Lydia G Jilek Senior Consultant Willis Towers Watson G. Jilek - Global... · Source: 2015/2016...
Transcript of Lydia G Jilek Senior Consultant Willis Towers Watson G. Jilek - Global... · Source: 2015/2016...
Global Financial WellnessLydia G JilekSenior ConsultantWillis Towers Watson
September 14, 2017
The Prudential Insurance Company of America (Prudential)
0308877-00001-00 © 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential.
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2015/2016 Global Benefits Attitudes SurveySurvey of nearly 30,000 employees in 19 countries
Americas Responses Europe Responses Asia Pacific Responses
Argentina 1,508 France 1,007 Australia 1,006
Brazil 1,004 Germany 2,281 China 2,005
Chile 1,005 Ireland 758 India 2,003
Colombia 1,001 Netherlands 1,006 Japan 2,002
Mexico 1,011 Turkey 1,031 Philippines 1,010
Canada 2,013 United Kingdom 1,895 South Korea 1,000
United States 5,083
For over a decade Willis Towers Watson has surveyed employees about health and retirement. This
survey fielded from June to August 2015 and is the second globally consistent survey. It includes
representative samples at non-governmental employers.
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Lessons learned from the survey
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Key global findings
1. Financial situation improves but long-term financial worries linger
2. Employees feel vulnerable, want security and are willing to pay for it
3. Employees’ issues are multi-faceted: health, financial and engagement issues tend to cluster
4. The business case: Health and financial issues affect business results through drag on productivity
5. Barriers: Weak engagement on health and financial issues is strongly linked to broader work experience
6. The role of the employer: Employees are in favor of employers taking an active role in their health and retirement, but are less certain on their being an employer role in financial issues. Employers need to build brand permission first.
Globally, 51% of employees are satisfied with their financial situation (+ 7 pps from 2013)
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55%+5 pps
Canada
48%+7 pps
U.S.
54%
+4 pps
Europe
50%+8 pps
Asia Pacific
Thinking about all aspects of my financial situation, I am satisfied with where I am today.
Source: 2013/2014 and 2015/2016 Global Benefits Attitudes Survey.
Note: In 2013/2014 GBAS Argentina, Colombia, France, Ireland, Philippines, South Korea and Turkey we not surveyed.
Sample: All employees. Except US and Canada, full-time employees only.
54%+7 pps
Latin America
My financial security has
become a more important
issue for me over the last
2 or 3 years
Global 65%
USA 74%
Canada 67%
Latin America 76%
Europe 60%
Asia Pacific 59%
In some countries less than half of employees are satisfied with their financial situation
►Thinking about all aspects of my financial situation, I am satisfied with where I am today
Financial satisfaction continues improving in the U.S. from lows seen in the crisis:
26% in 2009, 33% in 2010, 41% in 2011 and 46% in 2013
Source: 2015/2016 Global Benefits Attitudes Survey
Sample: All employees. Except U.S. and Canada, full-time employees only.
North America Europe Asia Pacific
Canada 55% France 57% Australia 52%
United States 48% Germany 57% China 56%
Ireland 40% India 65%
Latin America Netherlands 56% Japan 33%
Argentina 44% Turkey 42% Philippines 55%
Brazil 56% United Kingdom 52% South Korea 32%
Chile 43%
Colombia 43%
Mexico 60%
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1-in-5 employees believe that their financial problems are negatively impacting their life
Note: Percentage agree or strongly agree.
Source: 2015/2016 Global Benefits Attitudes Survey
Sample: All employees. Except U.S. and Canada, full-time employees only.
31% 21%38%
Global
36% 21%41%
United States
I often worry about
my current
financial state
I often worry
about how much
debt I have
I have financial
problems that
are negatively
affecting my life
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The long-term outlook is challenged…Half of employees are not confident of having enough resources to afford long spells in retirement
50%
31%
49%
53%
34%
47%
Lack of confidence in havingsufficient retirement resources -
25 years into retirement
Lack of confidence in havingsufficient retirement resources -
15 years into retirement
I often worry about my futurefinancial state
Global U.S.
When I come to retire
Social Security will be
much less generous
than it is now
When I come to
retire the medical
benefits provided
by the government
will be worse
My generation is likely
to be much worse off
in retirement than my
parents’ generation
are/were
Long-term concerns
Global U.S.
