lydia g jilek senior consultant willis towers watson g. jilek - global... · source: 2015/2016...

Global Financial WellnessLydia G JilekSenior ConsultantWillis Towers Watson

September 14, 2017

The Prudential Insurance Company of America (Prudential)

0308877-00001-00 © 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential.

For Willis Towers Watson and Willis Towers Watson client use only.

2015/2016 Global Benefits Attitudes SurveySurvey of nearly 30,000 employees in 19 countries

Americas Responses Europe Responses Asia Pacific Responses

Argentina 1,508 France 1,007 Australia 1,006

Brazil 1,004 Germany 2,281 China 2,005

Chile 1,005 Ireland 758 India 2,003

Colombia 1,001 Netherlands 1,006 Japan 2,002

Mexico 1,011 Turkey 1,031 Philippines 1,010

Canada 2,013 United Kingdom 1,895 South Korea 1,000

United States 5,083

For over a decade Willis Towers Watson has surveyed employees about health and retirement. This

survey fielded from June to August 2015 and is the second globally consistent survey. It includes

representative samples at non-governmental employers.

© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential.

For Willis Towers Watson and Willis Towers Watson client use only. 2

Lessons learned from the survey



Key global findings

1. Financial situation improves but long-term financial worries linger

2. Employees feel vulnerable, want security and are willing to pay for it

3. Employees’ issues are multi-faceted: health, financial and engagement issues tend to cluster

4. The business case: Health and financial issues affect business results through drag on productivity

5. Barriers: Weak engagement on health and financial issues is strongly linked to broader work experience

6. The role of the employer: Employees are in favor of employers taking an active role in their health and retirement, but are less certain on their being an employer role in financial issues. Employers need to build brand permission first.

Globally, 51% of employees are satisfied with their financial situation (+ 7 pps from 2013)



55%+5 pps

Canada

48%+7 pps

U.S.

54%

+4 pps

Europe

50%+8 pps

Asia Pacific

Thinking about all aspects of my financial situation, I am satisfied with where I am today.

Source: 2013/2014 and 2015/2016 Global Benefits Attitudes Survey.

Note: In 2013/2014 GBAS Argentina, Colombia, France, Ireland, Philippines, South Korea and Turkey we not surveyed.

Sample: All employees. Except US and Canada, full-time employees only.

54%+7 pps

Latin America

My financial security has

become a more important

issue for me over the last

2 or 3 years

Global 65%

USA 74%

Canada 67%

Latin America 76%

Europe 60%

Asia Pacific 59%

In some countries less than half of employees are satisfied with their financial situation

►Thinking about all aspects of my financial situation, I am satisfied with where I am today

Financial satisfaction continues improving in the U.S. from lows seen in the crisis:

26% in 2009, 33% in 2010, 41% in 2011 and 46% in 2013

Source: 2015/2016 Global Benefits Attitudes Survey

Sample: All employees. Except U.S. and Canada, full-time employees only.

North America Europe Asia Pacific

Canada 55% France 57% Australia 52%

United States 48% Germany 57% China 56%

Ireland 40% India 65%

Latin America Netherlands 56% Japan 33%

Argentina 44% Turkey 42% Philippines 55%

Brazil 56% United Kingdom 52% South Korea 32%

Chile 43%

Colombia 43%

Mexico 60%



1-in-5 employees believe that their financial problems are negatively impacting their life

Note: Percentage agree or strongly agree.



31% 21%38%

Global

36% 21%41%

United States

I often worry about

my current

financial state

I often worry

about how much

debt I have

I have financial

problems that

are negatively

affecting my life



The long-term outlook is challenged…Half of employees are not confident of having enough resources to afford long spells in retirement

50%

31%

49%

53%

34%

47%

Lack of confidence in havingsufficient retirement resources -

25 years into retirement

Lack of confidence in havingsufficient retirement resources -

15 years into retirement

I often worry about my futurefinancial state

Global U.S.

