A Practical Guide to Workplace Financial Wellness

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.


• 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


• 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


• Financial Wellness Defined• Control

• Stability

• Confidence

• Flexibility

• Knowledge

• Understanding

• Strength

• Satisfaction


• 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


“We should have had this a long time ago.”

“Lots of informative ideas and suggestions.”

“[I] loved the unbiased comments about long

term care coverage how to select an advisor.”

“[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


• 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


• 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


• Assess Resources• Vendors

• Features

• Communications

• Budget/Spend

• Awareness

• Reporting

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• Stakeholder Collaboration• Internal

• Executives, Managers• HR, Benefits, Wellness• Risk Management

• External• Advisors• Carriers & Recordkeepers

• Health & Welfare• Retirement• Workers Comp• Training & Development

• Third Parties


• 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


• 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


• 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


• Identify Gaps• Earning

• Spending

• Saving

• Borrowing

• Investing

• Protecting

• Planning

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• 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


• 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


• 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


• 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?

Documents

A Practical Guide to Workplace Financial Wellness