EBRI’s 2018 Employer Financial Wellbeing Survey

Employers have offered wellness programs for decades in order to promote healthier habits among workers. Their foray into financial wellness is newer. The Bureau of Consumer Financial Protection (BCFP) began exploring financial wellbeing as a goal of financial education in 2014 with a report documenting nearly 60 hours of open-ended interviews by its research team with adult consumers and financial practitioners. Their research suggested that financial wellbeing can be defined as a state of being wherein one:

Has control over day-to-day, month-to-month finances;
Has the capacity to absorb a financial shock;
Is on track to meet financial goals; and
Has the financial freedom to make the choices that allows one to enjoy life.

In its report, the BCFP concluded, “We need to develop innovative programs and interventions and specifically test them (and our implementation strategies) in terms of their efficacy — their efficacy in supporting the development of the key factors we have identified that may lead to and underlie financial well-being, and their efficacy in improving financial well-being itself.”

The Employee Benefit Research Institute (EBRI) began its exploration of employers’ interest in offering financial wellness initiatives in the spring of 2018. It began with a series of focus groups that asked:

How are employers defining financial wellbeing for their workers?
What are employers doing and not doing in this area?
Why is addressing financial wellbeing on employers’ agendas?
How are employers defining “success” in this area?

While there was little consensus around the definition of financial wellness, many employers in the focus groups agreed in general with the BCFP’s definition: Financial wellbeing is a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow them to enjoy life.

Specifically, employers identified with the notion that it is important for employees to balance current and future financial needs and that future financial security should not come at the expense of financial stability today. For example, employers wanted to know that, when they were automatically enrolling workers into a 401(k) plan, these workers could afford to save for retirement and were not putting themselves into a financially fragile position by doing so.

The focus groups also revealed that financial wellness programs were about more than just increasing workers’ productivity. While some employers were concerned about absenteeism due to financial stress, for example, many were also generally interested in promoting workplace satisfaction.

The clear message from these focus groups was that, while financial wellbeing was of great interest to employers, the programs were typically in their initial stages. Many had engaged only in pilot financial wellness programs for select groups of their worker population. Oft-times, these programs involved one-on-one counseling and were difficult to scale for broader rollout. In terms of measuring the success of these initiatives, the most common measure was utilization (e.g., were all available slots in a workshop taken) or defined contribution (DC) plan benchmarks (participation rates, average balances increase, and investment mix). Success was also measured by surveys that evaluated the program itself — content, understandability to the participants, and engagement of the presentation/material — not whether the individual made a change in their behavior.

EBRI’s 2018 Financial Wellbeing Employer Survey built on these results with online interviews of 250 larger employers. As with the focus groups, these were employers with an expressed interest in financial wellness initiatives for employees. Those with no interest were screened out of the sample. While employers with as few as 500 workers were included in the sample, the vast majority (79 percent) had 1,000 or more employees in their workforce. A wide range of industries is represented in the survey, with the heaviest concentrations in health care and social assistance (15 percent), manufacturing (13 percent), educational services (11 percent), finance and insurance (10 percent), and government (12 percent).

The findings paint an interesting picture of employers who — like those in the focus groups — define both financial wellbeing and the programs that could facilitate wellbeing quite broadly. They face many challenges in implementing these programs, grapple with how to measure the success of the programs, and ultimately grapple with how to make a successful business case for broader implementation of these initiatives.

Specifically, the survey found that:

The largest firms are most likely to offer financial wellness programs: Of companies that were at least interested in providing employees with financial wellness initiatives, 54 percent were offering them to their employees at the time, 12 percent were actively implementing, and 34 percent were interested in financial wellness initiatives. Three-quarters of firms with 10,000 or more employees offered financial wellness initiatives at the time, compared with 49 percent of smaller firms. Those with the highest level of concern about employees’ financial wellbeing were also most likely to offer a program (73 percent).
Financial wellness initiatives tend to be in their infancy: 38 percent of firms considered their initiatives to be in the pilot phase. Another 34 percent described their efforts as periodic campaigns or ad hoc programs.
There are mixed approaches and costs associated with the initiatives: There is little consensus on the approach to financial wellness initiatives. A mix of methods was the most common provider of initiatives. Firms were most likely to be paying for these programs themselves, but costs per employee varied significantly.
Firms offer a mixture of financial wellness offerings: On average, firms offered 4.7 financial wellbeing or debt assistance benefits to their employees. The most common initiatives were employee discount programs, tuition reimbursement, and financial planning education.
Delivery of offerings is often high-touch: When it comes to delivering these benefits, in-person group sessions, email communications, and in-person individual sessions were the most common methods. In-person individual sessions were the most likely method for both personalized financial counseling and credit and debt counseling programs, while in-person group sessions were utilized most often for financial education and incentivization programs.
Human resources professionals are the main motivators: Human resources professionals are the main motivators for these programs. Thirty-nine percent of firms relied on communications from HR to encourage their employees to use the financial wellness initiatives. Additionally, 4 in 5 said that HR will be the champions for implementing financial wellness initiatives.
Employers face a number of challenges in offering financial wellness initiatives: Cost to employer (50 percent), interest among employees (46 percent), and value proposition to employees (40 percent) ranked as the top three considerations that employers stated they use to determine whether to offer financial wellness benefits to their employees.

Success measures range widely: Measures used to evaluate the success of financial wellness initiatives range from specific (improved employee retention) to quite broad (improved overall worker satisfaction). However, with few using metrics or assessments, it may be difficult for employers to accurately evaluate their initiatives.