When I come to retire

Social Security will be

much less generous

than it is now

When I come to

retire the medical

benefits provided

by the government

will be worse

My generation is likely

to be much worse off

in retirement than my

parents’ generation

are/were

Long-term concerns

Global U.S.

71%65%

70%58%

76%66%

Note: Percentage agree or strongly agree, not at all confident or not too confident





We define four types of employees according to their financial worries

Source: 2015/2016 Global Benefits Attitudes Survey, U.S.

Sample: Full-time employees only.

UnworriedEmployees are not worried either for the

short- or long-term

Future worriesEmployees experiencing long-term

worries only

Current worriesEmployees experiencing short-term

worries only

StrugglingEmployees worried about both, the short-

and long-term

48%

20%

10%

22%

CU

RR

EN

T I often worry about my current financial state

I often worry about how much debt I have

I have financial problems that are negatively impacting my life

FU

TU

RE

I often worry about my future financial state

I feel confident I will have enough resources to live comfortably 15 years into retirement

I feel confident I will have enough resources to live comfortably 25 years into retirement

Profile of

employees

Based on the

following

questions:





Segmentation of employees according to financial worries

Source: 2015/2016 Global Benefits Attitudes Survey.


47%

37%

46%

52%

48%

47%

27%

24%

30%

17%

20%

25%

11%

16%

7%

12%

10%

10%

15%

23%

17%

19%

22%

18%

Asia Pacific

Latin America

Europe

Canada

US

Global

UnworriedEmployees are not worried either for the short- or

long-term

Future worries Employees experiencing long-term worries only

Current worries Employees experiencing short-term worries only

StrugglingEmployees worried about both, the short- and

long-term

Profile of

employees

Global USA Canada EuropeLatin

AmericaAsia Pacific

Money concerns

keep me from

doing my best

work at my job

I have simplified

my lifestyle by

spending less

and delaying

major

expenditures

Financial worries linked to work and lifestyle change



►Especially among those struggling or with current worries

Note: Percentage of respondents that agree or strongly agree.



