First, some background

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1 Selecting a Financial Wellness Service Provider Presented by: Douglas G. Prince, CPA, AIF, PRP Chief Executive Officer ProCourse Fiduciary Advisors, LLC DPrince@ProCourseAdv.com First, some background ProCourse is independent advisory firm We are dedicated to working with Corporate Retirement Plans We do not provide Financial Wellness Education We assist our clients in searching for and hiring the right providers that align with their objectives 1

2 Today s Session Define Goals & Objectives Discuss Provider Variations Organize an Approach Measure and Evaluate Success What is Financial Wellness? 2

3 Finding the Right Mix Companies have a direct effect on the financial well-being of their employees through compensation, benefits, and initiatives around financial education Financial Stressors Financial Attitude Financial Literacy Financial Behavior Financial Situation Source: Boston College and Center for Work & Family, The MetLife Study of Financial Wellness Across the Globe How Financially Literate is Your Workforce? % of people who scored good or excellent on financial literacy test: Source: Boston College and Center for Work & Family, The MetLife Study of Financial Wellness Across the Globe 3

4 Why Offer Financial Wellness? What aspects of your workplace are MOST negatively affected when employees face personal financial challenges? 0% 10% 20% 30% 40% 50% Ability to Focus Employee Stress Employee Productivity Employee Absenteeism Employee Morale Employee Health Working Relationships Other 26% 47% 46% Source: SHRM Research Spotlight: Financial Education Initiatives in the Workplace, AP-AOL Health Poll: Debt Stress: The Toll Owing Money Takes on the Body, Financial Wellness in the Workplace: Oct. 1, 2013 Why Offer Financial Wellness? Tool for Attraction & Retention Reduce HR Expenses from advances, loans, etc. Growing wages Gray ceiling Manage liability risks ERISA Section 404(c) sufficient information Source: International Foundation of Employee Benefit Plans Financial Education for Today s Workforce: 2014 Survey Results 4

5 Why Offer Financial Wellness? Percentage of Employers who believe providing financial wellness tools leads to 76% 66% 65% 55% More satisfied employees More loyal employees More engaged employees Greater productivity Source: Bank of America Merrill Lynch Retirement and Benefit Plan Services Workplace Insights: Workplace Benefits Report, December 2013 Types of Financial Education Retirement Planning EAP Program Financial Investment Planning Medical/Health Care Cost Planning General Budgeting Advice Privacy, Security and Fraud Education Planning Credit Restoration Home Buying Other 0% 20% 40% 60% 80% Source: SHRM Executive Summary: Financial Wellness in the Workplace 5

6 Education by Generations What topic is the most interesting to the generations most likely to participate in financial education offerings at your organization? 77% Baby Boomers Gen X Millineals 44% 31% Source: SHRM Executive Summary: Financial Wellness in the Workplace Methods of Education How organizations provide financial education to employees: 70% 60% 50% 40% 30% 20% 10% 0% Source: SHRM Executive Summary: Financial Wellness in the Workplace 6

7 Program Phases Increase Retirement Plan Outcomes Cost Technology Based Cost Full Integration No Cost Wellness Education Only Cost Technology and Personal Interaction Case Study #1 Background: Manufacturing organization with 1,000 employees Program: Hired Retirement Plan Advice Provider Results: Increase participation to 97% Increase average deferral rate to over 6% Increase Retirement Plan Outcomes 7

8 Case Study #2 Background: Healthcare organization with 1,200 Employees Wanted to provide financial education to employees Program: Hired a local credit union: Conducted meetings at each of their 15 locations Segmented sessions by topic Created a video archive Results: No measurable goals added employee service Objectives of Credit Union No Cost Wellness Education Case Study #3 Background: Health Care organization with 500 employees Program: Employee completed Dave Ramsey Course Conducted workshops internally Cost Technology Cost Personal Interaction 8

9 Case Study #4: Program: EMC Corporation Focused Seminars One-on-One Counseling WealthLink - Individualized site - Personalized & action-based tools Purpose: Attraction and retention Employer of Choice Financial stability = productivity - Increase financial acumen Understand and optimize EMC compensation and benefits The Starting Point: Benchmarked wellness to other companies Surveyed employees to identify needs based on generations Full Integration Source: Boston College and Center for Work & Family, The MetLife Study of Financial Wellness Across the Globe Case Study #4: Results: 50% have participated in WealthLink WealthLink users: Did not scale back 401(k) Contributions (vs. 7% of non-users) 38% increase HSA Contributions (no change for non-users) 32% increase in NQDC participation (vs. 2% of non-users) Differentiators: WealthLink considers individuals objectives, time horizon, risk tolerance and risk profile Making it portable employees can bring to next employer 3 Views Employee Employer discuss during annual reviews, shows value of EMC Recruiter full value of working with EMC Full Integration Source: Boston College and Center for Work & Family, The MetLife Study of Financial Wellness Across the Globe 9

