People first, programs second a new approach to total rewards


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People first, programs second a new approach to total rewards

  1. 1. People First, Programs Second A New Approach to Total Rewards November 2013
  2. 2. POLL: People First, Programs Second is a: a) Campaign slogan b) Marketing phrase c) Consideration for 2014 total rewards planning d) Typo
  3. 3. Agenda 1. Speaker & HelloWallet Introduction 2. Designing Total Rewards Programs 3. People First, Programs Second 4. Employer Spotlight 5. Questions
  4. 4. Speakers Rob Pinkerton Chief Marketing Officer, HelloWallet John Lang Customer Success Manager, HelloWallet
  5. 5. HelloWallet Behavioral Science Driven Software Backed by Consumer Finance Expertise Webby Winner Best Financial Services Website for 2013
  6. 6. These Companies Love Us
  7. 7. Designing Total Rewards Programs Total rewards programs today are developed using numerous strategies and metrics including: • Program Benchmarking • Employee surveys & focus groups But do these account for employee behavior?
  8. 8. POLL: What role does employee behavior play in your total rewards design? a) A big role b) A moderate role c) A small role d) No role at all
  9. 9. Behind Every Employee, There is a Unique Story
  10. 10. Jonathan’s Story
  11. 11. “ So far, we’ve paid off 6 cards – almost $10,000. A huge unintended benefit of HelloWallet is that it helped my marriage.” – Jonathan
  12. 12. Choices, Perceptions, and Habits
  13. 13. Choice Overload
  14. 14. “ We don’t really have a savings account – I know the plan is to pay down one more credit card and then we’ll free up money to put into a savings account.” – New HelloWallet Member
  15. 15. Skewed Perception
  16. 16. “ The traditional paths to retirement are changing – they might not be available. Sometimes my fear takes me to a place of inaction.” – HelloWallet Member
  17. 17. Habit Formation
  18. 18. “ I finally feel like I have control over the family budget which has always been a real weakness for me.” – HelloWallet Ambassador
  19. 19. “ And it makes saving for retirement seem less big and scary.” – HelloWallet Member
  20. 20. POLL: Are your employees financially confident? a) Yes b) No c) Not sure
  21. 21. Market Observations
  22. 22. Employees are not financially ready to engage in consumer-driven benefits 70% of people live paycheck to paycheck 1/3 of employees spend 2-4 hour per day dealing with financial issues $70B #1 REASON leaked out of 401(k) plans in 2012 to access short-term capital #1 REASON people don't adopt CDHP is fear of deductible people don't adopt HSA/FSA is no understanding of what they spend
  23. 23. Little to no data to support decision making or measure performance No holistic data about people to inform program investments Limited ability to predict outcomes based on employee behaviors ROI measured emotionally versus objectively
  24. 24. Yet, benefits investments do no address foundational needs $6 Billion spend annually on investment advice which has nominal impact on portfolio wealth compared to savings Health programs increasing at 3x inflation while CDHP adoption is low Traditional financial planning programs cost prohibitive and yield average of 3-5% participation
  25. 25. Our Product Delivers a “Win-Win” Unbiased financial guidance to budget, plan, and increase prosperity Drives increased readiness for consumer driven Benefits Connects with Benefits best suited to individual needs (401(k), HSA, FSA, Insurance) New data intelligence about the holistic needs of employees to better align Total Rewards investments ROI realized in the form of cost savings and program improvements outcomes
  26. 26. POLL: Do you know how much money was removed from your 401(k) last year for non-retirement purposes? a) Yes b) No
  27. 27. People-centric impetus for providing financial guidance to workforce: Means to positively improve financial behavior Means to achieve prosperity through a proven data-driven approach
  28. 28. Cultivating Innovation
  29. 29. People-centric impetus for providing financial guidance to workforce: Means to achieve a solid financial foundation Means to improve individual retirement readiness
  30. 30. Saving the Extra Dollar with MMC
  31. 31. “ We learned the average employee is not looking for investment advice, they are looking to find the extra dollar to save to start with.” – Andrea Smith, Director of Health Wellness & Benefits March McLennan Companies
  32. 32. POLL: What would you like more data around to inform total reward decisions? a) Retirement readiness b) Financial stress c) Financial wellness d) Health spending
  33. 33. Snapshot of employer reporting
  34. 34. Want to Learn More? Visit our website Contact a HelloWallet representative
  35. 35. Let’s Build a Better Future