71%65%
70%58%
76%66%
Note: Percentage agree or strongly agree, not at all confident or not too confident
Source: 2015/2016 Global Benefits Attitudes Survey
Sample: All employees. Except U.S. and Canada, full-time employees only.
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We define four types of employees according to their financial worries
Source: 2015/2016 Global Benefits Attitudes Survey, U.S.
Sample: Full-time employees only.
UnworriedEmployees are not worried either for the
short- or long-term
Future worriesEmployees experiencing long-term
worries only
Current worriesEmployees experiencing short-term
worries only
StrugglingEmployees worried about both, the short-
and long-term
48%
20%
10%
22%
CU
RR
EN
T I often worry about my current financial state
I often worry about how much debt I have
I have financial problems that are negatively impacting my life
FU
TU
RE
I often worry about my future financial state
I feel confident I will have enough resources to live comfortably 15 years into retirement
I feel confident I will have enough resources to live comfortably 25 years into retirement
Profile of
employees
Based on the
following
questions:
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Segmentation of employees according to financial worries
Source: 2015/2016 Global Benefits Attitudes Survey.
Sample: All employees. Except US and Canada, full-time employees only.
47%
37%
46%
52%
48%
47%
27%
24%
30%
17%
20%
25%
11%
16%
7%
12%
10%
10%
15%
23%
17%
19%
22%
18%
Asia Pacific
Latin America
Europe
Canada
US
Global
UnworriedEmployees are not worried either for the short- or
long-term
Future worries Employees experiencing long-term worries only
Current worries Employees experiencing short-term worries only
StrugglingEmployees worried about both, the short- and
long-term
Profile of
employees
Global USA Canada EuropeLatin
AmericaAsia Pacific
Money concerns
keep me from
doing my best
work at my job
I have simplified
my lifestyle by
spending less
and delaying
major
expenditures
Financial worries linked to work and lifestyle change
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►Especially among those struggling or with current worries
Note: Percentage of respondents that agree or strongly agree.
Source: 2015/2016 Global Benefits Attitudes Survey.
Sample: All employees. Except US and Canada, full-time employees only.
8% 11%
52%
37%
4% 9%
32%28%
5% 12%
46%
27%
6% 8%
53%
39%
7% 11%
48%
39%
13% 13%
68%
47%
36%
44%
68%63%
42%
52%
63% 62%
38%
49%
69%64%
26%
44%
70% 70%
40%46%
68%
61%
35%40%
72%
62%
Unworried Future worries Current worries Struggling
Weaker sustainable engagement among financially worried
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Those struggling and with future worries show higher disengagement
Global US Canada EuropeLatin
AmericaAsia Pacific
Percentage
highly
engaged
Percentage
disengaged
48%
29%
52%
28%
49%
35%
43%
32%
47%
36%
44%
35%40%
29%
48%
26%
60%
42%
53%
34%
50%
22%
59%
22%
18%
34%
14%
33%
16%
26%
17%
29%
17%
25%
13%
23% 21%
32%
18%
35%
12%
21%15%
26%20%
42%
11%
40%
Source: 2015/2016 Global Benefits Attitudes Survey.
Sample: All employees. Except US and Canada, full-time employees only.
Unworried Future worries Current worries Struggling
Struggling employees are more stressed & have worse health
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Those with current worries tend to have better self-reported health
Global US Canada EuropeLatin
AmericaAsia Pacific
Percentage with
high stress
Percentage with
fair or poor health
Source: 2015/2016 Global Benefits Attitudes Survey.
Sample: All employees. Except US and Canada, full-time employees only.