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This Issue Brief was EBRI’s 2018 Employer Financial Wellbeing Survey Figure 18 Figure 21 Top ReSou ason rc s e for of O th ff e F eriin ng anc Fin ial an W ciell al n W ess elln In eiss tia In tiiv ti eatives Figure 23 Top Considerations Used Figu to r De e 2 termine Whether to Offer for e w in 199 pm re od llbe p fin loy uc a 2 t ing tnc e iv rini o s it ia a y 22 t(l w nd ia . 50 W .3 p te iv tp hil lln he ees e e re c r p a ss c som e rte nt og L tnt bhe e )e r. e a ne v in 20 m te e im fit m s ls e s a p t16 ha , loy of c nd . to e Thi c m rConc ould s w ha ps d adre e or e rfa d e b e ctw w cili r onc wa it ould tn a h 49 p ts m e e Ab r lik ne wue out e c d e llbe ly h hig ra c e b m ing nt o a Empl ut h k of e e qa r uit us b tfor ho sent e eo se b fa of y re m oa e w tehe ili is it e de h m ly s’ se s w . fe dThey fa b Fi w ue it ee h you ne na rt o t fit ha nc fin s. How cnge n 10, eai n a m c rla ia he 00 ny W e l st va 0 e e e c d rrh e s. 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Initiatives ................................... 15 t a t ahe ha g lse o n se s le ?g a e p q ss n rog ua e H rtighe a ha r ra ll te y m n 35, r r int s, b lik ee g lie e r r44 e a lih v s pe t.8 p ood p e dle d t ha in p e w of rit c t h how e offe 25 rnt om p ha rot e ing rd ing tco e st he nt m ude w a eor or lt ah b su nt kfe p rla lo w e e c ne e a te r n d he fit e sa m s t su etb is pc ie tloy f c a in 201 d e c e ss ttie o on. s a of he 6, co rta e he lt e h ligib p m a rnd og pale r rw e a or d m e lln s, w ha it eah 12.9 p ss vnd e p or ult rog w im rould a e am rtces (7 e ly nt us g e 0 fo r a tp rhe p e fa prm le cm e . w nt ili N e it )s w .h e ahow rly ith he ha to lf of am ds ake a those of the authors a M nd ea sh sur ould ing not S be uc asc cess ribedof to tFi hena offnc iceris, t al rW uste elels, or ot ness I he ni r ti spon ati sor ve s of s, EBRI, Employee Current Approach in Offering Financial Wellness Initiatives to 4 Program? In-person individual sessions were the most likely method for both personalized financial counseling and credit and t a su hose gc ec s 55 ? e ss alful – rOffe e 64. a b dus yr ing offe iness ot ri ng he carse or be for a ne ct fit ib vr e s s oa ly uc d im eh rp im le as su m ple ent p mp ie ng le nt m a fin e tion o nt an ac l life ia f t l he w ins ese lln ue rini a ss n t ia cb ete iv ( ne 71 es fit .p s e erc st eim nt) a, te pd a id m or ma et e th rnit an 50 p y/pate errc nit ent y le of av the e (i7 r 3 Benefit Research Institute-Education and Research Fund (EBRI-ERF), or their staffs. Neither EBRI nor EBRI-ERF Please rate your company’s level of concern about employees’ financial wellbeing. What are or would be your top 3 reasons for offering financial wellness initiatives to by Industry Septe Fi m gb ur er e 20 15 1, 0I • ntNo. ernal 3 Ch46 am pion for Financial Wellness Initiatives ............................................................................... 16 Employees Who is or might be the source or provider of financial wellness initiatives? Please November 29, 2018 • No Ple . aW 466 seha de t sc w r e ibe re o yro w ur il l c o be mp yo aur ny ’ts oe p me 3 cro gns enc ide y r fa un tio d ns or e us mp ed lt o o y e de e tha ermi rds ne hi p wa he ssth iste arnc to e o pr ffo eg r ram. The debt ccle ouns ar m ee lin ssa g g pe rog fro ra m m ts, w heshil e foc e in us -p g erroup son g s w roup as t ha sess t, ions whil e w fin ere a nc utiili aze l w de llbe most ing oft wean for s of g fin rea an t cint ial e ere dst uc t ao tio en a mpnd loyers, the employee ps a ercre ent e)ligib , or le le g aa nd l se wrould vice s (4 mak 2e p us ere ce of nt)t.he se bene (n fit =2 s, s 50)ignificantly higher than the 34 percent of those only employees? (n=250) lobbies or takes positions on specific policy proposals. EBRI invites comment on this research. What are the top 3 challenges your company faces or anticipates facing in offering financial In w W hi ho ch ha ofs the bee fn olo lo rw w ing ho w se wa ille y l c s be t aa r y e llo y th ur oa ur pr t a f ima pp inalnc r yy . (n ia and l=2 w s 5 e0 e ll) c ne ond ss a ini ryti ca ha tiv mp es ide ons liv fe orre d? financial wellness benefits (n =7 to 0 y)our employees? (n=250) Introduction On average, what is the annual cost per employee for financial wellness initiatives? Sp inc p Itr og is e ec nt t rifi he aic m va iza rs w e lly for t, ion p e ter he enot tr su y og p su ric v ra e a rm p y lly r s. fo i si in t und ng hteha tir ha tini te :t m iap l st loy ae gre ss. Ma are int nye h re ast d eednga in init gedia only tives int in pe ilot nde fin d a to ncim ialp w rov elln e e the ss p fin rog anrc aim al w s for ellbe sele ing ctof Low Concern (1–6) Moderate concern (7–8) High concern (9–10) intereste d in these W be hine ch fit sta s. te ment most accurately reflects your company’s current approach in offering financial wellness implewellness menting f bene inanc fiits al in we the llne wor ss ini kpla tiati ce? ve s? Plea (Pr se ima select ry n=2 your 50; tS op ecthr ond ee. ary (n n=2 =25 40 5)) Figure 16, Top Consi Wha dt ea rra et t ion he s Use top 3 fd ac t to o rs Dth et ae t r am reine or w W illhe bet ihe mp (n ro =4 t ro ta 3n Offe )t in th r ................................ e measurement of your fina ................................ ncial wellness ........ 17 Firms defining their fina Im np cro iavl ed wel ovleral nes l s wor inke itir asat tiv isfac es a tis o h n olistic are more likely than those offering pilot or periodic (n=134) 54% Case-by-case program Employers have offered wellness programs intended to promote healthy h14% abits among workers for decades. In a 1993 g the roup irSu w s of or gg kes e the rsted . irH w ow C or it e ka v ee ti r rp o , op n as t :ula Lhe or tion. i Lu EBRI cOf a ssu t. -t“riE m vB ee RI ys ,sh ’ s 201 the ow ise ni s, e 8 tip aE ti rvm og ve en e p s rloy a tom m ee s mpl p rloy in Fi o vna y e olv ere s a ns? e cd ia c (n tl We one i=2 ve 5 0 -in t llbe on ) -his ing one aSur rceouns av a erye e .” lin c E le g B a RI a rly nd Iin t ss wue ehe r eB ini d rie iff tfia ic , l p no. ulth ta 466 os e sc s of ale Cost to employer How do employers know whether to be c ini onc tiati evre ne s? d Ple ab ase out se le em ct p yo loy ur e to ep s’ th fin rea e.nc (ni=2 al w 50)ellbeing? To understand 50% this, we asked initiatives to be… Complexity of the programs 44% A mix of methods (e.g., EAP, contracted vendor) 42% ? The largest firms are most likely to offer financial wellness programs: Of companies that were at EB r eportRI’s prepare2 d 0 by1 the 8 E Of?c 28% mp e of Dloy iseRedu ase e ced Pr r e Fi e mv pe lont yeen ion a fina ancn ind al c stress Hial ea 46% lth P W rom eoll tion, be Mc ing Ginnis Su , form rv ere 26% Dey p 48% uty Assistant Secretary for eva b lua roa ting dere rm ollout ploye . e In te s’ fin rm ans cia of l w me ea lln su er ss ing , im 40 the 1p (kle ) osu m r 40 e c3c nt (b) eing ss hard of shi fina pt he lonc anse ial w inite ia lln tiv ee ss s, t prhe og m raos ms, a t cond mm m on eam suera ing surte he w ira su s ut ccili ez sa s. tio They n (Employee Benefit Research Institute, November 29, 2018). 11% Figure 17, Value Proposition and ChaH lle uma nge n rs es ................................ ources .......................................................................... 