Slide 1: Financial Wellbeing – An Employer Point of View
Financial Wellbeing – An Employer Point of View Aon Multinational Study – Results Session – Webinar July 10 to 12, 2018 Prepared by Aon Global Benefits Presentation to Global Benefits Day
Slide 2: Agenda
Agenda 01 03 Financial Wellbeing Future Framework Background /Context 02 04 Aon Multinational Case Studies Study: From Strategy to Practice Aon │Private & Confidential July 2018 1
Slide 3: Financial Wellbeing Background & Context
01 Financial Wellbeing Background & Context Aon │Private & Confidential July 2018 2
Slide 4: How We Define Wellbeing
How We Define Wellbeing Essentials Emotional Wellbeing: Belonging Purpose Fuel is a state of balance Physical that consists of having the appropriate Flourishing Sleep Movement resources, opportunities and Prepare Energy Wellbeing commitment needed to achieve optimal health Prepare Plan Plan Protect
Slide 5: The Birth of Financial Wellbeing – a Perfect Storm
The Birth of Financial Wellbeing – a Perfect Storm Increased life expectancies Student debt is rising in most Governments are looking to shift are leading to changes in developed countries around healthcare, retirement and other retirement age and working the world and is taking years social costs t
Slide 6: Aon Multinational Study From Strategy to Practice
02 Aon Multinational Study From Strategy to Practice Aon │Private & Confidential July 2018 5
Slide 7: Financial Wellbeing – An Employer Study
Financial Wellbeing – An Employer Study Participant profile is global benefits or global rewards leaders at multinational organizations “Understand how multinationals are Responses from 159 different multinationals approaching Financial Wellbeing and how this is likely to evolve in Results analyzed
Slide 8: Organizational Participant Profile
Organizational Participant Profile What industry is your organization in? How many countries do you operate in? 100 80 87 63 80 55 60 60 40 38 28 40 24 20 13 20 10 0 n = 159 0 n = 159 Financial Services Pharmaceutical Technology Other 5 or fewer 6 - 15 16 - 50 50+ What proportion of your employees a
Slide 9: Respondent Participant Profile
Respondent Participant Profile What is within the remit of your role (multiple Which country is your organization headquarters? answers allowed)? Retirement Benefits 136 Medical Benefits 120 122 104 Wellbeing 90 100 Total Rewards 83 80 Compensation 48 0 50 100 150 n = 159 60 What is the geographic r
Slide 10: Global Wellbeing Strategy – now and in 3 years time
Global Wellbeing Strategy – now and in 3 years time Do you have a global wellbeing strategy in place Will you have a global wellbeing strategy in place in today? 3 years time? All Industries 34% 66% All Industries 75% 25% Financial Services 38% 62% Financial Services 63% 37% Pharmaceutical 70% 30% P
Slide 11: Global Financial Wellbeing Strategy – now and in 3 years time
Global Financial Wellbeing Strategy – now and in 3 years time Do you have a Financial Wellbeing strategy in place Will you have a Financial Wellbeing strategy in today? place in 3 years time? All Industries 14% 86% All Industries 62% 38% Financial Services 25% 75% Financial Services 67% 33% Pharmace
Slide 12: Global Wellbeing Strategy – the details
Global Wellbeing Strategy – the details What are the objectives for the strategy (multiple answers allowed)? Improve engagament 53 It is the "right thing to do" 37 Improve productivity Does the wellbeing strategy include a financial 34 component? Support benefits 60 package 34 Reduce medical costs 2
Slide 13: Financial Wellbeing Strategy – the details
Financial Wellbeing Strategy – the details What are the key objectives for the Financial Wellbeing strategy (multiple answers allowed)? Reduce financial stress 21 Improve engagement 17 Support benefits package 16 Improve productivity 12 It is the "right thing to do" 11 0 5 10 15 20 25 n = 22 What ro
Slide 14: Poll Question
Poll Question What type of financial wellbeing solutions are being implemented or considered by your company? (Select all that apply): 1. Flexible or Voluntary Benefits 2. Financial Education seminars 3. Retirement Planning Workshops 4. EAP with a financial component 5. Employer subsidized financial
Slide 15: Financial Wellbeing programs being offered around the world
Financial Wellbeing programs being offered around the world How many of your businesses already offer Financial Wellbeing products or solutions to employees? 120 99 100 80 60 40 21 23 16 20 0 n = 159 Less than 25% 26% - 50% 51% - 75% More than 75% What programs do your businesses offer to employees
Slide 16: Poll Question
Poll Question In general are your employees utilizing the Financial Wellbeing programs? (Select one): 1. Yes 2. No 3. I don’t know, we don’t track Aon │Private & Confidential July 2018 15
Slide 17: Utilization and monitoring of Financial Wellbeing programs around the world
Utilization and monitoring of Financial Wellbeing programs around the world In general are your employees utilizing the Financial Wellbeing products on offer? 100% 92% 80% 60% 40% 20% 8% 0% n = 159 No Yes How are you monitoring the utilisation of the Financial Wellbeing programs / products 60% 47% 4
Slide 18: The future of Financial Wellbeing