14%
29%
13%
32%
4% 11% 6%
20%
7% 13% 9%16% 14%
22%17%
34%
5% 9% 7%15%
25%
48%
18%
52%
26%
50%54%
68%
21%
41%
49%
66%
24%
49%54%
66%
26%
47%53%
72%
23%
32%
49% 50%
30%
59% 59%
73%
Unworried Future worries Current worries Struggling
Employees are on-board to employer intervention
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Positive on health and retirement but apprehensive on personal financial matters
Strongly
preferPrefer
Slightly
preferNeutral
Slightly
preferPrefer
Strongly
prefer
RetirementEmployers should actively encourage
employees to save for retirement
Employers should provide a basic
retirement plan and let employees do the
rest
HealthEmployers should take an active role in
encouraging their employees to live a
healthy lifestyle
It is not the role of an employer to
encourage their employees to live a healthy
lifestyle
Financial issuesEmployers should take an active role in
encouraging their employees to better
manage their finances
It is not the role of an employer to
encourage their employees to better
manage their household finances
Targeted messagesI am comfortable if my employer sends
targeted messages to employees with
financial issues
It is not the role of an employer to send
targeted information to employees who are
not saving enough
USA Canada Europe Latin America Asia Pacific
Source: 2015/2016 Global Benefits Attitudes Survey.
Sample: All employees. Except US and Canada, full-time employees only.
Millennials are more receptive to an employer role
Source: Willis Towers Watson 2015/2016 Global Benefits Attitudes Survey, U.S.
Sample: Full-time employees only. Percentage indicating preference versus converse statement.
Employers should take an active role
in encouraging their employees to
better manage their finances
Employers should actively
encourage employees to
save for retirement
XXGeneration X
X
Y YGeneration Y
yBaby Boomers
34% 48%40%
62% 62% 70%
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Leverage on tools and apps used by employees
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Help employees manage their retirement and personal finances
Canada
USA
Latin America
Europe
Asia Pacific
Global
Note: Percentage that consider them important or very important.
Source: 2015/2016 Global Benefits Attitudes Survey.
Sample: All employees. Except US and Canada, full-time employees only.
Please indicate the degree of importance of the following tools in helping you to manage your:
Finances Retirement savings
52% 52% 40% 34% 28% 24%
59% 50% 40% 29% 21% 14%
57% 46% 38% 28% 21% 15%
48% 51% 25% 22% 19% 18%
52% 61% 49% 45% 34% 29%
49% 53% 45% 41% 37% 33%
56% 51% 31% 26%
62% 53% 26% 18%
60% 56% 24% 19%
49% 49% 21% 20%
71% 68% 44% 36%
52% 46% 37% 34%
Banking &
bill pay
Price
shopping
Investment
tracking
Household
budgeting
Online
advice
Online
forums
Savings
tracker
Adequacy
tracker
Online
advice
Online
forums
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Segmenting employees: Financial situation of employees has improved but
significant minorities have short- and long-term financial worries.
Employer role: Employees are partially open to employer intervention in their
health and finances, but targeted messages could be seen as too invasive.
Understand their priorities: Employees with financial worries report general
costs and paying off debts as their financial priorities, and prefer pay and
bonus over other benefits.
Connect via new technologies: Employees are quite comfortable using
series of tools and apps to manage their finances and retirement.
1
2
3
4
Employers’ considerations►What can employers do to help employees find their way?
1.9 2.8 2.5 3.5
8.610.3
9.1
12.4
Unworried Future worries Current worries Struggling
Money concerns keep me from
doing my best at my jobpercentage agree or strongly agree
4% 9% 32% 28%
Percentage with high sustainable
engagement 49% 35% 43% 32%
Days lost to absence and
presenteeism (FTE)
The links to employee performance
Struggling employees report more days lost due to absence and presenteeism,
and are less engaged
To presenteeismTo absence
Source: 2015/2016 Global Benefits Attitudes Survey, U.S.
Sample: Full-time employees only.
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The links to poor health
Unworried Future worries Current worries Struggling
Percentage with above average or
high personal stress 21% 41% 49% 66%
Health status
Employees with money worries are more likely to be stressed and in poor health
Very good healthGood healthPoor health
4%
29%67%
6%
30%64%
20%
43%
37%11%
39%
51%
Source: 2015/2016 Global Benefits Attitudes Survey, U.S.
Sample: Full-time employees only.
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What do we see in employer HR data?
Strong linkage between financial stress and employer costs
Results are based on 2 years of medical claims data, including only continuously eligible employees
Employer XYZ provided summarized medical claim cost information on a de-identified basis by financial stress level
$2,970
$3,215
$4,150
$1,000
$2,000
$3,000
$4,000
$5,000
Avg
. C
os
t to
Em
plo
ye
r X
YZ
Pe
r E
mp
loye
e
Financial Stress
$2,950
$3,200
$4,150
High Stress Group
Low Stress Group
Bubble size reflects the number of
employees in each segment of workforce
Sample results
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Average Annual Medical Cost (per employee)
Maximizing value: Employees’ financial priorities vary by personal situation
Debt and general cost of living are top of mind for struggling employees
Source: Willis Towers Watson 2015/2016 Global Benefits Attitudes Survey, U.S.