17 employers the steps they have taken to gauge employees’ financ55% ial wellness needs (Fig 26% ure 5). The 80%most common In-person group sessions 48% least interested in providing employees with financial wellness initiatives, 54 percent were offering them to Motivating and Measuring of Health, docum Im epnt rove ed dLack ot vhe eral o lf e wor stxpe afke f rr es r sat ie ou inc sfac rces e ti o tof n o co61 ord ie nat m ep /mar loy ke etr s, l benefi ar tg s e and sm Redu all, p ced eublic mployee a find nancp ialr st iv ress ate, that43% were providing ( A a e ppproac .g pe ., ar w teo reb e a he ll a des v fin at iling o ab Fin le fin sl aot a ncs ncial iain a l we w lln Wel or ek ss sh fa lne op ir ly ta s b ks e ro na )d or ly , din efin cluding ed cont the ribut nee ion ( ds tDC hat) sh pla ould n b ebnc e hm addarrekss s (pa ed. rThey c ticipation r ite ates, Improved Bem enp e lo fi yt ee s O ret ff ent ere iod n (e.Ig n ., t er low es er t amo work NF n at fo g ina u rc em ral e nc tp d uili rn sast o ay o lee v W e er) r se fu ll nne d ss Offerings Considerations 46% approach reported was examining existing employe Ret e ib rem ene entfit pl/ an re pt rir ove idm erent 11% plan data such as d 33%eferr 47% al rates, average 26% By Lori Lucas, CFA, Employee Benefit Research Institute Improved employee retention Worker satisfaction with financial wellness initiative(s) Copt yhe rig irh et In mploy form eesa a tito tn he : tThi ime s r , 12 ep or pe t ris ce c nt op we yright re aecd tiv be yly t he im p Ele mm ploy enteing, e Beane nd fit 34 Re psea ercr ecnt h I we nst rie t uint tee (rE eB st RI ed ). in It may be A senior executive 21% 19% 40% Co wor m km siuni te he caa tion fr lth pro om m ot hum ion p an rog resour rams a ce ip m rofe ed ss ation ima pls ro wa ving s tthe he num healt bh a er nd onew w ea llb y eting hat of em the ploy ir e erm s e ploy ncou eers a agnd ed reem duc ploy ing ees to Fi num avgeur ra eeg r ous e 18 b, ac C la onsi hnaclle eds inc nge erats in Offe r io ens ase, , inc and rluding ing inv Fie na c st ha nc m Elle m e ian ainge l We t l cm om s in m ix) m lln u. n e iSu ss cata ic o B kc ne ing ene ss fit tw he sa ................................ s a bus lsine o m sse a csu ase retdo bm y asu n................................ a rg ve ey m s t ent ha 42% of t ejvus alua tifyting ed t.................. the he p cros og t rof am t he 18 80% Flexible work arrangements 5.9 Average count of financial 63% Value proposition to Approaches t Imo profin ved Ima p em nc rov pi ed la oyl w em ee p ue lse olln yo ee f e ex uss se isto i np f gex r bog ienefi stinrga t ret sm (suc ire s m hv as ent a r h y ip gl h an w er side contly rib, uta ioc nscording to Wo su rker rvue tiy liz at re iospond n of availab ent le fis, nanrca ial nging wellness fir nom itiati vt es hird-party balances, and loan frequency/amount Lack . N oe f ia ntr elry es t tw amo o-ntg hi em rd ps o loyee f r s espondents (63 percent) had taken th 43%is step. Surveying Fund via voluntary payroll deductions 11% Which statement most accurately reflects your company’s current approach in 1 34% (vs. 54% pilot; 49% periodic) financial wellness initiatives. Three-quartew rs of ellness fib rm ene s w fits,it ou h 10,00 t of 15 0 or meor mp el oy ee m es p aloy s top e e cos offe nsiderar ted ion financial wellness used without Im p pro evred mem issi plon oyee t b o u se ut the o 4 f c A 0 ex it 1 ci(k) a o stn t i n p tion o g r lan act em /ed lp olwe o f fy in ee r the an lo b an c enefi ial s sour o w r tw s eliltn c hes d e rawal sis be n r s)e efiq tsuir vee ndd o.r (sI)mproved workforce manag26% ement for retirement health care, workers’ compensation, and disability costs. The report concluded: “Worksite health promotion has taken use the financial wellness initiatives they made available (39 percent), as shown in Figure 14. The second most ini itse tia lf t— ive c sont — e w nhic t, unde h is o rft ste an b nda or bne ility b tyo tthhe e epm ar ptloy icipa ern . tH s, ow an ed v eernga , ma gny em — ent e spe of tc he ia llp yr e those senta c tion urre /m nta ly te offe rial r— ing not su c w h p her tog her ra tm he s An existing vendor ma Val du e e th pirs o av poai siltab ion le to employees emergency assistance programs to oneo-fon fer- in one g fin sess anciaions l wel. lnH esow s ine itv ia etri, vea s k toe e ym fe pla ot yur eee s? of the majorit40% y of financial wellness e mployees came in second, with nearly half (48 percent) saying they have taken this step. Creating a financial Challenges in making business case to managem (ve sn . 3 t. 8 ( e. pilg ot ., ; 5.0 periodic) to offering financial wellness 10% 17% 26% 56% Paid family/elder In ca -p re er ls eo an v e individual ses Fus n io d n by company 10% 40% Figure 19, Source of the Financial Wellness Initiative ................................................................ 42% ............................. 19 initiatives at the timet, hrc oo ugm h p ana ex re isd (t Lio n w w g34% c pit oln atf h ceo r49 n r,m n =1 p 6e 5;r M co e dnt era tof e consm cerna , nll =1 e 1r 5 , fir High m cs. onceThos rn, n=66e ) with the highest level of concern Increased employee productivity 32% on com inc mr on easi ap ng pro im ac ph orwa tanc s m e on as eat a cront y inc ribut entoiv r ets, w o imhic prov h m eda y he inc altlude h fo rd m isc aoun ny A ts mon ericins anu s. . ran.Wi ce, th th smae ll c ea xpa sh nde bonus d ae cs fo tivitry si cg om nin eg s indiv — beidua lieve l m tha ad t et he a c m ha ange jorit y in t of th heire ir b eeha mv pio loy r.e es w jusould tifying b the e ce oligib st) le or likely make use (v sof . 36%t pi he lot;se 38% pe be riodi ne c)fits. All (vs. 339% 5% pilot; 32% periodic) 38% 33% 33% 28% 26% 17% 10% initiatives is that few are currently considereA d “T holis 2.6 AtA vic er”a g p er co G og unrtL a of m sA s. I teps N ns taktee C na dE , the majority of employers characterized wellbeing score or metric was the least common approach (14 percent) overall. However, among employers with The company itself 26% Report Availability: This report is available on the internet at www.ebri.org about employees’ finan Ac vi aia lab l w le e aftllbe er a cing ertainw pe eriroe d o a f ls em o plm oym ost ent likely to offer a program (73 percent). 10% a n interest and obligation to Low coa nss cere nss the results of to su unM c de h p od rste arr n aog d te e co r ma p nm lcer oys t e nes’ o ne ens edsure tha Letss w lie ke lha yH to iv gh h e a co va e n co cer cle sn t a ar s e a r m not ain ion of what works up, and free credit monitoring. This was noted by 19 percent of respondents. Internal champions and communication Lack of ability/data to quan A d tie fp y ar val tment ue adh dea edd of th 6% e initiat16% ives 22% Healthcare Value proposition to the company 27% 41% these programs as pilot pr39% ograms (38 On I26% l m p in pe e ro r in ved cde ivnt emp idu )al l26% o o s yr es ee p srec ie onr ru siod itmen ic t37% or ad hoc prog 45% ram22% s (32 pe 34% r 29% cent). A16% s Figu 8%re 8 shows, even 10,000 or more employees, greater than a quarter (27 percent) said they have done so, and another 37 percent Figure 20, Who Pays or Might Pay for the Initiatives ................................ (vs. 1.9 pilot; 2.6 periodic) ................................ consideration: 27%.............................. 19 E Polic BRIy ’s m2018 akers a Fina ppn ecair a l We to ha llbe ve ing a role Em p in t loy his er a Su rera v eays w buil ell. For t on t he exa se mrp ele su, ltts w he it IRS h ornli ecne ent int ly e isrsu vieew ds of a pr25 iva0 la te le rgte te r re rm uli png loyers. b fre om st in v uppaerrious ma na set gte ings.” m Ape pn lict at t ioie n p d ro for cess tt o A hir d cet od n erm t rp act ila ne ed c ne e e ed mp w an it lo dh 13 p y am ee o as un sits o te an f r pc c aym e epnt r eo n g te ram ach. (EAP Thos ) e in the educ 24% ation industry (29 percent) or the 9% (vs. 61% pilot; 43% periodic) Manufacturing 30% 48% 30% 14% 27% 36% 24% 18% 12% among employers with a high level of concern, only 27 percent characterized their financial wellness initiatives as planned to take this step. Further, those who were highly concerned about their employees’ financial wellbeing (29 Improved workfoLeg rce al m an anag d/ em or ent reg fo ulat r ret oriy rem hue rd nt les ? Financial wellness initiatives tend to be in their infancy: 38 p 21% ercent of 28%firms considered their initiatives E mployers have offered wellness programs for decades in order to promote healthier 18% habits among workers. Their foray A union or other group of employees 7% 9% A res w spond ith th ing e tfo o ca us p la grn sp ouponso s, the r'se s re wqeue rest e m to pa loy llow ers w a diteh a fine n de c xpress ontribut edion p interle ast n to r in fin eca en iv ce ia l w taxe -a lln de va ss nt ini agte iadt iv steude s font r loan Paper-based materials or worksheets 32% 21% Average annual cost per government (28 percent) were more likely than those in finance to offer monetary incentives or financial rewards (8 Cost to employee 25% Fi “ holis gure ti c 21 .” , Cos Edutc at of ionFinancial 43% Wellness IniLto ia w tiiv 50% ntee rest s ................................ or interest-free lo 39% an 7% ................................ 25% 21% 18% 7% ................................ 7% ..... 20 percent) were significantly more likely than those with moderate (12 percent) or low concern (1 percent) to say they Other third party provider to be in the pilot phase. Another 34 percent 35% described their efforts as pe em riod plo24% yi ec e ic s a mm orep th aaig n $ ns 50 0or ad hoc programs. into financial wellness is newer. The Bureau of Consumer Financial Protection (BCFP) began exploring financial Employers’ foray into financial wellness is more recent. The Bureau of Consumer Financial Protection (BCFP) began 54% e mm ap tcloy hineg e s. cont Thos ribut e ion wits. h no In B 10% int rite arin, estt he we Redu r N ea csc ted ion r ee ma e pl E ne loyee m d ab p out loy sent e m of eism etnt he Sa savm ings Tr ple. W uhil st 16% e( N eE m ST) ploy (e the rs w UK ith a ’s na s fe tionw w aide s 50 , 0 w public ork -e op rst iw on, ere Table of Contents Employee access to services/initiatives percent). A nonprofit or government agency sought 27% (vs. 2% pilot; 4% periodic) 46% 9% Finance 40% 28% 56% 47% 32% 16% 24% 8% 8% have created a financ 48% ial wellbeing score or metric. 5% 6% Online group sessiFu onn sded by PTO 7% 9% 29% 8% 8% wellbeing as a goal of financo ia url e par d tuc nera shtiion in p for a pr20 ogr14 am with a report documenting nearly 60 hours of open-ended interviews exploring financial wellbeing as a goal of financial education in 2014 with a report documenting nearly 60 hours of inc autlude o-enr d olle in td he d e sa fin mepdle c, ont the r ib va ut st ion p majla or n) ity i s t (79 est pie ng rce out nt) ah a “s dide 1,00 car0 ” or sa vm ings ore a ecm count ploye a es a s in th sour eir ce w of ork efo mrecre g. eA nc w y ide cash ra nge that of Introduction .......................................................................................................................................................... 6 Fi Fig rm urs t e h 22 at, d Top esc r Fa ibe Finc an t or t che ial s in Me w irel fin lnesa sa nc ser su ia vir cl w ing es oe ffFi lln ered na A e n ss bnc oy n v piien rni a ol We f dt it o ia r o(rt s iv )g lln d oe o ver n s e ’ t n ss a ment mee s “ In tholis it o ag uia en r tciv t yi c e p ar sp t................................ r nog er ram7% s” are more foc ................................ use7% d on the value of .............. the 21 Impact on employee productivity 9% 24% Differentiator from our competitors 15% Government ? There are mix 24% ed appro 34% aches and c 34% osts assoc 34% iated w17% ith the in 28%itiativ 14% es7% : There is little consensus on the 6% 16% by its research team with adult consum Fune dr ed s oa r nd contrifin buta ed nc byi a col wor pr ke ars ctitioners. The 7% ir research suggested that financial wellbeing open-ended interviews by its research team with adult cn o ee ns dsumers and financial practitioners. Their research suggested When it comes to championing the implementation of financial wellness initiatives, the most commonly cited primary indust would rrie ide s is b e re sipdre e sent a wor edk e in t r’s r he e tsu irerm veeyn, tw ait ch coun thet .he aviest concentrations in health care and social assistance (15 A board member, investor, or shareholder 5% p rograms to employees, are less cost conscious, and are making bigger investments in their financial wellness initiatives Individual telephone sessions 28% 4% Evaluating app the roa O N c te h h to fin er ed ................................ anc45% ial wellness initi 40% ................................ atives. A mix of 28% method ................................ 35% s was the 27% most com 27% m ................................ on prov 24% ider of 11% initiat.............. ives. Firm s 7 Realization of the company’s commitment to community service 73% 7% Other can be defined as a state of being wherein one: <0.5% c t Fi ha ha gur tm fin e p ion 23 anc , wa iMe al w s asu h eu llbe rm ing aing n Suc re csour acn b ess of c ee d s (5 eFi fin na 5 p en de c a r ia c s a l We en tst ), lln afollow te e ss of Ib e ne d iting ib a Ot tyiv h w er ae he s, senior rb e 2% y in y I ndus eou: xectut ryi v ................................ e (21 percent), as sh ................................ own in Figure 15. 22 percent), manufacturing (13 percent), educ Ina clt uion des ca ou l se nselr inv g ic or e ad s (1 vice 1 per4% cent), finance and insurance (10 percent), and (Figure 9). Nearly two-thir Imp ds act (63 on em pe pr lo cye ee nt s’) r et st ira em te en dt p th rep aar t ed the nes v s alue proposition to employees is their top consideration for 23% Figu 18% re 5 were most likely to be 6% paying for these programs themselves, but costs per employee varied significantly. Other In its recent reports, the BCFP concludes: “Financial w 2%ell-being is a state of being wherein a person can fully meet Approaches to Financial Wellness................................ Through mobile apps .......................................................................................... 11 12% 12% Human resources was also cited as t Requ he ired mas os part t c oom f unim on on agreem sec ent ondary champion of these initiatives (26 percent). Ninety government (12 percent) (Figure 1). 3% offering financial wellness initiatives (v Pai s. 36 p d back thro er uc ghe pn ayro t p llilot dedu ;c t38 ions perce 3% nt periodic). Just over a quarter (27 percent) stated None of these Not su 5% re 5% 500-2,499 ? Has control over d 38% ay-to-day, mont 41% h-to-mont 29% h finances; 33% 29% 28% 16% 10% ? Have control over day-to-day, month-to-month finances; Curren M tlye ofa fersuringAct Fi ivna ely imp nc lem ia enl ti nW g ellness Interested in Primary current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow percent of those with 10,000 or more employees cited HR as primary or secondary champions (vs. 78% of those with Financial Wellness $0. 0Offe 0 $ r0 ings .01 to ................................ $5.00 $5.01 to $10.01 to ................................ $20.01 to $50.01 to $10................................ 0.01 to $250.01 to More th................................ an Not sure . 12 cost ?a s aFi m ra m in s off consi er d a er a m W tion ix hettu h( erv r ts. 61 p e he o prf ogfriam’ n er a scn e suc n cial ctes p silot w canell ; be 43 n mea es p se s urr o ed ce ff nt erin per g iod s: ic On ). avera20% ge, firms offered 4.7 financial wellbeing None of these/not sure 6%Ot8% her 1% Other 24% Text communication 7% 2,500-9,999 ? Has the capacity to 42% absorb a fin33% ancial shock35% ; 38% 26% 23% Sec 17% ondary 8% ? Have the capacity to absorb a financial shock; t hem to enjoy life.” By this definition, $10.0t 0he me $2a 0su .00re of $su 50.c 00cess of $100su .00ch init $25 ia 0.t 0i0ves is $5 0 the 0.00ir abili $5t 0y 0. 0t 0o help workers find fewer than 10,000 employees). or debt assistance benefits to their employees. The most common initiatives were employee discount We currently offer financial wellness initiatives Motivating and Measuring .................................................................................................................................... 