© Money Starts Here, LLC. All rights reserved. · _ Call in sick close to payday _ Cash out vacation time _ Ask for pay/salary advances _ Decline medical insurance due to

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© Money Starts Here, LLC. All rights reserved.

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Evaluating financial wellness solutions can be challenging! The industry is changing fast with so many products, services, and programs flooding the market. It can be difficult to figure out what options are available and which ones may be appropriate for your organization. First, let’s define financial wellness:

• The ability to make smart, confident financial decisions • To have control over day-to-day, month-to-month finances • The capacity to absorb a financial shock • To have and be on track to meet financial goals • Have financial freedom to make choices to enjoy life

Because needs, costs and options can vary greatly, we created this document to help you and your team evaluate if you should implement a financial wellness strategy, discover what types of solutions are available, and determine which ones will work best for your organization and employees.

WE KNOW YOU’RE BUSY! This document has information that will help you evaluate financial wellness solutions, and decide if implementing an employee financial wellness initiative at your organization is something you want to do. The following pages include:

• A quick overview of why financial wellness is such a hot topic • Six questions to ask when considering if your organization should implement a financial

wellness initiative • Different types of financial wellness solutions • No-cost and low-cost incentive ideas • Sample return on investment (ROI) calculations

It’s all here. Made simple for you! Ready, set…let’s get started!


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Why Financial Wellness? Before we dive deep, you might already be wondering – Why is financial wellness such a hot topic and growing in popularity? Because every year, employees dealing with financial stress cost companies a fortune in lost productivity and additional healthcare expenses. Research shows that financial stress suppresses the immune system and impacts your health. This drives up healthcare costs for the employee and their employer, and derails overall productivity. One of the glaring gaps in the education of Americans is how to manage money. The impact this has on a business’ profitability and economic growth is staggering. This affects everyone. People are vulnerable, struggling and suffering…the lack of financial literacy and financial stability has devastating effects on families, schools, businesses and communities. One bad financial decision can take years or even a lifetime to overcome. THE LACK OF FINANCIAL LITERACY:

• Limits an individual’s purchasing power and ability to secure basic needs • Leads to a financially stressed and sick workforce which impacts business profitability • Drains public resources AND restricts economic growth

What We Know – Many Employees:

– Have expenses that exceed their incomes – Are carrying large amounts of debt – Have no emergency savings – Suffer from anxiety and loss of sleep – Need help

THE CONCEPT AROUND FINANCIAL WELLNESS IN THE WORKPLACE IS SIMPLE: Two of the biggest personal distractions in the workplace are: Money and Health Reducing your employees’ financial stress and worries is one of the fastest and easiest ways to lower healthcare costs for everyone, and increase employee productivity at work. Employees who are not distracted and worried about financial problems are less stressed, healthier and can focus more on work. This leads to fewer health insurance claims, less downtime, absenteeism, and turnover – this fosters a happier, healthier, and more productive workforce. Financial wellness solutions can be one of the best ways to help your employees and your organization. The right blend of solutions can reduce financial stress and guide your employees through different financial stages of life, all while helping them appreciate the benefits you offer and pay so much for.


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Six questions to ask when

considering if your organization

should implement a financial wellness initiative.


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1. What is the primary reason you are considering offering this type of benefit? ___ Employees are asking for/need help ___ Attract and retain top talent ___ Be competitive in the job market ___ Keep employees as healthy and productive as possible ___ Help employees become financially secure ___ Be an industry leader ___ It’s the right thing to do ___ Control healthcare costs 2. Do employees ever…? ___ Call in sick close to payday ___ Cash out vacation time ___ Ask for pay/salary advances ___ Decline medical insurance due to financial limitations ___ Indicate financial hardships ___ Take out 401(k) loans ___ Have their wages garnished ___ Express difficulty paying down debt or budgeting ___ Get or make frequent personal finance phone calls ___ Delay retirement because they can’t afford it ___ Cancel dependent coverage off enrollment due to financial troubles ___ Underutilize the benefits you offer because they don’t understand them or can’t afford them If any of the above apply, here are some internal audit suggestions:

• Sick time close to payday • Cash out of vacation time • Employee loans/payroll advances • 401(k) loans • Wage garnishments • Off enrollment insurance cancellations • Voluntary benefit participation

3. What types of financial solutions do employees want/need? ___ Personal Finance Education: Budgeting, Debt, Financial Goals, Health Insurance, etc.

