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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
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Elizabeth Halkos
Vice President Sales and Marketing
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Increasing Interest Rates
Continuing Mortgage Crisis
Shrinking Credit Lines
Failing Financial Institutions
The Global Economy
IncreasingCredit Card
Rates
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Increasing Unemployment
Rising debt
Record-high foreclosures
Record-high credit card charge-offs
Unstable Economic Climate
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Increasing concern over health care costs
Companies under stress and in trouble
Need to cut costs
Boost morale and performance of employees
Employer Environment
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Jobless rate is 10%
119 million are credit challenged
15-20% of employees have financial problems severe enough to negatively affect productivity
Employees on Defense
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
75% of Americans experience moderate to high levels of stress
42% of Americans reported an increase of stress last year
Needed: Financial Health Care
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Causes of Stress
#1 Money & financial problems
#2 Work
#3 The economy
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Effect on Workforce
Poor health, fatigue, loss of motivation
Anxiety, headaches, depression
Indigestion, muscular tension
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Gender Differences
Women suffer most
Sleep deprivation
Overeating unhealthy foods
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Other Effects
Financial stress
mitigates the
effectiveness of
employee benefit
programs
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Financial Stress
Less satisfaction with pay
Wasted time at work
More absenteeism
Poor health
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Opportunity
Employees turn to employers for protection and assistance
Employers should find ways to ease stress and
improve quality of life for employees
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Opportunity
Engage employees in programs that
promote a better financial future
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Financial Literacy Programs
Teach employees to:
Manage finances
Make sound decisions
Understand debt literacy
Utilize discount and credit programs
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
How to Implement
Offer financial literacy courses
In-house staff members
Outside experts
Lunch and Learns
After work sessions
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
How to Implement
Help employees set financial goals
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Offer Budgeting Tools
Develop budgets
Monitor spending
Manage credit strategies
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Review Spending Options
Cash
Credit Cards - Credit CARD Act of 2009
Employee Purchase Programs
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Prepare for the Future
Create emergency fund
Plan ahead
Save for retirement
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Incorporate Total Rewards
Employee purchase programs like Purchasing Power
Group memberships
Telephone plans
Telecommuting options
Flexible work weeks
Casual dress code
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Promote Overall Wellness
Listening to music
Discounted gym memberships
Healthy eating programs
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
The Ultimate Goal
“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
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Motivate Employees
To take hold of their financial future
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Benefits to the Employer
Workers who are:
More engaged
More satisfied with their jobs
More financially secure
More happy
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Benefits to the Employer
Happier, more financially literate workers
+Increased productivity
= Strong, competitive organization
Happier, more financially literate workers
+Increased productivity
= Strong, competitive organization
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Benefits to the Employee
Less stress
Financial wellness
Needs are fulfilled
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Case Studies: Customers
"This was an excellent opportunity to purchase a top quality item at an affordable payment option."
- R . Kostak, Purchasing Power Customer, Gaming/Hospitality Industry
"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."
- M. Owensby, Purchasing Power Customer, Retail Industry
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
Case Studies: Employer
2010 Total Rewards Conference & Exhibition2010 Total Rewards Conference & Exhibition
It’s a Win-Win!
Emerge from
the recession
with a stronger,
more productive
workforce
