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[object Object],“ Workplace Financial Programs Are Profitable When Done Right” © 3 Square Financial, 2009
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Agenda for Today
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Employee Personal Financial Challenges in Retirement Saving
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Employee Personal Financial Problems
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Employee Personal Financial   Problems
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“ Don’t give employees a raise! Offer help with money management challenges” Employee Personal Financial Problems “60% live paycheck-to-paycheck and do not save enough for retirement”
[object Object],[object Object],[object Object],Employee Personal Financial Problems  –  Millions of Financially Unhealthy Workers
Source: InCharge Education Foundation, National Norms on InCharge Financial Distress/Well-Being Scale ©  for General Adult Population. 1 Means “Overwhelming Financial Distress/Worst Financial Well-Being”;  10 Means “No Financial Distress/Excellent Financial Well-Being”  © Copyright by InCharge Education Foundation and E. Thomas Garman, 2004-2009 All rights reserved. (Mean=5.7; SD=2.4) (1-4: 30%) High distress (5-6: 28%) (7-10: 42%) Low distress Employee Personal Financial Problems  Reflected in Financial Wellness National Norms on PFW Scale © 1 2 3 4 5 6 7 8 9 1 0 5.4 6.9 8.2 9.2 14.5 14.2 13.8 12.2 11.4 4.2 0 . 0 2 . 0 4 . 0 6 . 0 8 . 0 1 0 . 0 1 2 . 0 1 4 . 0 1 6 . 0 Percentage
30% Are Failing Financially!  (Scores of 1-4 on PFW)
[object Object],[object Object],[object Object],Employee Financial Illiteracy is an Employer Problem
[object Object],[object Object],[object Object],[object Object],[object Object],Employee Financial Illiteracy is an Employer Problem
Employee Financial Illiteracy is an Employer Problem ,[object Object],[object Object],[object Object]
Employers Often Recognize These Issues… But Do Nothing. “ You can lead a horse to water, but you can’t make it drink” Employee Financial Illiteracy is an Employer Problem
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Employer Costs: Research Proves ALL These Factors are Correlated in the Ways Expected
[object Object],[object Object],[object Object],[object Object],[object Object],Employer Costs: Research Shows that Health and Personal Finances are Correlated
“ Employer cost for not providing basic financial education that changes behaviors and job outcomes is $750 to $2,000+ per employee!” Employer Costs: Annual Cost to Employer for Ignoring One Worker’s Financial Illiteracy
Quality Workplace Financial Programs Rescue Employees  and  Employers by 1.  Decreasing  employee personal  financial distress 2.  Increasing  employee personal  financial wellness
[object Object],[object Object],[object Object],[object Object],[object Object],What does NOT reduce employee financial distress and increase financial wellness?
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“ Bring together the basic financial resources to truly help employees” What DOES reduce financial distress and increase financial wellness?
This is knowledge about •  Spending Plans •  Credit Management •  Savings “ AND The lack of financial literacy is  the major reason  why employees do not save for retirement” Quality Programs Emphasize “Basic Financial Literacy”
Quality Programs Result in Financially Literate Employees  Who are Engaged with Money Issues Human resources professionals can help make this happen  ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Quality Workplace Financial Programs Reduce Employee Financial Illiteracy and Save Employer $750 - $2,000+ “ It’s not a matter of money spent on financial education - It’s a matter of demanding effectiveness!”
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Quality Financial Program Result in Improved Employee Financial Wellness
“ Employers do not realize they can improve profits – and prove it– by helping employees improve personal financial behaviors” Quality Financial Programs Result in Improved Employer Profits
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],ROI = 3:1 Quality Financial Programs Result in a Positive ROI for Employers
3 Square Financials’ Approach to Projecting Employer’s ROI ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],3 Square Financials’ Approach to Projecting Employer’s ROI
3 Square Financial Projects 1-Year Changes in 6 Variables ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
3 Square Financial Could Project Additional Variables as Part of Employer’s ROI ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
3 Square Financial Assumptions Behind Employer Costs and Projected Improvements ,[object Object],[object Object],[object Object],[object Object]
3 Square Financials’ Conservative Assumptions of Program Impacts ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Recommendations
[object Object],Conclusions about Employee  Financial Literacy and Employer Profits “ It also is the right thing to do as stewards of employee well-being!”
[object Object],[object Object],[object Object],[object Object],[object Object],Footnotes

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Financial Wellness Programs Benefit Employees and Employers

  • 1.
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. Source: InCharge Education Foundation, National Norms on InCharge Financial Distress/Well-Being Scale © for General Adult Population. 1 Means “Overwhelming Financial Distress/Worst Financial Well-Being”; 10 Means “No Financial Distress/Excellent Financial Well-Being” © Copyright by InCharge Education Foundation and E. Thomas Garman, 2004-2009 All rights reserved. (Mean=5.7; SD=2.4) (1-4: 30%) High distress (5-6: 28%) (7-10: 42%) Low distress Employee Personal Financial Problems Reflected in Financial Wellness National Norms on PFW Scale © 1 2 3 4 5 6 7 8 9 1 0 5.4 6.9 8.2 9.2 14.5 14.2 13.8 12.2 11.4 4.2 0 . 0 2 . 0 4 . 0 6 . 0 8 . 0 1 0 . 0 1 2 . 0 1 4 . 0 1 6 . 0 Percentage
  • 9. 30% Are Failing Financially! (Scores of 1-4 on PFW)
  • 10.
  • 11.
  • 12.
  • 13. Employers Often Recognize These Issues… But Do Nothing. “ You can lead a horse to water, but you can’t make it drink” Employee Financial Illiteracy is an Employer Problem
  • 14.
  • 15.
  • 16. “ Employer cost for not providing basic financial education that changes behaviors and job outcomes is $750 to $2,000+ per employee!” Employer Costs: Annual Cost to Employer for Ignoring One Worker’s Financial Illiteracy
  • 17. Quality Workplace Financial Programs Rescue Employees and Employers by 1. Decreasing employee personal financial distress 2. Increasing employee personal financial wellness
  • 18.
  • 19.
  • 20. This is knowledge about • Spending Plans • Credit Management • Savings “ AND The lack of financial literacy is the major reason why employees do not save for retirement” Quality Programs Emphasize “Basic Financial Literacy”
  • 21.
  • 22.
  • 23.
  • 24. “ Employers do not realize they can improve profits – and prove it– by helping employees improve personal financial behaviors” Quality Financial Programs Result in Improved Employer Profits
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.