___ Student Loan Repayment/Tuition Assistance ___ Debt Consolidation ___ Short-Term/Employee Loans ___ Employee Discounts ___ Budgeting and Cash Management Tools/Technology ___ Personal Finance Counseling ___ Financial Advising ___ Healthcare Cost Transparency/Comparison Tools ___ Telehealth/Telemedicine ___ Identity Theft/Credit Monitoring ___ Retirement Savings Modelers ___ Tax Savings Accounts 401(k) - HSA/HRA/FSA ___ 529 Plans


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4. What are the financial mindsets and needs of your workforce? Baby Boomers – Gen X – Millennials – Gen Z/Post-Millennials ___ Retirement ___ Saving for college ___ Emergency savings ___ Debt burden/student loans ___ Supporting parents/adult children ___ Cost of living increases ___ Daily expenses ___ Expenses exceeding income

5. What are the communication preferences of your workforce? ___ In-person interactions ___ Phone and email communication ___ Mobile-first apps/technology ___ Sight, sound and video technology interactions 6. How would you rate the following on a scale of 1-10? (10 being most important)

1. Controlling benefits costs/cost reduction

1 2 3 4 5 6 7 8 9 10

2. Using benefits as a recruitment and retention tool

1 2 3 4 5 6 7 8 9 10

3. Saving HR time and expenses of onboarding/administering benefits

1 2 3 4 5 6 7 8 9 10

4. Impact of employee financial stress/employee productivity

1 2 3 4 5 6 7 8 9 10

5. Utilization of benefits offered

1 2 3 4 5 6 7 8 9 10

6. Reducing disability/workers’ comp claims

1 2 3 4 5 6 7 8 9 10

7. Lowering tax liability

1 2 3 4 5 6 7 8 9 10


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Financial Wellness Solutions

Programs - Products - Services - Resources Because each employer group is different and has unique needs, most organizations find that an effective financial wellness strategy needs a blend of various products, services, and resources incorporated into an overall program to meet employee needs and achieve the maximum ROI. One of the biggest financial wellness implementation barriers is reaching employees who need help. Educating and engaging them with various types of financial wellness solutions can be overwhelming, embarrassing and cause communication overload for the employees.

Typical Approach:


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Financial Wellness Programs

Financial Wellness Programs are an ideal way to help employees share their financial journey with others instead of feeling isolated and singled-out. It can be an effective way to help employees and provide essential personal finance education while effectively educating and engaging employees with employer-sponsored benefits and preferred service providers.

Generally: • Include personal finance education • Incorporate various financial products, services and resources • Use during onboarding, open enrollment and as ongoing annual programs • Integrate with existing health and wellness programs or used as standalone programs

Potential Weakness: In some situations, it may not be feasible for an employer to purchase a financial wellness program so it may be left to the Human Resources team to create a program, deliver the content and educate and engage employees about products, services, and employer-sponsored benefits.

Our Approach: Life-Impacting Financial Education

Helpingemployeesmakesmart,confidentfinancialdecisions.

Our My Financial Academy Workplace Financial Wellness Program is personal finance and employee benefits education for everyone! Created and delivered by Guinness World Record® Financial Literacy Program creator and presenter Denise Winston. Through online video courses that range from 10 minutes to one hour, employees learn how to budget, manage debt, set and achieve financial goals, and better understand, buy, and use financial products, services, and employer-sponsored benefits. Employee activity can be tracked, reported, and integrated into existing health and wellness programs. To help effectively educate and engage employees with their benefits, portals and courses can be customized to include links to additional employer-sponsored benefits, preferred service providers, and resources like the ones listed in the next section.


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FINANCIAL WELLNESS Products – Services – Resources

Budgeting and Cash Management Technology Tools/Apps: Mobile-enabled financial technology (fintech) that helps people track and manage money. These tools typically capture financial information from different sources like bank accounts, lenders, retirement accounts, and other financial sources

to provide an overview of your financial situation so you can evaluate and manage your financial life. Generally:

• Require login • Track: spending, saving, debt, credit score • Automate: savings, paying bills, investing • Aggregate: account balances and transactions

Potential Weakness: While this type of technology can be very helpful for employees to take action, it is often only a starting point and may lack high-value financial education. Information can often be over-simplified, and perceived conflicts of interest may exist.

Loans and Discount Merchandise Payroll deductions: Payday type loans or advances to help employees cover unexpected medical costs, car repairs, broken appliances, etc.

Generally: • Short-term loans • Low loan amounts • Payroll-deducted payment • Qualify based on length of employment and earnings • No credit check requirement • Ability to repay is not evaluated/debt-to-income not calculated

Potential Weakness: Because employees rarely have a budget, and credit and ability to repay are not used to qualify an employee for this type of loan, they can easily find themselves in a situation where their paycheck no longer covers their normal day-to-day expenses. This can easily turn a short-term loan into a lack of ability to secure basic needs.


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Coaching and Advising One to one: Assessment of the financial needs for individuals to help them with decisions on investing, tax laws and insurance. Largely helping employees plan for short-term and long-term goals, such as meeting education expenses and saving

for retirement through investments. Generally:

• Offer a dedicated person or group of planners • Meet via phone, web or in person • Include online tools/calculators • Link you to specific products • May provide optional automated/robo advisors Potential Weakness: Without basic investment education, it can be hard to know if you have a good financial advisor or a really good salesperson. It can be difficult to find a person/firm that can provide good investment advice, financial planning, tax advice and insurance products all under one roof.

Education and Financial Literacy Guide and teach: Education focused on helping employees better understand their benefits, how to use them, and how to budget, manage debt, save, handle credit, invest and make better buying decisions.

