People First, Programs Second A New Approach to Total Rewards

November 2013

POLL: People First, Programs Second is a:

a) Campaign slogan b) Marketing phrase c) Consideration for 2014

total rewards planning d) Typo

1. Speaker & HelloWallet Introduction

2. Designing Total Rewards Programs

3. People First, Programs Second

4. Employer Spotlight

5. Questions

Agenda

Rob Pinkerton Chief Marketing Officer, HelloWallet

John Lang Customer Success Manager, HelloWallet

Speakers

Behavioral Science Driven Software Backed by Consumer Finance Expertise

HelloWallet

Webby Winner Best Financial Services Website for 2013

These Companies Love Us

• Program Benchmarking • Employee surveys & focus groups

But do these account for employee behavior?

Total rewards programs today are developed using numerous strategies and metrics including:

Designing Total Rewards Programs

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

Behind Every Employee, There is a Unique Story

Jonathan’s Story

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

Choices, Perceptions, and Habits

Choice Overload

“ 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

Skewed Perception

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

Habit Formation

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

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

POLL: Are your employees financially confident?

a) Yes b) No c) Not sure

Market Observations

70% of people live paycheck to paycheck

Employees are not financially ready to engage in consumer-driven benefits

of employees spend 2-4 hour per day dealing with financial issues

leaked out of 401(k) plans in 2012 to access short-term capital

people don't adopt CDHP is fear of deductible

1/3 $70B

#1 REASON

people don't adopt HSA/FSA is no understanding of what they spend #1

REASON

No holistic data about people to inform program investments

Little to no data to support decision making or measure performance

Limited ability to predict outcomes based on employee behaviors ROI measured emotionally versus objectively

$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

Yet, benefits investments do no address foundational needs

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

POLL: Do you know how much money was removed from your 401(k) last year for non-retirement purposes? a) Yes

b) No

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

Cultivating Innovation

People-centric impetus for providing financial guidance to workforce:

Means to achieve a solid financial foundation

Means to improve individual retirement readiness

Saving the Extra Dollar with MMC

“ 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

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

Snapshot of employer reporting

Want to Learn More? Visit our website

www.hellowallet.com Contact a HelloWallet representative

sales@hellowallet.com

Let’s Build a Better Future