Financial Wellness: From Defining and Measuring Success to ...€¦ · Offer financial planning technologies that address short-term and long-term financial needs Offer student loan
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
willistowerswatson.com
Financial Wellness: From Defining and Measuring Success to Strategy and Implementation
47%Less likely to be satisfied with their financial situation
8 in 10 employees report financial or stress issues
66%Live paycheck to paycheck
2.5xMore likely to work past age 70
Source: Willis Towers Watson 2017/2018 Global Benefits Attitudes Survey
FINANCES HEALTH STRESS
willistowerswatson.com
Current state of the market
High variation in approach, style, operational rigor and maturity
Rapidly evolving vendor space Many startups with little track-record High due diligence requirements
Financial health of workforce has not been observable Few employers see usage over 10% per annum (of any
single financial wellbeing service) Unclear which solutions will deliver the most value for
employees Unclear which solutions will see high usage by those at-risk, at the right moment Business case for support is anecdotal Ability to evaluate effectiveness is very low Challenging for local management to operationalize
Source: 2017 Willis Towers Watson Best Practices in Health Care Employer Survey.Sample: Companies with at least 1,000 employees. Note: * Including ‘In place in 2017’, ‘Planned for 2018’ and ‘Considering for 2019.
Decision support Personalization
Debt management Analytics
Offer financial planning technologies that address short-term and long-term financial needs
Offer student loan education or decision support
52%
47%
30%
20%
Use consumer marketing techniques to develop a financial well-being strategy tailored to workforce segments
Offer assessment tools to identify the most important financial issues to address
27%
58%
6%
32%
Offer student loan support for preferred vendors and negotiated refinancing rates
Offer debt management services other than student loans (consolidation, refinancing)
38%
26%
12%
6%
Set specific metrics and objectives for your companywide financial well-being strategy focused on short- and long-term financial needs
Use HR data to evaluate the link between financial stress and employee health and performance
401(k) vendors Financial Engines Personal Capital Betterment Guided Choice FutureAdvisor Hedgeable Motif Wealthfront
Voluntary benefits providers
Affinity groups B2C insurance cos.
Retirement income solutions Hueler Financial Engines Some 401(k) vendors
willistowerswatson.com
Selection criteriaIllustrative examples
Selection Criteria ConsiderationsBusiness alignment What business characteristics does XYZ require of the financial wellbeing
providers? How should the provider culture and style align with specific segments of XYZ
Employees? To what degree should the provider integrate the Employee experience to
promote other XYZ services and avoid conflicting with current solutions?
Focus Purpose: Improve/reduce financial stress for significant segments of XYZ Employees Deliver higher value than direct-to-consumer and competitor employer options Provide higher quality consumer experience on financial issues including
convenience and confidence in decisions Amplify the integration and overall usage of XYZ benefits programs
Differentiation: Factors that will be unique about XYZ’s program versus competitor employers
and direct-to-consumer options
3-Year Target Minimum utilization by Employee segment Improvement in indicators of financial stress Net promoter score Survey feedback on value and experience in use of XYZ sponsored financial