BENEFITS AND REWARDS SERVICES

SUPPORTING YOUR EMPLOYEES’

CHANGING FINANCIAL GOALS

Jamie MackenzieMarketing Director

2 –

1. Market issue: Financial wellbeing

2. Demographic of those affected

3. Impact on your organisation

4. How to address this issue

Agenda

Financial Wellbeing - Jamie Mackenzie

Market issue: Financial wellbeing

3 – Financial Wellbeing - Jamie Mackenzie

■ 63% of Britons worry about the lack of savings (StepChange Debt Charity)

■ 28% of employees struggle to save due to lack of discipline (Sodexo 2013)

■ Only 35% of employees feel optimistic about their financial future (Barclays 2014)

■ 7.4 m Britons have trouble sleeping because of money worries (StepChange Debt Charity)

■ Employees struggle with ‘key areas that relate to day-to-day money management and planning ahead’ (University of Bristol Personal Finance Research Centre)

■ Issue of workers not saving for retirement, addressed by auto-enrolment of pensions

Younger demographic worst affected as real incomes have fallen particularly

sharply for young adults.*

33% of 18-34 year olds say that money worries impact

their productivity in the office

4 – Financial Wellbeing - Jamie Mackenzie

AB Upper and middle class

43%

C1 Lower middle class 51%

C2/D Skilled and non-skilled working class

70%

*(Comparing 22-30-year-olds in 2012–13 with those in 2007–08, median household income (RPI-deflated) fell by 13% BHC and 20% AHC. This compares with falls of 7% and 11% respectively for those aged 31–59.(IFS: Living Standards, Poverty and Inequality 2014)

Money worries common for employees across all demographics

Worry about personal finances is a common theme across all social grades, with younger demographic (22-30) being the worst affected:

Independent Quantitative Survey for Sodexo (2013)

What employers think…

5 – Financial Wellbeing - Jamie Mackenzie

79% of employers agree that helping employees manage their finances would form part of their HR goals

(Sodexo 2013)

76% of employers agree that helping employees manage their finances meets their organisation’s CSR objectives

(Sodexo 2013)

Impact on your organisation

6 – Financial Wellbeing - Jamie Mackenzie

50% of stress related absences

are caused by financial distress

Absenteeism

Cost

Sick leave costs £40,500

per year

1 in 5 say financial

distress impacts their productivity

Productivity & Motivation

Cost

300 hours per year lost in productivity

due to financial distress

40% of staff turnover can be

attributed to financial distress

Cost

£30,614 to replace a single employee

(based on £25k earners across 5 sectors)

Retention

(Source: Sodexo, Unum and Barclays)

How?

?7 – Financial Wellbeing - Jamie Mackenzie

What employers can do

8 – Financial Wellbeing - Jamie Mackenzie

Reducing financial distress and increasing financial wellbeing:

Basic financial education

Credit counselling

Benefits information/education

Retirement education

Financial coaching and changing behaviours

(eFinplan)

When companies focus on employee health & financial wellbeing – it increases productivity,

competitive edge and improves ability to attract and retain talent.

(Towers Watson)

What employers can do

9 – Financial Wellbeing - Jamie Mackenzie

Demographic Short-term Medium-term

Younger Discount Shopping

Money Boost

Middle Discount Shopping

Money Boost

Senior Pensions Money Boost

Long-term

Pensions

Pensions

Pensions

Plan For Now

Plan For Tomorrow

Plan For Future

“An employee with financial issues costs the

employer 25 hours every month in lost productivity”

(Dr E Thomas Garman, President, Personal Finance Employee Education Foundation Professor Emeritus and

Fellow, Virginia Tech University)

Plan for now – Discount Shopping

10 – Financial Wellbeing - Jamie Mackenzie

Benefits to youA low cost way to motivate employees

Benefits to your employeesAccess to exclusive discounts

Employer take up (portal)

Employer take up (vouchers)

Employer take up (cards)

Employee take up (all)

0

0.1

0.2

0.3

0.4

0.5

0.6

0.0900000000000001

0.0800000000000002

35% 35%

35%

48%

0.40.36

0.2926%

34% 0.35

CIPD Reward Survey 2013

Sodexo Client Survey 2013

EBS 2011

Breakthrough 2013

EB / Xexec 2011

37% average employee take up, making it one of the most popular benefits

53% say Discount Shopping is highly valued by employees (Sodexo 2013)

Vouchers and cards offering exclusive discounts from a range of retailers, often accessible via a platform.

Plan for tomorrow – Money Boost

11 – Financial Wellbeing - Jamie Mackenzie

Money Boost card is issued by R. Raphael & Sons plc pursuant to license by Visa Europe Ltd. R. Raphael & Sons plc is a UK Bank authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (registration number 161302).

Plan for tomorrow – Money Boost

12 – Financial Wellbeing - Jamie Mackenzie

Money Boost is a simple practical tool

Empowers employees to establish better money management

Allows you to set and achieve medium-term financial goals

Employer reward through financial top-up

Applicable to the whole workforce

Simple and easy to implement and administer

Medium Term GAP in the market

In summary: Plan for now, tomorrow and the future

13 – Financial Wellbeing - Jamie Mackenzie

Improved Financial Planning2Enhanced Productivity3

Increased Retention4Increased Engagement5

Reduced Financial Stress1

Employees’ financial goals are changing so it’s important to offer solutions to support these …

Plan For Now Plan For Tomorrow Plan For The Future

THANK YOU

Come and talk to us to find out more and for your chance to win a £200 Simply gift card.

Visit us at stand 501

www.SodexoBenefitsRewards.co.uk@SodexoBR_UK