BENEFITS AND REWARDS SERVICES
SUPPORTING YOUR EMPLOYEES’
CHANGING FINANCIAL GOALS
Jamie MackenzieMarketing Director
2 –
1. Market issue: Financial wellbeing
2. Demographic of those affected
3. Impact on your organisation
4. How to address this issue
Agenda
Financial Wellbeing - Jamie Mackenzie
Market issue: Financial wellbeing
3 – Financial Wellbeing - Jamie Mackenzie
■ 63% of Britons worry about the lack of savings (StepChange Debt Charity)
■ 28% of employees struggle to save due to lack of discipline (Sodexo 2013)
■ Only 35% of employees feel optimistic about their financial future (Barclays 2014)
■ 7.4 m Britons have trouble sleeping because of money worries (StepChange Debt Charity)
■ Employees struggle with ‘key areas that relate to day-to-day money management and planning ahead’ (University of Bristol Personal Finance Research Centre)
■ Issue of workers not saving for retirement, addressed by auto-enrolment of pensions
Younger demographic worst affected as real incomes have fallen particularly
sharply for young adults.*
33% of 18-34 year olds say that money worries impact
their productivity in the office
4 – Financial Wellbeing - Jamie Mackenzie
AB Upper and middle class
43%
C1 Lower middle class 51%
C2/D Skilled and non-skilled working class
70%
*(Comparing 22-30-year-olds in 2012–13 with those in 2007–08, median household income (RPI-deflated) fell by 13% BHC and 20% AHC. This compares with falls of 7% and 11% respectively for those aged 31–59.(IFS: Living Standards, Poverty and Inequality 2014)
Money worries common for employees across all demographics
Worry about personal finances is a common theme across all social grades, with younger demographic (22-30) being the worst affected:
Independent Quantitative Survey for Sodexo (2013)
What employers think…
5 – Financial Wellbeing - Jamie Mackenzie
79% of employers agree that helping employees manage their finances would form part of their HR goals
(Sodexo 2013)
76% of employers agree that helping employees manage their finances meets their organisation’s CSR objectives
(Sodexo 2013)
Impact on your organisation
6 – Financial Wellbeing - Jamie Mackenzie
50% of stress related absences
are caused by financial distress
Absenteeism
Cost
Sick leave costs £40,500
per year
1 in 5 say financial
distress impacts their productivity
Productivity & Motivation
Cost
300 hours per year lost in productivity
due to financial distress
40% of staff turnover can be
attributed to financial distress
Cost
£30,614 to replace a single employee
(based on £25k earners across 5 sectors)
Retention
(Source: Sodexo, Unum and Barclays)
What employers can do
8 – Financial Wellbeing - Jamie Mackenzie
Reducing financial distress and increasing financial wellbeing:
Basic financial education
Credit counselling
Benefits information/education
Retirement education
Financial coaching and changing behaviours
(eFinplan)
When companies focus on employee health & financial wellbeing – it increases productivity,
competitive edge and improves ability to attract and retain talent.
(Towers Watson)
What employers can do
9 – Financial Wellbeing - Jamie Mackenzie
Demographic Short-term Medium-term
Younger Discount Shopping
Money Boost
Middle Discount Shopping
Money Boost
Senior Pensions Money Boost
Long-term
Pensions
Pensions
Pensions
Plan For Now
Plan For Tomorrow
Plan For Future
“An employee with financial issues costs the
employer 25 hours every month in lost productivity”
(Dr E Thomas Garman, President, Personal Finance Employee Education Foundation Professor Emeritus and
Fellow, Virginia Tech University)
Plan for now – Discount Shopping
10 – Financial Wellbeing - Jamie Mackenzie
Benefits to youA low cost way to motivate employees
Benefits to your employeesAccess to exclusive discounts
Employer take up (portal)
Employer take up (vouchers)
Employer take up (cards)
Employee take up (all)
0
0.1
0.2
0.3
0.4
0.5
0.6
0.0900000000000001
0.0800000000000002
35% 35%
35%
48%
0.40.36
0.2926%
34% 0.35
CIPD Reward Survey 2013
Sodexo Client Survey 2013
EBS 2011
Breakthrough 2013
EB / Xexec 2011
37% average employee take up, making it one of the most popular benefits
53% say Discount Shopping is highly valued by employees (Sodexo 2013)
Vouchers and cards offering exclusive discounts from a range of retailers, often accessible via a platform.
Plan for tomorrow – Money Boost
11 – Financial Wellbeing - Jamie Mackenzie
Money Boost card is issued by R. Raphael & Sons plc pursuant to license by Visa Europe Ltd. R. Raphael & Sons plc is a UK Bank authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (registration number 161302).
Plan for tomorrow – Money Boost
12 – Financial Wellbeing - Jamie Mackenzie
Money Boost is a simple practical tool
Empowers employees to establish better money management
Allows you to set and achieve medium-term financial goals
Employer reward through financial top-up
Applicable to the whole workforce
Simple and easy to implement and administer
Medium Term GAP in the market
In summary: Plan for now, tomorrow and the future
13 – Financial Wellbeing - Jamie Mackenzie
Improved Financial Planning2Enhanced Productivity3
Increased Retention4Increased Engagement5
Reduced Financial Stress1
Employees’ financial goals are changing so it’s important to offer solutions to support these …
Plan For Now Plan For Tomorrow Plan For The Future