13 ? Is on tr1a 0c K+ k to mee 39% t financial goa 39% ls; and Do n’t know 41% / not sure 24% 6% 29% 22% 22% 12% ? Are on track to meet your financial goals; and b alance between today’s financial needs and tomorrow’s financial goals. Figure 1 These firms also tended to have fewer than 10,000 workers: 22 percent of employers with 10,000 or more workers All percentages shown are statistically significant. programs, tuition reimbursement, Wa e nd are act fin iva elnc y imp ial p lemla enn tinin ng fig nan e cd ialuc wel at lnion. ess in itiatives What steps has your company taken or does it plan to take to understand your employees’ financial wellness ? Has the financial freedom to make the choices that allows one to enjoy life. ? Have the financial freedom to make the choices that allow you to enjoy life. Value Proposition and Considerations in Offering Financial Wellness Programs ......................................................... 16 described their approach as ad-hoc or perW iod e ar ic e iou ntertes re ted ac ih n fv ins. 9 ancial p we elr ln ces ent s in iof tiatit vhose es with fewer than 10,000. Firms with needs? (n=250) Demographics of Responding Firms periodic initiatives were more likely to cite seminars, workshops, or group sessions (26 percent) and ad-hoc outreach ? Delivery of offerings is often high-touch: When it comes to delivering these benefits, in-person group Source and Cost of Financial Wellness Initiatives .................................................................................................... 18 In its report, the BCFP concluded, “We need to develop innovative programs and interventions and specifically test In its report, the BCFP concluded, “We need to develop innovative programs and interventions and specifically test Figure 22 ( 22 perce sess nt).ions , email comm Stuni eps ca Ttak ions, a en to nd Unde in-pe rs rson indivi tand Empl du oy ale sess es’ F ions inanc we ial re W the el lm ne ost ss c N om eem dson methods. In-person Figure 10 them (and our implementation strategies) in terms of their efficacy — their efficacy in supporting the development of them (and our implementation strategies) in terms of their efficacy — their efficacy in supporting the development of Me asuring Success of the Initiatives ...................................................................................................................... 20 Me S Fin our as anc cur eial ing and Wel SC ucc o lne ste s o ss s f Off Fin of t e anc he ring ial In sitiat Welive lne ss s Initiatives Top Factors in Measuring Financial Wellness Initiatives individual sessions were the most likely method for both personalized financial counseling and credit and debt Total Number of U.S. Employees (n=250) Industry (n=250) the key factors we have identified that may lead to and Fu igu nderre lie 2 fin 0ancial well-being, and their efficacy in improving the key factors we have identifiedFi tha na t m nc ayi a lela d W to ea llnd ness undeIn rliei ti fin a ati ncv ia e l w s e Of ll-b fe eing, red and their efficacy in improving F F Figu igu igur r re e e 1 1 77 2 Figure 4 E Me A m s sh a psu loy ow re en in s us e dis e Fi cdoun g tur o e te v p 19 a rog lua , m rtaost em ts he csu om su ch a m cconly e s for ss , of ecm fi ena ll p ploy nhone ce ia rl w s s, t cie te lln rd ae va ss e l, m ini a ix of nd tiate isour v nt ee s r rc ta a enge in s m —e d su nt frc ;om h tuit a s s io pee n r m cifi p eloy c im (ib e m ur ep a se rss ov m ie st ednt a nc e; m a ep nd p loy rog fin ee ra a n m cs ial Related Benefits Has taken Plan to takeFigurN e o t1 plan 4ning to take Not sure C onclusion .......................................................................................................................................................... 20 counseling p 50 r0 og tor 7a 4m 9 em s, w plohil yeee s in-person group 17% sessions were utilized most often for financial education and Health care and social assistance 15% Which of the following does your company offer to help employees with personal financial well-being itself.” financial well-being itself.” Who Pays or Might Pay for the Initiatives p r ae nd la te nni nt cont ion ng r)e a d tc Eo uc t xe ami q d auit t nv ion, ed e e ndo ex bir ssemi toa ir ns gd em — n (a i p m a lr os s yp ee , r ta he ov bnd en e sour efi dw tov /e ret b ce iina e rr em aof ll w r es nt the a por lr an e ik r e tfin he r sa a m ntc is ost ia fa l cw ctom ion elln m ). eon ss Im ini p fin rtov a ia nc e tiv d ia e ov l w s (e42 e rlln a ll w p ee ss ror c b eke nt ene r) . sa fit W ts offe is he fa n o ctr ion nly ed s — one cor ra e t sou d ing ar s ctehe wa top s Nu Ember stima V of alu ted Fi e Pr n Pr anc op op or ios al tiiW on tion ell of n and ess Wor Ch In kf iall t orce iaeng tivE es es ligib Off le ered Characteristics of Firms Currently Offering or Actively 750 to 999 employees fina 14 ncial challenges? incentivizaE tion p ncou rog rrag amis. n g Employees to Use F iM n an anc ufactui ral ing Wellness Initiati13 ves 63% 16% 18% 4% Figure 8 Value Proposition and Considerations in Offering Financial Wellness Programs data Nearly two-thirds (63 percent) of respondents reported tying their health benefits to a health and m r ce ite sponse ea dsu , it re wa s of of s m fin 72 a on st p c e ia crom l w cent m elln W , only 6 ha e9 p ss t a tre ini he er t ct he e ia re nt t ttiv o ir , p e e as 3 m nd fw e ac nt it 60 to h rp s 3 p la th 9 p en p r ac t e e ar n r ro c e te v o , ide nt r r w e, sr ic p l llosely follow ( e be 33 c t iiv mp pe ely o rrc te ( aFi nt nt g) ie ur n . d Fi th e b r e10 m y m s w r) ee . ad su Iit uc n cont rh 10, ee me d n et r 00 m a os fp 0 o t y loy , oonly ur re m fe ina o fin a r nc e ba out ia e nlm c ia p one l s loy t rein t eess w s (F en o eig re f ur e 1,000 to 2,499 employees 27 Educational services 11 Offers Plans to offer Not planning to offer Not sure The Employee Benefit Research Institute (EBRI) began its exploration of employers’ interest in offering financial The goal of EBRI’s Financial W Im ellbe pling em Ee mn ploy tin erg Sur Fiv n ea y n is t cio ad l eW tere mline ln e wss hatI n the iti ka ey ti fa vc e ts ors are that employers seek to wellness initiatives? (n=250) Cost to we elln mp eloy ss e prr og (50 ra m pe , rA su ce p c nt h p )r , aoach s fo int Su err r vehe ey st ed t aa o lt em m h s O p ong loc yfr ee f e e e sem nin rip n loy gg s or eFi e sn inc (a 46 en nt 48% p ci ie vr a ecs for l e nt W ) , e ta alk nd ling ne va he ss lue aI l tp n 21% hy rioti p aosit c atti ion ion to e vs. es N 24% ine mtp yloy -four ee 6% s (40 Figures t m 22 hose or ). e ?W lik su or e rH k ly ve u e rt y m o s ea d a rte n ioffe sf ly ra es on crt io o ea u m n w c re c ores nt it gh e r profes nc atc he t ye s d fin a fin va ing snc io anc s v ia nia a l w e ls l w hic e a lln ele rlln e th e s or ss ess ini e m ab c te ia cne o a tunt iin v fit e s a s v m s, d o e nd ti e ndo b vim ta r m to p ta rha ro n sv a :n f e gH d eir um m em m es w a nt pn r loy se iteh e sou re vfe ic rw e r ec ts, or st e e ers p nt th ion t raon 2,50 fe ud ie ss e dnt iona for 0 e loa lt s a m hir n r prd loy e e p p ta e he la y ec m s ( e m e w 39 a nt in it h Emp 2l, o5 ye 00 e d tio sc 4 ou ,9 n9 t 9 p rem ogra p m lo s/ yp ee ars tnerships (e.g., cell phones, t15 ravel, Finance and insurance 10 wellness initiatives in the spring of 2018. It began with a ser ies of focus gr 72% oups that asked: 11% 15% a ddress with their financia Ple l w H a o se e wllbe d ex o pl ing ya oiu n o w prr ha mi og t gr yh a ot m u yme o s a u a end n nc w ohow he ura n gsa e t e y he mp ing e lth off ye e ic e “a s vc a ty lo ue us of pr et o y he o po ur se si c ti o o p mp n” rog a to n r y a e ’m s mp fs is ina loy nc eb e ia e s ling or measured. To do so, Who pays or might pay for your financial wellness initiatives? Please select all that entertainment) p ercent) ranked as the top three considerations that employers stated they use to determine whether to offer financial percent offered a defined contribution plan, with 97 percent offering some type of employer su 33 peb r p c si e ed nt rie ce s or vnt er su e c aon s 22 p ch. soli d ea rt cion/ ent)r. eE fin duc anc at ing ion a serv nd icgeov s. e rnment-run organizations were more likely to use a nonprofit or motivators fo 5,0r0 0t he to Ap 9se ,D 9 pr 9 o 9 p o e x em r s iog ma yp olr ur o ta y eee m lc yo s s. w mp ha Thi at npe yr t o ry f cf- e eni n r o tne ar g e pl p o ae f n 12 r e tc mp oe o nt lfo f e yof r e e fis fir na in G m nc o yv s r io a er ur l ne w ment: cle ie olmp ld ne son ss a tat n y e ini , c do lom o tic a al y ti o m o vu r e uni s? fe ed sti er (n c ma al a =2 ttions 5 e0 a ) re fr om 12 HR to encourage Figure 1, Demographics of Responding Firms ................................ wellness initiatives? (n=2 ................................ 50) .......................................... 2 Analyzed other quanth titat e ic vo e mp emp aln oy yee w a ds ato ar will be a a pp mo ly.ng 36% (n y =2 our 50 )top conside18% rations. (n=141) 37% 9% EBRI developed an online survey that was administered to 250 full-time benefits decision makers. All respondents Tuition reimbursement 69% 8% 19% 4% wellnecss ont breibut nefit ion. s to Ju the st ir 1 p eem e lir gp c ibl loy en e te f oe of rs. Va fir na espond nclue ial w pe e rlop nt lne s offe osit ss be ion ne re fd itts o no a tnd he r h e c a tom ir ve e m o p ra w en n oy tul b rd a elnk ne ikee fit lyd ma s t four o kee t us h, m ep w oloy fit th h 27 p e ee se s. ercent stating that as a 10,000 to 24,999 employees 4 governmtehe ntir a e gm enc ploy y Fi rp m eae sr s t ctu ne ro ren r us c tlom ye otfp he feri ar n e fi gd na o t rnc o acot ita ivl w he elyr e im indus lln pe lem sst en rini ie tin s tia g . t fiiv na ens. A cia N l et d w:d el alit lln iona o es ths er in lly iti, at4 ives in a 5 re sa mid or e th lik a el t yH tR w han t 39 ill ho b se e the champions ? How are employers defining financial wellbeing for their workers? Improved overall worker satisfaction 39% How do you or might you offer your financial wellness initiatives? (n=250) worked at companies with at least 500 employees that were at least interested in offering financial wellness programs. benefits? (n=250) Financial planning education, seminars or webinars 60% 20% 17% Employees value benefits For A top bout h consi e a al tq h dua ecra ratrte e ion r c(om 28 (Fi pp gae ur nie rc ee s, i 16 nt) H ) m . el of p I dn d r em t ov hose pr e lo ill d ying ee esu m focd rp i uv n e loy se t e g er y rp oe es e u ed e p tre s , us sa de im id e n fp of it nloy he ae nc y xis e i a roffe s l t 36% w ing d el er lfin n r e es e m e t sid e r in e r“ ig m tv ie aa e tnc lue int ves y p 17% fu p tl oa r nds op b ns e… osit sor cor i on” e em d 30% pttloy he o e e highe m 40% ep ha loy rst d e sh eas or s t ip he a tshe si 6% m s e tca a om n su ce p re . a ny of Figure 2, Current Ap2p 5r ,0 o 0a 0 c oh i r mo n O re emp ffN eo lr on ing ye eesFinanci1a tl We o 4 offlln eri12 e ngss s Initiativ5 e ts t o 7o ofE fem rinp gsloyees ................................ 8 or more ..................... 7 for implementing financial wellness initiatives. ? What are employers doing Red a und ced not empl od yoing ee finan in t cial his stres a srea? 38% Communication from HR 39% su H Mor ow ccee e ss v tha e rof , n two th fin ese a- nc thir viRet a ar l w dy us ( r nw e o68 lln ide n in e Pp v ely ss es re s, otr na m inc ini clen e ized nt tluding tia ( f) i ina n t iv cof nc lue id als. Fo ir n ce c o guns spond a ab se el sr en ing -e by t , ee d ce ouc - achi int sc m, a a ng s st se t p ,ion a er orf p a pl ot rr an man e og ni nd d ng r cta eha m ,m a ts ( nuf cur 14 a r e cptnt e urr c or ing, ent pr )ro , espe na duc tc ur etd ia v l d e e m fin ispaa loy st nc eeira e fun l w fine d alln s (1 nce ia ss 1 p l st ini e re t ric ss aet nt iv sc e )or , s a ed re t he or as : employees valuing the benefits provided (30 percent); the compa 47% ny receiving som 15% e sort of 33% return o 6% n investment, Average 25% ? Why is addressing financial wellbeing Eon mploe yer m -p pai loy d ers’ agendas? 68% Worker satisfaction with financial wellness initiat 7% ive(s) 33% Conducted a financial wellness needs assessment 26% 9% 23% 41% 10% productivity) Evaluating the Need Figure 3, Levels of CPi on lotc F p ie r rm o rn grD am A eb mo out gra E ph m Pe ic rp s ioloy dic e camp es’ aFi ignna s/ad H ne c ha ia olc th l W Bee ne lln fH ie ts oss l iO st ................................ f ic f e pr re od gram One-tB ime ene inf................................ iitts iat O ive ffered Other .............. 8 inc ha highe would rluding d ? sh st b ip . eE loa re m em d p ns uc plo loy e fy rd om ers fa e r a-b pd sent aeid fin c e (ee Fi e a dg is n ur c m ont u e , m or 20 rber ibut im ). Tha p of ch ion p rov te linc d aa ns ll p re e en ( a r1 for se g 1 p es d m e ta in o rnc c85 e off e nt or p )erin , e a p rcnd re od g ntfun f uc of in tid v a ts f hose it ny c r ial w om (25 w v it polunt ell h era cn ehigh es n atr)y s; in p or le av it ya e riati o l o pll d osit f c ve es onc iv duc : e C e c tr ions ost on. st /be A t o ( b11 ou e ne m tp f p it e aloy rtchir eent rd ) . Basic money management tools, such as budgeting tools or calculators Monetary incentives/financial rewards (e.g., discounts on insurance, 47% 18% 30% 5% ? How are employers defining Imp “su roc vc ed e s em s” plin t oyeehis reten atr io e na? 33% All firms 6% 44% 35% 15% 19% 4.7 Cost/benefit analysis 16% small cash bonuses for signing up, free cred6 it 5 % mo H n iig th o- rd in eg d )uctible health plan 71% Supplemental life Crea7 t6 ed % a 10 fi,0 nan 00c ior al m wel or lb e ei en m gp s loy cor ee es or metric H ( The 34 ow p ot d eo he rDef ce ernt m cp a )ini t loy st eg a t e or tion of r es d y d g te he etne eir rm rv Fin ae in lly ne d c anc w or onsi he doe tsihe tal ed s or r tWel of he wy rould e sh sponse lne ould offe ss s t offe r 14% In tha he r itiat t t fin he em a se nc eive rg p ia 22% e rl w og nc sry ea by t lln fun me s? ss d he The p ini rog tia B su rta ur iv rm vee s a e y aau of s p st r 55% ea a a rrtvtea d of il C a bb ty o he le a ns , ir sb k ov ing ut um ew re a it e m ll se h no 10% r p loy rv c e ic le re s t a s, ro a nalysis (1 (50 6 p pe er rc ce en nt t) ) , of intte he re s ptr og am ra ong ms in q empue loy st eion es (4 (Fi 6 p gur er ec e 17 nt ))., and value proposition to employees (40 percent) ranked Bank-at-work partnership with a bank or credit union 37% 7% 51% 5% Impr (o vsv . ed 49% em lessp tha lon yee 10, 0u 0s 0e ) of existing retirement plans 28% (vs. 55% interested) with HSA Figure 4, Characteristics of Fi Alrlm firs msCurrently Offering or Actively Implementing Financial Wellness Initiatives ................. 