8% 11%

52%

37%

4% 9%

32%28%

5% 12%

46%

27%

6% 8%

53%

39%

7% 11%

48%

39%

13% 13%

68%

47%

36%

44%

68%63%

42%

52%

63% 62%

38%

49%

69%64%

26%

44%

70% 70%

40%46%

68%

61%

35%40%

72%

62%

Unworried Future worries Current worries Struggling

Weaker sustainable engagement among financially worried



Those struggling and with future worries show higher disengagement

Global US Canada EuropeLatin

AmericaAsia Pacific

Percentage

highly

engaged

Percentage

disengaged

48%

29%

52%

28%

49%

35%

43%

32%

47%

36%

44%

35%40%

29%

48%

26%

60%

42%

53%

34%

50%

22%

59%

22%

18%

34%

14%

33%

16%

26%

17%

29%

17%

25%

13%

23% 21%

32%

18%

35%

12%

21%15%

26%20%

42%

11%

40%




Struggling employees are more stressed & have worse health



Those with current worries tend to have better self-reported health

Global US Canada EuropeLatin

AmericaAsia Pacific

Percentage with

high stress

Percentage with

fair or poor health



14%

29%

13%

32%

4% 11% 6%

20%

7% 13% 9%16% 14%

22%17%

34%

5% 9% 7%15%

25%

48%

18%

52%

26%

50%54%

68%

21%

41%

49%

66%

24%

49%54%

66%

26%

47%53%

72%

23%

32%

49% 50%

30%

59% 59%

73%


Employees are on-board to employer intervention



Positive on health and retirement but apprehensive on personal financial matters

Strongly

preferPrefer

Slightly

preferNeutral

Slightly

preferPrefer

Strongly

prefer

RetirementEmployers should actively encourage

employees to save for retirement

Employers should provide a basic

retirement plan and let employees do the

rest

HealthEmployers should take an active role in

encouraging their employees to live a

healthy lifestyle

It is not the role of an employer to

encourage their employees to live a healthy

lifestyle

Financial issuesEmployers should take an active role in

encouraging their employees to better

manage their finances

It is not the role of an employer to

encourage their employees to better

manage their household finances

Targeted messagesI am comfortable if my employer sends

targeted messages to employees with

financial issues

It is not the role of an employer to send

targeted information to employees who are

not saving enough

USA Canada Europe Latin America Asia Pacific



Millennials are more receptive to an employer role

Source: Willis Towers Watson 2015/2016 Global Benefits Attitudes Survey, U.S.

Sample: Full-time employees only. Percentage indicating preference versus converse statement.

Employers should take an active role

in encouraging their employees to

better manage their finances

Employers should actively

encourage employees to

save for retirement

XXGeneration X

X

Y YGeneration Y

yBaby Boomers

34% 48%40%

62% 62% 70%



Leverage on tools and apps used by employees



Help employees manage their retirement and personal finances

Canada

USA

Latin America

Europe

Asia Pacific

Global

Note: Percentage that consider them important or very important.



Please indicate the degree of importance of the following tools in helping you to manage your:

Finances Retirement savings

52% 52% 40% 34% 28% 24%

59% 50% 40% 29% 21% 14%

57% 46% 38% 28% 21% 15%

48% 51% 25% 22% 19% 18%

52% 61% 49% 45% 34% 29%

49% 53% 45% 41% 37% 33%

56% 51% 31% 26%

62% 53% 26% 18%

60% 56% 24% 19%

49% 49% 21% 20%

71% 68% 44% 36%

52% 46% 37% 34%

Banking &

bill pay

Price

shopping

Investment

tracking

Household

budgeting

Online

advice

Online

forums

Savings

tracker

Adequacy

tracker

Online

advice

Online

forums



Segmenting employees: Financial situation of employees has improved but

significant minorities have short- and long-term financial worries.

Employer role: Employees are partially open to employer intervention in their

health and finances, but targeted messages could be seen as too invasive.

Understand their priorities: Employees with financial worries report general

costs and paying off debts as their financial priorities, and prefer pay and

bonus over other benefits.

Connect via new technologies: Employees are quite comfortable using

series of tools and apps to manage their finances and retirement.

1

2

3

4

Employers’ considerations►What can employers do to help employees find their way?

1.9 2.8 2.5 3.5

8.610.3

9.1

12.4


Money concerns keep me from

doing my best at my jobpercentage agree or strongly agree

4% 9% 32% 28%

Percentage with high sustainable

engagement 49% 35% 43% 32%

Days lost to absence and

presenteeism (FTE)

The links to employee performance

Struggling employees report more days lost due to absence and presenteeism,

and are less engaged

To presenteeismTo absence





The links to poor health


Percentage with above average or

high personal stress 21% 41% 49% 66%

Health status

Employees with money worries are more likely to be stressed and in poor health

Very good healthGood healthPoor health

4%

29%67%

6%

30%64%

20%

43%

37%11%

39%

51%





What do we see in employer HR data?

Strong linkage between financial stress and employer costs

Results are based on 2 years of medical claims data, including only continuously eligible employees

Employer XYZ provided summarized medical claim cost information on a de-identified basis by financial stress level

$2,970

$3,215

$4,150

$1,000

$2,000

$3,000

$4,000

$5,000

Avg

. C

os

t to

Em

plo

ye

r X

YZ

Pe

r E

mp

loye

e

Financial Stress

$2,950

$3,200

$4,150

High Stress Group

Low Stress Group

Bubble size reflects the number of

employees in each segment of workforce

Sample results



Average Annual Medical Cost (per employee)

Maximizing value: Employees’ financial priorities vary by personal situation

Debt and general cost of living are top of mind for struggling employees

Source: Willis Towers Watson 2015/2016 Global Benefits Attitudes Survey, U.S.