10 Where do I start? 1. Establish goals and objectives 2. Document your intended outcome 3. Identify potential providers 4. Develop a timeline 5. Distribute the RFP 6. Review 7. Interview finalists 8. Select and implement 9. Monitor and review 1. Define Goals & Objectives Why Now? Responsibility Gray Ceiling Increase Productivity What is Your Budget? Time Money Resources What is the Goal? Retirement Readiness Reduced Stress Loyalty How Will You Measure Success? Surveys Savings Rates Productivity 10

11 2. Document Intended Outcome Increase participation by % by 2016 Reduce health costs by % by year 2030 Improve Employee Satisfaction Numbers by % Increase Productivity by % Increase participation and deferrals in 401(k) Plan to % Increase Financial Wellness Score from to 3. Identify Potential Providers Types of Providers In-house staff No-cost to Employer Cost Technology Driven Cost Face to Face Recordkeeper Investment Manager Financial Planners EAP Pension Counselors Banks Community Agency Actuaries 11

12 Understanding Their Motivation What is the value of FREE? Consider potential Conflicts of Interest Rollovers from Qualified Plans Desire to work High Net Worth individuals Utilization of other existing products Independent/Unbiased Licensing RIA Broker Other ASK Is this in the best interest of our employees? 4. Develop a Timeline First 30 Days Next 30 Days Next 30 Days Next 30 Days Every 90 Days Establish Committee Discuss: Goals Concerns Budget Desired Outcomes Potential Providers Distribute RFP RFP April to May Provider Candidates Receipt and Analyiss of Provider Search Proposal Select Finalists Interview Provider Finalists Fee Negotiation Implementation Plan Education Meetings Plan Communication Efforts Monitor & Review Progress vs. Anticipated results Modify as necessary 12

13 5. Distribute the RFP Several options for online providers that can help with the process Paper still works 6. Review Proposals Create a statement of objectives Identify 6 critical questions that can help you compare vendors Examples: Describe ways in which you have helped decrease health care costs. Please provide cost savings examples. Describe ways that you measure employee productivity improvements. Please provide examples of actual measurements from your clients. 13

14 7. Interview Finalists Create a specific agenda and ask each of them to follow Have them solve a problem for you Make sure your Day-to-Day contact is present in the meeting Have them provide targets goals for you Make them walk through the implementation process and plans for ongoing support 8. Select & Implement Review contract Think of ways to avoid other problems: If they are after rollovers: Have provider distribute rollover information Distribute Disclaimer to employees 14

15 9. Monitor & Review Set up a committee to review performance of provider What are your measurable goals Obtain feedback from employees Your Objective Monitor & Review Attract & Retain Employees Increase Productivity Stress Reduction Employee Turnover Absenteeism/ Time & Output Measurement Medical Expenses Retirement Readiness Savings Rates Program Awareness Participation Final Thoughts 1. There are many different programs and providers 2. Define your goals first 3. Understand provider motivation 4. Protect yourself 5. Keep up the good work of helping your employees 15

16 Disclosures ProCourse Fiduciary Advisors, LLC ( ProCourse ) is an SEC-registered investment adviser located in Indianapolis, Indiana. ProCourse and its representatives are in compliance with the current registration and notice filing requirements imposed upon SEC-registered investment advisers by those states in which ProCourse maintains clients. ProCourse may only transact business in those states in which it is notice filed, or qualifies for an exemption or exclusion from notice filing requirements. This document is limited to the dissemination of general information regarding ProCourse s investment advisory services to United States residents residing in states where providing such information is not prohibited by applicable law. Accordingly, the publication and dissemination of this document should not be construed by any client and/or prospective client as ProCourse s attempt to effect transactions in securities or the rendering of personalized investment advice for compensation. Furthermore, this document does not constitute the rendering of any legal or tax advice to any client or prospective client. The information in this document should not be construed, in any manner whatsoever, as a substitute for personalized individual advice from ProCourse. Any subsequent, direct communication by ProCourse with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption from registration in the state where the prospective client resides. Information pertaining to the registration status of ProCourse is available on the U.S. Securities and Exchange Commission s website at This document and any graphic image, data, and other non-text based materials contained herein are proprietary to ProCourse and/or third parties. Any unauthorized use of the ProCourse Fiduciary Advisors, LLC name (or any variation thereof), or the graphic images and data contained in this document is prohibited. Information provided is obtained from sources deemed to be reliable, but ProCourse Fiduciary Advisors, LLC. does not guarantee the accuracy or completeness of the information or make any warranties with regard to the results to be obtained from its use. This material is for informational purposes only. Sources Workplace Benefits Report, December International Foundation of Employee Benefit Plans Financial Education for Today s Workforce: 2014 Survey Results Boston College and Center for Work & Family, The MetLife Study of Financial Wellness Across the Globe SHRM Research Spotlight: Financial Education Initiatives in the Workplace AP-AOL Health Poll: Debt Stress: The Toll Owing Money Takes on the Body: Financial Wellness in the Workplace: Oct. 1, SHRM Executive Summary: Financial Wellness in the Workplace 16