Generally:

• Short, animated videos • One hour webinars • May include games or be gamified • Include articles • Broad content library • Do not work towards specific goals • Limited tracking

Potential Weakness: Information can often be either over-simplified, boring or too complex. Perceived conflicts of interest may exist if the educator/provider is selling a product or service. Engagement can be difficult, and tracking may be limited. Research also shows that employees prefer to see a real person they can relate to, rather than animated videos or slideshare presentations.


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FINANCIAL WELLNESS Engagement/Incentive Ideas

Free stuff is hard to resist and can be an effective way to engage employees! Cheers and high-fives make us feel good when we win. So here are some giveaway, chance to win and prize ideas you can use if you decided to implement financial wellness at your organization and want to incentivize your

employees. No Cost/Low-Cost:

• First dibs on days off: The day after Christmas, Thanksgiving, etc. • Primo parking space • The amazing office for a month • Flex hours for a week • Bring your pooch to work • Senior management mentoring • Health and wellness points • Day off pass/extra PTO day

Benefits-Related:

• % Discounts on health insurance, voluntary benefits • Contribution to HSA/HRA/FSA • Additional 401(k) match (if plan permits)

Promote Better Health:

• Gym memberships • Stock the kitchen with healthy food • Cooking lessons • Personal training sessions • Life coach • Dietitian consultation • Fitness equipment

Make it Personal:

• Car services (gas card, oil change, detail) • House cleaning • Stylist session • Makeover (haircut/makeup) • Spa services (nails, pedi, massage, etc.) • Tickets (movies, special events) • Lottery tickets • Electronics (tablet, phone, computer, video games, etc.) • Memberships (Amazon Prime, big-box store, commuter/bus pass) • Gift cards (Amazon, Starbucks, big-box store, retailer) • Cash


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Vendor Selection Considerations:

• Cost of the program • Resources needed to implement and administer the program

• How success will be tracked, measured and reported • How long you are willing to support the program to see results • How or if the solution competes with, supports or integrates with other employer-sponsored

benefits/programs • Will it need individual promotion and/or education • Is it customizable • Can it be integrated into health and wellness programs • Can the program easily scale to reach remote locations, work schedules, and spouses • Will it provide high value to diverse age groups, backgrounds, cultures, and needs but yet

be inclusive • Does it address your employees’ most pressing financial problems

Notes: _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________

_________________________________________________________________________________

How Financial Wellness Solutions Can Deliver ROI

They can help employers: • Cut Healthcare Costs:

o Smarter utilization of benefits reduces costs and the risk of rate increases o Less employee financial stress leads to fewer health insurance claims

• Increase Employee Productivity: o Productivity is enhanced when employees are focused on their work; not their

personal finance issues o Having financially stable employees reduces turnover and improves the ability to

develop and promote future leaders • Minimize Disability and Workers’ Comp Claims:

o Lower stress and fewer distractions improves safety and leads to fewer claims • Decrease Tax Liability:

o Increased participation in tax-savings accounts may reduce tax liability


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Sample ROI Calculation

Lost Time Productivity According to PricewaterhouseCoopers’ 2016 Financial Wellness Survey, 28% of employees reported that issues with personal finances have been a distraction at work and 46% of those employees who are distracted by their finances at work say that each week they spend three hours or more thinking about or dealing with issues related to personal finances. 200 employees 28%= 56 employees financially stressed 46%= 26 of those spend 3+ hours per week worrying about and dealing with personal finance issues on the job 26 employees x 3 hours ea. = 78 hours per week of lost time productivity 78 hours x $25.80 (census bureau median income hourly rate) = $2,012 x 52 weeks = $104,624 per year Your amount $_______________ Telemedicine Utilization What would an increase in telemedicine utilization/participation rates mean for your organization? $_______________ Health Insurance Cost/Trend Health insurance rate increase ____% x annual premiums $_______ = $_______________ Tax Liability

What would an increase of 5% in participation of tax savings accounts mean for your organization? $ _______________ Disability/Workers’ Comp Claims What would a decrease in disability claims and/or a reduced mod rate mean for your organization? $_______________Approximate financial stress, tax and health-related cost savings for your organization. $_________________

Program investment $_________________

Potential Savings $________________


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Knowing about financial stress and financial wellness in the workplace is powerful, but knowing what you can do and doing something about it – that’s the game changer! If you would like to learn more about implementing a financial wellness strategy at your organization, we are here to help! WHAT YOU DO TODAY MATTERS! Let’s connect. We are eager to learn more about you, your needs and your organization. Together we can make a difference! We are standing by!

• Get help • Ask questions • Say hello! • Provide feedback • Call or email

Learn more about:

• Workplace Financial Wellness Programs • Telemedicine Implementation/Engagement Tools • Financial Literacy-Life Skills Programs

[email protected] 1-888-866-2820

Documents

© Money Starts Here, LLC. All rights reserved. · ___ Call in sick close to payday ___ Cash out vacation time ___ Ask for pay/salary advances ___ Decline medical insurance due to

© Money Starts Here, LLC. All rights reserved. · _ Call in sick close to payday _ Cash out vacation time _ Ask for pay/salary advances _ Decline medical insurance due to