8 38% 32% 16% 12% Vendor offers as E p mp art lo o yfees ov er utal ililz s e ean rvid ces en (g sag uce h wi as trh et tih re emen prog trams rank on Fin a sc anc ale of ial 1 –P 10 ro the te irc le tion vel o:f c oncern about their employees’ financ 15% ial wellbeing (Figure 3). Those scoring 1–6 a su pc ph a roas r ch g a es t tiiv rhe eem n e t( op nt Fig p tu h la rre e n r e 11 e cc ) onsi .o rdd ke er ea pting. ions Thi thas inc t emrp eloy aseed r s st t (vo s. 4a 7a %b t ie nt out d eres t t he ed ha ) y lf o usf fir e to md s in t eterhe mine he w alt he hcta he rer a to nd offe edruc fin ata ion fie ncial w lde slln tha ess t While there was little consensus around the definition of financial wellness, many employers in the focus groups agreed AboutF iE rm B s5R iz 9e %I’s Leve lFin of conanc cern aial bout Wellbeing Employer Sur 34%vey 42% Legal services Worker utilization E om f av ergai enc lab y l fe und fin /E an mpl cio al y ee w el ha ln rds es hi sp in as it si is ata tinc ves e 28% 10% 26% 53% 8% Internal champions (such as local managers) plan recordkeeping) 13% E C m opnclus loyers not ion ed that they face many challenges in offering financial well 19% ness initiatives. These included complexity of •Note: “Other” category not included. employees’ financial wellbeing 70% Have health benefits tied to (vs. 19% interested) c witeerd e trhe ate ird p a rs ha ogravm ing s aa s b low eing levpeal o id f c thr onc oug er h th n. Tho e ov se ersc all se orinrg vi c 9e –s t 10he wir e rv ee r ndo ater d offe as h rs. av ing Nea a rl y high half ( lev 45 el o pe f c rconc ent) e rrn. epA or m ted ong benefits to their employees. in general with the BCFP’s definition: Financial wellbeing is a state of being wherein a person can fully meet current and Improve employee retention and recruitment 500–2,499 employees 7% 45% 11% 37% 10% 4.4 Increased employee productivity Figure 5, Measuring Financial Wellness ................................................................ 24%................................................... 9 PersC oo nampa lized cn re y di ’s t o c rro a debt nc nke e m d ran n 8– age a 10 bo men ut t e compl unselo ing ye , ce os’ achi fi ng na onc r pli an ani l we ng llbeing 25% 17% 50% 8% health and wellness program Despite the fact that relatively few organizations said they offer holistic financia2l w 0% e Col llbe legeing savip ngrs og accrou am nts, many offered a programs (4 4 percent), lack of staff resources to coordinate and/or market the benefits of the programs (43 percent), fir Fina ms w ncia itl Ih a nfor wen llbe y m le aing tv ion fo el o haf int s b r this e ecrom e rst ee pin fin or som t w a ea nc ts c hin iaolle l w g of e cllbe ta e dho ing frtom -bput r og at o15 rn a- m is m su s, inea ut b in t e ou onlin he t one w eor -su qkua p rv la retcy ee r. w (Thi it 26 h 250 f rp ty e rp ce eull rnt ce -)tnt im w e of er eb w e ror a ne tk efit e dr s s as b rep eor ing t t hat financial wellness initi (va s.t 3i4v %e int s a eresr ted e) or would be solely funded by the employer, while 9 percent stated such initiatives ongoing financial obligations, can feel secure in their fin (va s. n 49c % ia inter l fu ested tu ) re, and is able to make choices that allow them to (vs. 9% interested) Incentives or gamification to encourage non-retirement savings and Improved employee recruitment 18% Communication from upper management 13% Employee satisfaction 9% 2,500–9,999 employees 17% 14% 56% 14% 6% 44% 33% 17% 4.8 p laa ctkc hw ? of o int rSu ke r of c ec snu es t am s m m e orng ous eae s m u ini rpes tloy iat r iv ea e en s s t gre w e o ca ess iv id ing ist ely et: m he Me p loy ini asu te ia erts w e ivs us es ith th (e 43 d te p o ir e e rfin c ve aa nt lu nc a ), tia e cl w h the alle e llbe su nge cing, cs in ma ess of debfin tk, ing a and nc aia n e ot l w he ffe e rlln cpte iv erss e sona b ini us tl f iine aina tiss ve n s c cia ase l Low (1–6) 46% 26% 9% 14% 4% w orrying Fina ab nout cial w finealln nc 51e % ess s De a ini scr t iw t bie a pr or w t udent ior k v. e k -s w A fliina fnd, enc be ia alr l a e m acti n ce d a ons ny e fin ta ken im edp or in t tahe nt su fac rv to erys w as inc ere luding correla st teude d wnt ith th deb is t r w eor duc ryting. ion p For rog erxa am m s, ple, nearly w highly ould c solely on decceis rb ne ion ma e d fun ab dk out eedr s b the c yond e irm e uc pm loy tp eloy d e ein July s. ee s’ fin 20 anc 18 ia . lA w ll r ellbe espond ing. e Ant not s w he or r k qeua d ratte r c o (m 28p a pnie ercs w entit ) h wa etr ele ra ast te d 50 a0 s having a low Employee-paid Fi enj gur oye lif 6, e.Top Reasons for Offering Financial Wellness Initiati ves ................................ 20% 73% Paid m ................................ aternity/paternity ............. 10 Improved employee use of existing employee benefits 17% as very good or excellent challenges (Figure 121 )0 . ,0On 00 oa r mo verrea Pag yre ol, l ad re van spond ce loans e thrnt oug s offe h the emr ple od yer 4.7 init 12% i 4% atives. Large employ 78%ers offered more 6% than small to manag ra enge ment fr to om j us spe tifc yifi tc he ( im cost prov of etdhe I ne b m es ini p t t iloy nia ter te iv es ee t o s rfe em (t42 ep nt l op ion) yee er sc etnt o q ),ui atnd e b la roa ckd of (im ab pili ro ty v ea dn ov d/or lee ar v a edll w ataor to keqrua santtisf ifya c the tion) va . lue help with managing credit card loans, budgeting tools, a nd fin 7% ancial counseling to help employees t le hr ve ee l o qf c ua eonc m rte pr e loy s ( rn. e 71 eThe s t pe ha rrc e te sw nt t e ()4 r e of 6 a p tthos e le rca ee snt tw ) int ho weersa reest id re ad d te e in offe d b ta w s a bs a reing ing mfin m ajor od anc e pirra a ob lt e w le ly em lln c onc w ess or e rp rie ne rog dd a r b ( asc m out or s. ing fin A taot 7 nc – a8) e l s a of . N t25 ot w or p su ekr r, c pe c riom nt singly, parefdir ms (vs. 32% interested) 39% 32% 27% 5.5 43% (vs. 56% interested) Mem oder plat oy e e( es 7–8) Redu Pe ced er - em to-p plee oyr ee 38% co ab mmu senn tee icat isim on 14% 36% 15% 10% 7% There e ad mdpeloy d wa of erH s (5 s a tow he w .5 e ini vide e a tia rnd , trw ia v4.4 on nge it eh fe s (4 in c 1 p wa us ost veering rc a e cg nt ite m e) ,d e , r te a for rspe s sh ics o fin cow tra i v n an in e s cly sess ia)l w . Fi C m e g om lln u er nt e p e s, ss a18 nie it ini . s t m tOnly ia a ha t yi v tb e5 p sc es d o (e Fi iff re rg c ic de ur ult nt high e for c 21 itin t e ) e . dm Four no ep rm lo c s of y ha in t erlle s t etnge n (43 he o ir as fa c le c ur p ve c ea e rl o tc d e e ly f c in offe nt e ) on vea c m lu erp ring a n a lo tey b e tth he r out s ese ir Specifically, employ Se horrs id t-terme lo nt ani sfied throug h w pa it yrh th oll deduc e not tion, thr ion th ough a a thitr d-p it ar is ty important for employees to balance current and future Fi wit gur h jus e b 7, te t9 p E te st re i m m rca a etna nt ed g 6 of e P 5% rttop he D ho eor scr ir se t ib m io e w o n o eho m ne pf ly oy sa W . eid eor s ad k s fo e ve br rt yc e w a Es not ligible a ................................ problem 12% . Mor 6%e than ha ................................ lf (55 p 75% ercent) of tho .............................. se who 7% were not 10 with high conc of respond ern we ent rs d e m rop ore p e lik de out ly t o of btehe offe surring vey fin as a an cria esu l w lte of llne the ss ir ini ctom iativ pa eny s (’7 s l 3 p ace kr of cent in)t.e rThos est in offe e with low ring to moderate Part of overall benefits 22% Adoption 4% Differentiator from our competitors 11% or extremely satisfied with r ee m pp or loy ted ee ts’ hefin aa nnu ncia al cos l wellbe t peing r em offe ploy ree de m of or c eur tha ren n th t fin oa se ncw iait l h low welln ele ss v e ini lst of iativ conc es a es $50 rn (6.5 ora le nd ss3.9 on . Abouta v ae trh air gd e ,( 30 percent) initiatives. iniSi tia x in tive Cts. o empa n wn it yh low ’s conc e cronc n abo erut n e ampl round oye efin s’ fa ina nc nc ia il w al we ellbe llbeing ing said lack of inte assi ress tatn a ce/ m re ong imbu e rsem mp eloy nt ees is a challenge. financial needs and that future financial security should not c ome at the expense of financial stability today. For c conc onfide ern le nt fin a va b en ou ls c ia w t l w liv ering e e lln aEb m c eout eo ss rgm e nc H p fo e i y g rq sog h r avi tua (a 9 ng r – b a lly s 10) ly ve m hi li s. in ck le/ er acly e cot unt ir to e thr m offe 27% oe ugnt h r pa w t yrhe oe llr deduc Ot e ini hw er ttiior a ontriv ieed s a (46 bout 33% pe fin rce ant nc e as a nd t47 w or pe kr c 27% ve s. ju nt, st re spe 7 pc etric 11% ve ent ly) . of Htow hose evew r, ho 2% 11% 9% 73% 8% benefits Improved workforce management for retirement (vs. 11% interested) Non-monetary incentives (e.g., points, badges, recognition) 4% 10% Make company an employer of choice and improve reputation 3% Figure 8, Approach to O 2 ffering Financial Wellness Initiatives ................................................................................... 