Promoting Financial Wellness and Disciplined Spending Among Employees

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If you missed last month’s WorldatWork Total Rewards 2010 Annual Conference and Exhibition, here’s a quick recap of the presentation made by Elizabeth Halkos, Purchasing Power’s vice president of sales and marketing.

In her presentation, Halkos commented that with the current unstable economic climate, we are witnessing increased unemployment rates, rising debt, record-high foreclosures, and staggering credit card charge-offs. For employers, there is increased concern over rising healthcare costs. Many companies find themselves under stress and in trouble, looking for ways to cut costs while making every effort to boost morale and individual performance levels of employees.

For many employees, the issue is the same; they find themselves financially stressed. This stress often mitigates the effectiveness of employee benefit programs. Financial stress leads to less satisfaction with pay, wasted time at work, more absenteeism, and even health issues.

Halkos pointed out that often employees turn to their employers for assistance and protection. This presents an opportunity for employers to find new ways to ease stress and improve the quality of life for their employees. One way to do this is to engage employees in programs that promote a better financial future including financial literacy programs where employees are taught how to manage their finances, make sound decisions, understand debt literacy and utilize employer-sponsored discount and purchase programs like Purchasing Power. By motivating employees to take charge of their financial future, employers will have workers that are more engaged, more satisfied with their jobs, more financially secured and happy.

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Promoting Financial Wellness and Disciplined Spending Among Employees