% of time cited among top financial priorities Unworried Struggling

60% or more ▪ Saving for retirement ▪ Pay off debts

50% – 59% ▪ General costs

▪ Housing

40% – 49% ▪ Housing

30% – 39% ▪ General saving

▪ General costs

▪ Pay off debts

▪ Saving for retirement

20% – 29% ▪ Other saving

▪ Leisure

▪ Children expenses

▪ General saving



What would you say are currently your top financial priorities? Top priority.

Rank Gen Y Gen X Boomers

1 • • •

2 • • •

3 • • •

4 • • •

5 • • • General saving

Housing

Pay off debts

Saving for

retirement

Debt repayment is a top financial priority across all ages



General costs



Y BX Y BX

Saving for retirement 33% 56% 72%

Pay of debts 53% 47% 42%

Housing 55% 46% 34%

General costs 51% 42% 38%

General saving 36% 33% 33%

Other planned saving 29% 20% 22%

Leisure 20% 18% 19%

Children’s expenses 10% 23% 16%

Medical expenses 8% 13% 22%

Framework for financial well-being by life stages and needs

Financial resilience inflection point▪ Life-impacting decisions are made in a compressed timeframe

▪ Opportunity to deliver high value for employees and impact outcomes



Career

progressionDecrease in income for

childcare needs

Dual

income

Rapid pay increases

Student debt Long-term care needs

Home purchase, lifestyle increase

Childcare costs and spending

pressure

Children’s higher education cost

Both partners in full-time work Individual and

family health

Longevity and market risk considerations

Elderly parent and adult children support

costs

20 30 40 50 60 65

Millennial Gen X Baby Boomers

What have we learned so far?

How can employee well-being programs evolve to deliver more value?

Today Tomorrow

SiloedWell-being compartmented in design, delivery & analytics

Strategic alignmentWell-being measured comprehensively; employee experience is integrated

Transaction-basedEmphasis on getting people into specific incentive structures

High-performingRe-casting delivery mechanisms and experience, such as private exchange

One-size-fits-allLimited choice in design and delivery

PersonalizedLife-situation, cultural preferences and demographics

Low engagementWell-being programs under-utilized by key segments

Employee experience at the centerConsumer-grade experience. Total rewards, EVP, brand

Financial incentivesCarrots and sticks

Social experienceHabit-influencing social experiences and re-phrasing aligned with family culture

ROI?Impact on employees’ outcomes and behaviors unclear

Efficiency and VOIData driven decisions, new insights towards increased engagement and productivity



Tailored and differentiated…personalized…success measured by specific user segment…actionable reporting

Financial well-being: Emerging best practices

Cash

Management

Technology

Debt

Consolidation

Investment

Advisor

Personal

Financial

CounselorEmployee

Discounts

Financial

Health Risk

Assessment

$

Financial

Planning

Technology

Financial

Education

Video

$PersonalizeEngage Rationalize

Unworried

Struggling

Current Worries



Delivering on today’s employee expectations of support

I expect you to know my situation...

Bring me smart suggestions...

Figure it out for me...

Tell me what I need to be doing...

Remind me...

Make it resonate...

Make it easy...



Emerging best practices

Take the pulse: Measure the financial well-being, understand key drivers of financial

insecurity and culture of those at-risk

Start small: Prioritize, gradually build employee permission and trust with “low-

hurdle” services

Personalize, make it compelling and easy: Services and vendors that fit your

employees’ needs and vibe…easy to share stories and take action

Emotive metrics + technology + incentives have been very effective

Social and emotional connections: Include engagement approaches that maximize

the use of peers and champions, local managers, trusted colleagues. Use

vulnerability in stories, videos to create openness

Keep it fresh: Measure and monitor financial well-being metrics and reassess

strategy as needed

1

2

3

4

5





©2017 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol, and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

lydia g jilek senior consultant willis towers watson g. jilek - global... · source: 2015/2016...

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