11 (vs. 45% interested) 1 r re espe portced tiv e cly ost ).s p er employee of more than $50. One in five firms who defined their financial wellness programs as example, employers wantLo ed w (t 1o –6)know 6% that, when they 55% were automatically enrolling 32% workers into 7%a 401( 3k .9) plan, these were very confident. According to the Retirement Confidence Surve 22% y, nearly 2 in 3 workers called debt a major or A ms sh odeow ratn in ely cFi on gc ur er ene 6, th d em e p to loy p e re rs w asons ere g m ivor en for e lik eof lyfe to ring be fa ina ctinc veia lyl w ime plln lem ess ent ini ing tiasu tivc eh ini s we tia ret:iv im es (1 prov 8 p ede r ov ceent ra)ll w com orp ke ar r ed Debt management services (e.g., negotiated debt repayment) 11% 7% 70% 12% Realization of commitment to community service 4% 3 Company’s current approach to offering financial wellness initiatives “holistic”Re ha spond d an a ent vesr aw ge er e cos retq of uirm ed or te o tha havn $50 e at le 0 p ast e rm eod mp eloy rate e einf . H lue ow nc ev ee on r, at he fulir l q cua om rtpearny (26 ’s e pm erpcloy ente)e s b ae idne the fits y do not Management of human capital 1% workers could afford to save for retirement and were not putting themselves into a financially fragile position by doing m sa wit inor tih sf ta hose c ptrion (54 oble wm ith low ap nd erc m le ent or ve )els , t rh o ea f c dn 4 uc onc ed in 10 sa e e rm n (6 p ploy ide e e ritc ’e fin s ne nta)nc . ga ia tiv l st ely re iss m p (a 48 ct ing perc the enir t) , aa bnd ilityi m to prsov ave ed for em rp eloy tireem e ernt et.ent Mor ion (e eov.g er., , w low heen r More than half of those surveyed (54 percent) said they currently offer financial wellness initiatives, with a third noting Moderate S( tud 7–ent 8) loan8% repayment subsidies (employe 49% r-paid) 11% 13% 34% 68% 10% 4 8% .1 Other Figure 9, Who Considers Their Financial Wellness Initiatives a H 2% olistic Program? ...................................................... 12 While 42 percent reported delivering their financial wellness programs via email, often these programs were delivered program and financial wellness offerings. Additionally, they were required to hold an executive, officer, know the annual cost Of p fee rir n ge om r act ploy ivele y e of their financial wellness initiatives. so. Not sure 5% workforce turnover), 47 percent. Midsized employers — those with 2,500 to 9,999 employees — were the most likely to Other that they were •N oonly te: “Othe r“ ” int categoe ry rne ot s int cle udd ed” . in financial w 30% ellness initiatives and 5% 34% were not actively offe 21% ring them 15% (Figure 2). Student loan debt consolidation/refinancing services 10% 7% 74% 8% implementing in a high-touch way, such as in-person group sessions (48 percent) or in-person individual sessions (40 percent), as High (9–10) 24% 41% 32% 6.5 Beyond le orv e m l o anf c agonc er p eosit rn, io otn in her fa hum ct or as a n rs esoc sour iacte es, c d wom ith paecns tua atlly io n, offe orr ing finaor nc e a.c t ively implementing financial wellness say they offer initiative Fe s wte o r tim hanp 1r0ov % e their w 1or 1%k te o r 2s 5’ % overall sa 26 t i % sf ta o c 50 tio % n (67 pe5r1c % e o n rt h )i. g hIer n contrastN , ola t sr ug ree employers Figure 10, Financial Wellness Initiatives Offered ..................................................................................................... 13 2 Not sure 3% Don’t know / not sure 7% shown in Figure 13. Despite the proliferation of fintech financial wellness solutions, mobile apps were not a common Craig Copeland. “Perceived Helpfulness of Financial Well-being Programs: Results From the 2017 and 2018 Retirement initiatives — vs. merely expr Intere esss ted ing in an interest in them 52% — included (Figure 4): 29% 8% 6% 5% (>10,000 employees) were most likely to cite increased employee productivity (37 percent) and being a differentiator EBRI would like to thank our Financial Wellbeing Research Center Partners for their support on this Confidenc Neot Seurve thay ts p .”e EB rceRnt I a Is gse ue s in t Brie he f, no tab . le 457 s a(nd Emp chloy art es m e Be ane y no fit tR teot se aal to 1 rch Ins 00tit dut ue e ,t Aug o round 20, ing 2018 and/or ). missing d elivery mechanism, with only 12 percent of respondents reporting this delivery approach. Not surprisingly, larger All percentages shown are statistically significant. None / N/A 4% Figure 11, Emergency Fund or Employee Hardship Assistance Programs .................................................................... 14 3 1 4 from their competitors (27 percent). survey: Financial Finesse, HealthEquity, International Foundation of Employee Benefit Plans, J.P. EBRI Issue Brief is registered in the U.S. Patent and Trademark Office. ISSN: 0887 ?137X/90 0887 ?137X/90 $ .50+.50 R Emp Cra on ig loy Z. Cop Go ee e e Be la tznd n el1 e,fit “ aS nd R tud e sR e eo a nt na rc L h ld o Ins a Jn . Oz tit De ute mink bt: aTre nd ow n s Mat d ki. s he a 2008. nd w Imp Gr “e Th e linw ce a tH a ion e ld a slth & ,” As EB an sR d o I cCos ia Ists etue s Be . 20 Bri ne 18 e ?ts f, R no e otire f . W 453 m ork e n ( Emp S t ite Con loy Hfid ee ae e lth nc B-e e P ne ro Surv mo fit R e tion y e.s e W a Pa rc ro sh hing grams ton, .” employec rs atwe egor reie m s.uc h more likely than smaller employers to favor email delivery (68 percent and 55 percent, © 2018, Employee Benefit Research Institute ?Education and Research Fund. All rights reserved. Ann Ins DC:tit u. Emp ute Re ,Mor loy vJ.ul P ey g ub e a 9, B n, lie c2018 ne Me He fit a r c ). lth R e e r , s 29: eMe arc 3 th L 03 ife, Ins –23 tit P.rute inc,ipa 2018 l, P.r udential, T. Rowe Price, and Voya Financial. Figure 12, Number of Financial We llness Initiatives Offered........................................................................................ 14 e e A e e e e e e e e e e e e e e e e e e eb b b b b b b b b b b b b b b b b b b b brr r r r r r r r r r r r r r r r r r r r re i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i.s o o o o o o o o o o o o o o o o o o o o oe r r r r r r r r r r r r r r r r r r r r rg g g g g g g g g g g g g g g g g g g g g a rIIIIIIIIIIIIIIIIIIIIIc s s s s s s s s s s s s s s s s s s s s sh s s s s s s s s s s s s s s s s s s s s s u u u u u u u u u u u u u u u u u u u u u re e e e e e e e e e e e e e e e e e e e e ep B B B B B B B B B B B B B B B B B B B B B or r r r r r r r r r r r r r r r r r r r rrief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief t fr o• • • • • • • • • • • • • • • • • • • • •m N N N N N N N N N N N N N N N N N N N N N th o o o o o o o o o o o o o o o o o o o o oe v v v v v v v v v v v v v v v v v v v v ve e e e e e e e e e e e e e e e e e e e e E m m m m m m m m m m m m m m m m m m m m m Bb b b b b b b b b b b b b b b b b b b b b R e e e e e e e e e e e e e e e e e e e e eIr r r r r r r r r r r r r r r r r r r r r E 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2d 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9u ,,,,,,,,,,,,,,,,,,,,, c 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0t1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ion 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 • • • • • • • • • • • • • • • • • • • • •a N N N N N N N N N N N N N N N N N N N N N nd o o o o o o o o o o o o o o o o o o o o o .....................R 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4e 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6s6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 e arch Fund © 2018 Employee Benefit Research Institute 18 12 10 13 17 11 15 21 16 22 20 14 19 2 7 5 4 3 6 9 8