  1. 1. Promoting Financial Wellness and Disciplined Spending Among Employees
  2. 2. Elizabeth Halkos 2010 Total Rewards Conference & Exhibition Vice President Sales and Marketing
  3. 3. The Global Economy 2010 Total Rewards Conference & Exhibition Increasing Interest Rates Continuing Mortgage Crisis Shrinking Credit Lines Failing Financial Institutions Increasing Credit Card Rates
  4. 4. Unstable Economic Climate 2010 Total Rewards Conference & Exhibition <ul><li>Increasing Unemployment </li></ul><ul><li>Rising debt </li></ul><ul><li>Record-high foreclosures </li></ul><ul><li>Record-high credit card charge-offs </li></ul>
  5. 5. Employer Environment 2010 Total Rewards Conference & Exhibition <ul><li>Increasing concern over health care costs </li></ul><ul><li>Companies under stress and in trouble </li></ul><ul><li>Need to cut costs </li></ul><ul><li>Boost morale and performance of employees </li></ul>
  6. 6. Employees on Defense 2010 Total Rewards Conference & Exhibition <ul><li>Jobless rate is 10% </li></ul><ul><li>119 million are credit challenged </li></ul><ul><li>15-20% of employees have financial problems severe enough to negatively affect productivity </li></ul>
  7. 7. Needed: Financial Health Care 2010 Total Rewards Conference & Exhibition <ul><li>75% of Americans experience moderate to high levels of stress </li></ul><ul><li>42% of Americans reported an increase of stress last year </li></ul>
  8. 8. 2010 Total Rewards Conference & Exhibition Causes of Stress #1 Money & financial problems #2 Work #3 The economy
  9. 9. Effect on Workforce 2010 Total Rewards Conference & Exhibition <ul><li>Poor health, fatigue, loss of motivation </li></ul><ul><li>Anxiety, headaches, depression </li></ul><ul><li>Indigestion, muscular tension </li></ul>
  10. 10. Gender Differences 2010 Total Rewards Conference & Exhibition <ul><li>Women suffer most </li></ul><ul><li>Sleep deprivation </li></ul><ul><li>Overeating unhealthy foods </li></ul>
  11. 11. Other Effects 2010 Total Rewards Conference & Exhibition Financial stress mitigates the effectiveness of employee benefit programs
  12. 12. Financial Stress 2010 Total Rewards Conference & Exhibition <ul><li>Less satisfaction with pay </li></ul><ul><li>Wasted time at work </li></ul><ul><li>More absenteeism </li></ul><ul><li>Poor health </li></ul>
  13. 13. Opportunity 2010 Total Rewards Conference & Exhibition Employees turn to employers for protection and assistance Employers should find ways to ease stress and improve quality of life for employees
  14. 14. Opportunity 2010 Total Rewards Conference & Exhibition Engage employees in programs that promote a better financial future
  15. 15. Financial Literacy Programs 2010 Total Rewards Conference & Exhibition <ul><li>Teach employees to: </li></ul><ul><li>Manage finances </li></ul><ul><li>Make sound decisions </li></ul><ul><li>Understand debt literacy </li></ul><ul><li>Utilize discount and credit programs </li></ul>
  16. 16. How to Implement 2010 Total Rewards Conference & Exhibition <ul><li>Offer financial literacy courses </li></ul><ul><li>In-house staff members </li></ul><ul><li>Outside experts </li></ul><ul><li>Lunch and Learns </li></ul><ul><li>After work sessions </li></ul>
  17. 17. How to Implement 2010 Total Rewards Conference & Exhibition Help employees set financial goals
  18. 18. Offer Budgeting Tools 2010 Total Rewards Conference & Exhibition <ul><li>Develop budgets </li></ul><ul><li>Monitor spending </li></ul><ul><li>Manage credit strategies </li></ul>
  19. 19. Review Spending Options 2010 Total Rewards Conference & Exhibition <ul><li>Cash </li></ul><ul><li>Credit Cards - Credit CARD Act of 2009 </li></ul><ul><li>Employee Purchase Programs </li></ul>
  20. 20. Prepare for the Future 2010 Total Rewards Conference & Exhibition <ul><li>Create emergency fund </li></ul><ul><li>Plan ahead </li></ul><ul><li>Save for retirement </li></ul>
  21. 21. Incorporate Total Rewards 2010 Total Rewards Conference & Exhibition <ul><li>Employee purchase programs like Purchasing Power </li></ul><ul><li>Group memberships </li></ul><ul><li>Telephone plans </li></ul><ul><li>Telecommuting options </li></ul><ul><li>Flexible work weeks </li></ul><ul><li>Casual dress code </li></ul>
  22. 22. Promote Overall Wellness 2010 Total Rewards Conference & Exhibition <ul><li>Listening to music </li></ul><ul><li>Discounted gym memberships </li></ul><ul><li>Healthy eating programs </li></ul>
  23. 23. The Ultimate Goal 2010 Total Rewards Conference & Exhibition “ Anything companies can do to reduce that stress level for employees is something you have to look at.” - The Wall Street Journal March 18, 2009
  24. 24. Motivate Employees 2010 Total Rewards Conference & Exhibition To take hold of their financial future
  25. 25. Benefits to the Employer 2010 Total Rewards Conference & Exhibition <ul><li>Workers who are: </li></ul><ul><li>More engaged </li></ul><ul><li>More satisfied with their jobs </li></ul><ul><li>More financially secure </li></ul><ul><li>More happy </li></ul>
  26. 26. Benefits to the Employer 2010 Total Rewards Conference & Exhibition Happier, more financially literate workers + Increased productivity = Strong, competitive organization Happier, more financially literate workers + Increased productivity = Strong, competitive organization
  27. 27. Benefits to the Employee 2010 Total Rewards Conference & Exhibition <ul><li>Less stress </li></ul><ul><li>Financial wellness </li></ul><ul><li>Needs are fulfilled </li></ul>
  28. 28. Case Studies: Customers 2010 Total Rewards Conference & Exhibition &quot;This was an excellent opportunity to purchase a top quality item at an affordable payment option.&quot; - R . Kostak, Purchasing Power Customer, Gaming/Hospitality Industry &quot;I ordered a laptop computer after receiving a flyer at work. I love being able to order something I would not normally be able to afford because of interest rates on credit cards. I have so much going on with working full time, a child in kindergarten, another one at home, and a husband so not having to worry about one more bill has been great.&quot; - M. Owensby, Purchasing Power Customer, Retail Industry
  29. 29. Case Studies: Employer 2010 Total Rewards Conference & Exhibition
  30. 30. It’s a Win-Win! 2010 Total Rewards Conference & Exhibition Emerge from the recession with a stronger, more productive workforce

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