventh Annual Study of EE Benefits Trends, MetLife, Inc., 2009
Marketplace Discernment
• Financial Wellness Defined• Control
• Stability
• Confidence
• Flexibility
• Knowledge
• Understanding
• Strength
• Satisfaction
Marketplace Discernment
• Financial Wellness Defined• Control
• Stability
• Confidence
• Flexibility
• Knowledge
• Understanding
• Strength
• Satisfaction
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Promote Ongoing Action, Dialogue & Interest
Additional Resources
Financial Wellness Foundation
Marketplace Discernment
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“[I] wish this was presented 25 years ago.”
“Presentation and information was excellent. Very informative.”
“The kit is awesome. I will construct mine tonight.”
“Just want you to know this was very
valuable.”
“I feel there was just enough info to
energize and not overwhelm. I also liked
that I’m coming away with action points for
myself for immediate implementation.”
“Very good, common sense info.”
“This has been a huge help and much
appreciated.”
Marketplace DiscernmentEnrich
Tuition.io
Student Loan Genius
Rich Dad RadioDoubleNetPay
Fiscal Fitness Clubs
iGrad
SoFi
GuidedChoice Sum180Guild Education
Ibotta
Ebates
Alight
The Mint
HelloWallet
Learnvest Payactiv Financial Finesse
Edu(k)ate
Betterment
SmartDollar
Pete the Planner
Retiremap
Peanut ButterGradifi
Limeade
Moven
Sponsor-Level Application
• Assessment & Implementation• Assess Situation
• Stakeholder Collaboration
• Set Goals• Organizational
• Individual (Awareness, Action, Rewards, & Insights)
• Construct Program• Resource (& Void) Identification
• Design & Partner Evaluation
• Solution Implementation
• Report & Refine
Sponsor-Level Application
• Assess Organization• Vision, Direction
• Business Strategy
• Industry/Competition
• Benefits Philosophy
• Operational Structure
• Technology
• Budget
• Assess Workforce• EE Demographics
• Gender• Generation• Education• Income• Language• Turnover• Geography
• EE Receptiveness• Aptitude• Attitude• Behavior• Confidence
Sponsor-Level Application
• Assess Insight• Existing Feedback
• Satisfaction Surveys
• Wellness Adoption
• Leadership Feedback
• Stakeholder Feedback
• New Feedback• Upcoming enrollments
• Future employee surveys
• Executives and managers
• Health, welfare, and wellness
Sponsor-Level Application
• Assess Resources• Vendors
• Features
• Communications
• Budget/Spend
• Awareness
• Reporting
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Financial Wellness Foundation
Additional Resources
Promote Ongoing Action, Dialogue & Interest
Sponsor-Level Application
• Stakeholder Collaboration• Internal
• Executives, Managers• HR, Benefits, Wellness• Risk Management
• External• Advisors• Carriers & Recordkeepers
• Health & Welfare• Retirement• Workers Comp• Training & Development
• Third Parties
Sponsor-Level Application
• Goals• Big Picture Questions
• Problem(s) you are trying to solve
• Impact of employee stress on:• revenue, profitability, health care expenditures, retention
• Value placed on:• reducing employee stress, developing employee life skills,
improving employee performance, and employee goodwill
• Perception of:• competition, impact, administrative efficiency, and tax efficiency
“Not everything that counts can be counted.”
Albert Einstein
Sponsor-Level Application
• Goals• Temporal, Spatial, or Divisional metrics
• Revenue related to presenteeism (sales, customer feedback, service response times)
• Costs related to turnover (hiring, onboarding, admin, severance)
• Costs related to internal measures of productivity
• Costs related to reduced absenteeism (FML, WC, STD)
• Costs related to reduced Change in Health Care Costs
• Costs related to health care (health scores, claims)
• Costs related to family care (FSA, FML)
“What’s the Hard Return on EE Wellness”
Berry, Mirabito, and Baun
Sponsor-Level Application
• Goals• Temporal, Spatial, or Divisional metrics
• Improved financial responses to health risk assessment
• Lower Glucose levels (tied to stress) in biometric screenings
• Increased attendance at organization-sponsored events
• Desired participation in ERISA and non-ERISA benefits
• Reduced loans and hardship withdrawals
• Fewer safety-related claims and OSHA violations
• Improved satisfaction survey results
“Do Workplace Wellness Programs Save ER Money?”Rand Corporation
Sponsor-Level Application
• Identify Gaps• Earning
• Spending
• Saving
• Borrowing
• Investing
• Protecting
• Planning
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Promote Ongoing Action, Dialogue & Interest
Additional Resources
Financial Wellness Foundation
Sponsor-Level Application
• Activate Tools• Assessments• Communication
• Generic, targeted, personalized• Actionable
• Education• In-person, online• Diverse, evolving
• Coaching/Advocacy• In-person, online, FinTech
• Product Enrollment• Traditional v. Non-Traditional benefits
• Rewards
Sponsor-Level Application
• Facilitate Action• Encourage planning• Improve spending habits• Reduce debt load
• Consumer• Student loans
• Increase saving and investing• Banking• Emergency• College savings• Retirement• Health Care
• Secure protection• Property & Casualty• Pre-/Post-Retirement• Legacy
Sponsor-Level Application
• Vet Providers• Strength/sustainability, experience, credibility
• People, process
• Role and tangible deliverables
• Integrate, execute, communicate, educate, report
• Technology, cyber-threat security, liability
• Cost structure, conflicts of interest
• Ability to move the needle
• Demonstrate impact on revenue and profitability
Sponsor-Level Application
• Report & Refine• Gather data• Evaluate results
• “Big Picture” questions• Temporal, spatial, divisional metrics• Other outcomes
• Review findings with stakeholders• Internal• External
• Calibrate plan• Execute
Plan Sponsor Perspective
• Feedback• Feels right
• Set reasonable goals
• Measure what matters
• No quick fixes
• Start simple
• Maximize resources
• Think beyond retirement
• Interview skeptically, and hire with caution
• Mobilize stakeholders
• Engage champions
• Demand more
• Centralize tools
• Personalize communication
• You can’t make a horse drink if it doesn’t want to
THANK YOUQuestions?