The future of Financial Wellbeing How will the significance of Financial Wellbeing change within your employment proposition over the next 3 years? 100% 77% 80% 60% 40% 22% 20% 1% 0% n = 159 More Important No change Less Important Do you have definite plans to implement programs in the following are
Slide 19: Key Conclusions from the Study
Key Conclusions from the Study Financial Wellbeing is an emerging and growing topic: ‒ Nearly 80% of multinationals see the significance of Financial Wellbeing growing in the next 1 – 3 years ‒ Yet over 90% of multinationals think that their employees have a very basic or no understanding of Financi
Slide 20: Future Framework
03 Future Framework Aon │Private & Confidential July 2018 19
Slide 21: Developing a Financial Wellbeing Strategy
Developing a Financial Wellbeing Strategy Companies are positioned to support their workforce in all areas of financial wellbeing: Prepare Plan Protect Preserve • Financial Education • Retirement • Protection from: • Lifetime Income/ • Budgeting • Home ‒ Loss of income Investments • Social Security
Slide 22: The How of Financial Wellbeing – Global Strategy
The How of Financial Wellbeing – Global Strategy Success Factors Possible Approaches Global framework will set out best practice Gather data on design, financing and principles for local programmes operation of existing programmes Framework should cover design, financing Develop global guidelines fo
Slide 23: The How of Financial Wellbeing – Employee Needs
The How of Financial Wellbeing – Employee Needs Success Factors Possible Approaches Employee needs assessed using a survey Carry out employee survey Survey results identify financial issues, Create suitable KPIs preferred methods of support, and order of Map survey output to potential tools across p
Slide 24: The How of Financial Wellbeing – The Tools
The How of Financial Wellbeing – The Tools Success Factors Possible Approaches A successful Financial Wellbeing Carry out audit of current Tools (Type & Vendor; programmes has a range of elements Date implemented; Reason for implementation; (“tools”) across the 4 P’s. Delivery Mechanism; Cost; KPIs;
Slide 25: Case Studies
04 Case Sudies Aon │Private & Confidential July 2018 24
Slide 26: Global Pharmaceutical company designs Global Financial Wellbeing Initiatives
Global Pharmaceutical company designs Global Financial Wellbeing Initiatives Client How Aon Approach Helped Situation 2004–2013: Move from Create a toolkit of global best 15+ tools defined Defined Benefit to Defined practices from which local Contribution pensions operations can customize FW Applica
Slide 27: Global Financial Services Firm – Understands Employee Needs
Global Financial Services Firm – Understands Employee Needs Aspects of wellbeing that employees most want to improve Top ranked aspect amongst employees in all European countries surveyed except Top wellbeing aspect to improve Second most important wellbeing Third most important wellbeing aspect to
Slide 28: Understanding Employee Needs – by role level
Understanding Employee Needs – by role level Top 3 aspects of wellbeing that employees most want to improve Role Top wellbeing aspect to improve Second most important wellbeing Third most important wellbeing Level aspect to improve aspect to improve 0-1 Physical health Social/lifestyle Progression a
Slide 29: Global Financial Wellbeing – Implementation
Global Financial Wellbeing – Implementation Objective: Improve an individual’s wellbeing and work performance by providing education and tools to help employees achieve financial wellbeing today while Managing day-to-day expenses preparing for financial security tomorrow. Campaigns Saving for the lo
Slide 30: A flavour of the Americas
A flavour of the Americas – Core Benefits: Basic Life, Basic AD&D, Short Term Disability (STD), Long Term Disability (LTD), EAP Canada: Significant changes to retirement 42% working Canadians overall say that they are programs with expansion of the distracted at work because they are worrying about
Slide 31: A flavour of Asia Pacific
A flavour of Asia Pacific China: Smart spenders through China (Beijing, Shanghai, Jiangsu and mobile enabled voluntary personalised benefits at Top 4 Canton) leads the world in student financial discounted rates literacy (source: PISA) Japan: May 2018 DC law amendment requires companies with a DC pl
Slide 32: A flavour of Europe, Middle East and Africa
A flavour of Europe, Middle East and Africa United Kingdom: Significant growth and Denmark, Netherlands, Norway and Sweden interest in financial Top 4 have the highest levels of household debt in education and employer payroll loans the world (as % net income) (source: OECD) Germany: Interest in fin
Slide 33: Closing Remarks & Employer Actions
Closing Remarks & Employer Actions Aon │Private & Confidential July 2018 32
Slide 34: Key actions that multinational organizations can take now
Key actions that multinational organizations can take now 1 Identify existing Financial Programmes around the world (you may find several good examples!) Develop Global Strategy & Framework 2 – Link to broader Wellbeing strategy – Guidelines & philosophy (e.g. financial education/advice; provide sup
Slide 35: Financial Wellbeing – An Employer Point of View
Financial Wellbeing – An Employer Point of View Thank you! Aon Multinational Study – Results Session – Webinar July 10 to July 12, 2018 Prepared by Aon Global Benefits Presentation to Global Benefits Day