This document summarizes a presentation by HelloWallet on helping companies design employee total rewards programs centered around employee behavior and financial wellness. It discusses how most programs don't account for employee choices, perceptions and habits regarding benefits. It also notes that employees often lack financial confidence and readiness. The presentation advocates for financial guidance and budgeting tools to improve employee prosperity and readiness for consumer-driven benefits. It shares one company's experience finding that employees primarily want help saving small extra amounts first before investment advice.

1. People First, Programs Second
A New Approach to Total Rewards
November 2013

2. POLL:
People First, Programs Second is a:
a) Campaign slogan
b) Marketing phrase
c) Consideration for 2014
total rewards planning
d) Typo

3. Agenda
1. Speaker & HelloWallet Introduction
2. Designing Total Rewards Programs
3. People First, Programs Second
4. Employer Spotlight
5. Questions

4. Speakers
Rob Pinkerton
Chief Marketing Officer, HelloWallet
John Lang
Customer Success Manager,
HelloWallet

5. HelloWallet
Behavioral Science Driven
Software Backed by Consumer
Finance Expertise
Webby Winner
Best Financial Services Website for 2013

6. These Companies Love Us

7. Designing Total
Rewards Programs
Total rewards programs today are
developed using numerous strategies
and metrics including:
•
Program Benchmarking
•
Employee surveys & focus groups
But do these account for
employee behavior?

8. POLL:
What role does employee
behavior play in your total
rewards design?
a) A big role
b) A moderate role
c) A small role
d) No role at all

9. Behind Every Employee,
There is a Unique Story

10. Jonathan’s Story

11. “
So far, we’ve paid off 6 cards –
almost $10,000. A huge unintended
benefit of HelloWallet is that it
helped my marriage.”
– Jonathan

12. Choices,
Perceptions,
and Habits

13. Choice Overload

14. “
We don’t really have a savings
account – I know the plan is to pay
down one more credit card and then
we’ll free up money to put into a
savings account.”
– New HelloWallet Member

15. Skewed Perception

16. “
The traditional paths to retirement
are changing – they might not be
available. Sometimes my fear takes
me to a place of inaction.”
– HelloWallet Member

17. Habit Formation

18. “
I finally feel like I have control over
the family budget which has always
been a real weakness for me.”
– HelloWallet Ambassador

19. “
And it makes saving for retirement
seem less big and scary.”
– HelloWallet Member

20. POLL:
Are your employees financially
confident?
a) Yes
b) No
c) Not sure

21. Market Observations

22. Employees are not financially ready to
engage in consumer-driven benefits
70%
of people live paycheck to paycheck
1/3
of employees spend 2-4 hour per day dealing
with financial issues
$70B
#1
REASON
leaked out of 401(k) plans in 2012 to access
short-term capital
#1
REASON
people don't adopt CDHP is fear of deductible
people don't adopt HSA/FSA is no
understanding of what they spend

23. Little to no data to support decision making or
measure performance
No holistic data about people to
inform program investments
Limited ability to predict outcomes
based on employee behaviors
ROI measured emotionally
versus objectively

24. Yet, benefits investments do no address
foundational needs
$6 Billion spend annually on investment advice
which has nominal impact on portfolio wealth
compared to savings
Health programs increasing at 3x
inflation while CDHP adoption is low
Traditional financial planning programs cost
prohibitive and yield average of 3-5% participation

25. Our Product Delivers a “Win-Win”
Unbiased financial guidance to
budget, plan, and increase prosperity
Drives increased readiness for
consumer driven Benefits
Connects with Benefits best suited to
individual needs (401(k), HSA, FSA,
Insurance)
New data intelligence about the
holistic needs of employees to
better align Total Rewards
investments
ROI realized in the form of cost
savings and program
improvements outcomes

26. POLL:
Do you know how much money
was removed from your 401(k)
last year for non-retirement
purposes?
a) Yes
b) No

27. People-centric impetus for providing financial
guidance to workforce:
Means to positively improve financial behavior
Means to achieve prosperity through a proven
data-driven approach

28. Cultivating Innovation

29. People-centric impetus for providing financial
guidance to workforce:
Means to achieve a solid financial foundation
Means to improve individual retirement readiness

30. Saving the Extra Dollar with MMC

31. “
We learned the average employee
is not looking for investment advice,
they are looking to find the extra
dollar to save to start with.”
– Andrea Smith, Director of Health Wellness & Benefits
March McLennan Companies

35. POLL:
What would you like more data
around to inform total reward
decisions?
a) Retirement readiness
b) Financial stress
c) Financial wellness
d) Health spending

36. Snapshot of employer reporting

38. Want to Learn
More?
Visit our website
www.hellowallet.com
Contact a HelloWallet representative
sales@hellowallet.com

39. Let’s Build
a Better Future