financial wellbeing – roi?...dramatic given that 37% of millennials say their finances have been a...
TRANSCRIPT
Financial Wellbeing – ROI?
Ian Dearnley June 2019
What is financial wellbeing?
The pillars of
wellbeing
Mental
Physical Financial
What is financial wellbeing?
Mental
Financial
PwC Group death in service overview PwC | 4
Why is this now an issue for employers?
For every £1 million an organisation spends on payroll...
...there is an estimated 4% loss in productivity due to poor employee financial wellbeing (Barclays 2014).
One in four employees say that financial concerns have affected their ability to do their job.
This increases to 31% for 18-24 year olds and 32% for employees in London.
31% 32%
25%
70% of the UK workforce admit to wasting a fifth of their time at work worrying about their finances (Neyber 2016).
PwC Group death in service overview PwC | 5
What does improving financial wellbeing address?
Employee
Maximising tax allowances
Improving saving levels
Understanding of state pension
Pensions investment
options
Avoiding scams/fraud
Maximising state benefits
Debt management
Understanding retirement
choices
Maximising pension
allowances
General money
management
Employer
Retention Appreciation of employer pension
contribution
Improving productivity
Being an employer of choice
PwC Group death in service overview PwC | 6
The impact on the bottom line...
Estimate of productivity cost due to financial distractions
And if your company has a particularly large contingent of Millennials, the numbers may be even more dramatic given that 37% of Millennials say their finances have been a distraction at work and of that 37%, 49% admit to spending three hours or more at work each week dealing with personal finance issues.
3,000 distracted employees
10,000 employees 30% who are distracted x =
X 30%
= 100 employees
3,000 distracted employees x 46% who spend
3+ hrs/wk
1,380 employees spending 3+ hrs/wk on finances at work
=
190,440 hours lost
46 ave work weeks/yr = 3 hours per
week 1,380 employees x x
190,440 hours x £11.69/hr* ave skilled
worker wage
£2.2M lost per
year =
Reference: PwC US 2017 Employee Financial Wellness survey results and Average UK skilled worker wage taken from ONS data May 2018
How a financial wellbeing programme can help the employer
Recruitment Retention Recognition Reward Retirement
How a financial wellbeing programme can help the employer
PwC | Wellbeing well thought | 6 January 2019
Recruitment Retention Recognition Reward Retirement
PwC Group death in service overview PwC | 9
Analyse, don’t guess – targeted FE
traffic light system to show the savings, debt, cash flow and credit circumstances and behaviours your workforce may have.
postcode analysis tool, to build a profile of employees and use that to inform you of their typical profiles
PwC Group death in service overview PwC | 10
Pension providers One ‘wellbeing’ solution providers
Tech enabled solutions
Other financial education ‘specialists’
Financial wellbeing market
PwC Group death in service overview PwC | 11
The impact on the bottom line...
Estimate of productivity cost due to financial distractions
And if your company has a particularly large contingent of Millennials, the numbers may be even more dramatic given that 37% of Millennials say their finances have been a distraction at work and of that 37%, 49% admit to spending three hours or more at work each week dealing with personal finance issues.
3,000 distracted employees
10,000 employees 30% who are distracted x =
X 30%
= 100 employees
3,000 distracted employees x 46% who spend
3+ hrs/wk
1,380 employees spending 3+ hrs/wk on finances at work
=
190,440 hours lost
46 ave work weeks/yr = 3 hours per
week 1,380 employees x x
190,440 hours x £11.69/hr* ave skilled
worker wage
£2.2M lost per
year =
Reference: PwC US 2017 Employee Financial Wellness survey results and Average UK skilled worker wage taken from ONS data May 2018
PwC Group death in service overview
Questions?
Ian Dearnley Senior Manager, Pensions North M: 07704 074565 E: [email protected]
pwc.com
This is a proposal document and does not constitute a contract of engagement with PricewaterhouseCoopers LLP. The information set out in it is an indication of the terms on which we propose to carry out [ insert description of proposed work ] for you but the proposal is subject to the terms of any subsequent engagement contract that may be entered in to between us. In the event that our proposal to you is successful, our acceptance of the engagement will be contingent upon the completion of all our internal engagement acceptance procedures. © 2018 PricewaterhouseCoopers LLP. All rights reserved. PwC refers to the UK member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. 181211-091428-ID-OS