% of time cited among top financial priorities Unworried Struggling
60% or more ▪ Saving for retirement ▪ Pay off debts
50% – 59% ▪ General costs
▪ Housing
40% – 49% ▪ Housing
30% – 39% ▪ General saving
▪ General costs
▪ Pay off debts
▪ Saving for retirement
20% – 29% ▪ Other saving
▪ Leisure
▪ Children expenses
▪ General saving
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What would you say are currently your top financial priorities? Top priority.
Rank Gen Y Gen X Boomers
1 • • •
2 • • •
3 • • •
4 • • •
5 • • • General saving
Housing
Pay off debts
Saving for
retirement
Debt repayment is a top financial priority across all ages
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General costs
Source: 2015/2016 Global Benefits Attitudes Survey, U.S.
Sample: Full-time employees only.
Y BX Y BX
Saving for retirement 33% 56% 72%
Pay of debts 53% 47% 42%
Housing 55% 46% 34%
General costs 51% 42% 38%
General saving 36% 33% 33%
Other planned saving 29% 20% 22%
Leisure 20% 18% 19%
Children’s expenses 10% 23% 16%
Medical expenses 8% 13% 22%
Framework for financial well-being by life stages and needs
Financial resilience inflection point▪ Life-impacting decisions are made in a compressed timeframe
▪ Opportunity to deliver high value for employees and impact outcomes
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Career
progressionDecrease in income for
childcare needs
Dual
income
Rapid pay increases
Student debt Long-term care needs
Home purchase, lifestyle increase
Childcare costs and spending
pressure
Children’s higher education cost
Both partners in full-time work Individual and
family health
Longevity and market risk considerations
Elderly parent and adult children support
costs
20 30 40 50 60 65
Millennial Gen X Baby Boomers
What have we learned so far?
How can employee well-being programs evolve to deliver more value?
Today Tomorrow
SiloedWell-being compartmented in design, delivery & analytics
Strategic alignmentWell-being measured comprehensively; employee experience is integrated
Transaction-basedEmphasis on getting people into specific incentive structures
High-performingRe-casting delivery mechanisms and experience, such as private exchange
One-size-fits-allLimited choice in design and delivery
PersonalizedLife-situation, cultural preferences and demographics
Low engagementWell-being programs under-utilized by key segments
Employee experience at the centerConsumer-grade experience. Total rewards, EVP, brand
Financial incentivesCarrots and sticks
Social experienceHabit-influencing social experiences and re-phrasing aligned with family culture
ROI?Impact on employees’ outcomes and behaviors unclear
Efficiency and VOIData driven decisions, new insights towards increased engagement and productivity
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Tailored and differentiated…personalized…success measured by specific user segment…actionable reporting
Financial well-being: Emerging best practices
Cash
Management
Technology
Debt
Consolidation
Investment
Advisor
Personal
Financial
CounselorEmployee
Discounts
Financial
Health Risk
Assessment
$
Financial
Planning
Technology
Financial
Education
Video
$PersonalizeEngage Rationalize
Unworried
Struggling
Current Worries
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Delivering on today’s employee expectations of support
I expect you to know my situation...
Bring me smart suggestions...
Figure it out for me...
Tell me what I need to be doing...
Remind me...
Make it resonate...
Make it easy...
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Emerging best practices
Take the pulse: Measure the financial well-being, understand key drivers of financial
insecurity and culture of those at-risk
Start small: Prioritize, gradually build employee permission and trust with “low-
hurdle” services
Personalize, make it compelling and easy: Services and vendors that fit your
employees’ needs and vibe…easy to share stories and take action
Emotive metrics + technology + incentives have been very effective
Social and emotional connections: Include engagement approaches that maximize
the use of peers and champions, local managers, trusted colleagues. Use
vulnerability in stories, videos to create openness
Keep it fresh: Measure and monitor financial well-being metrics and reassess
strategy as needed
1
2
3
4
5
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