For Institutional Investor Use Only. Not for use with or distribution to the public.
Employee Engagement
Strategies: The Cornerstone
for Successful Retirement
Outcomes
Connie Weaver,
Executive Vice President
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The world used to be very simple
Richard F. Niebling, Teacher, English Department Phillips Exeter Academy, 1961
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Then it got complicated
Plan Set-up and Design
Approved Plan Investment providers
Establish fiduciary process
Written Plan Document
Universal Availability Requirement
Administrative Procedures
Employer Contributions
Compliance with Plan Audit
Investment menu construction
Multi-generational workforce with
Increasingly complex needs and decisions
Compliance with 5500 filings
Loans and Remittance
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4. Investment
Selection
“Which
investment choices
are best for me?”
External factors drive an increasingly complex decision tree for
Plan Sponsors and Participants….
2. Investment
Selection
“What
investment choices
are best for our
employees?”
“How should
I start?”
5. Awareness and
Planning
“Who can
I trust to give
me advice?”
6. Advisory
1. Recordkeeping
“Who can
we trust
to administer our plan?”
3. Plan Selection
“Which plan
provider do I
trust my retirement
money with ?”
“What’s the
best way to receive
retirement income?”
7. Income
Distribution
B2B
B2C
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Our “Co-Operative” view…enables “Outcomes that Matter”
Plan Provider
Advisor Consultant
Plan Sponsor
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The “Co-Operative” analyst relationships in the Tech Industry
Corporate End Users/Customers
Customer’s IT Buyer
Customer’s
strategy
Content /Consulting
Tech Industry Analyst IT Providers
Advocacy
Consu
lting
IT S
erv
ices
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Plan Sponsor Services
But there is still a bifurcated approach to
defining and driving outcomes
Consulting and
services to
reduce cost,
drive efficiencies
and mitigate risk
Plan
Management
Programs are focused on two sets of customers:
Consulting and
features that
drive the best
employee actions
Plan
Design
Low cost
annuities and
access to a wide
variety of mutual
funds
Investment
Platform
Participant Services
Integrated advice
and education
programs to
drive action
toward financial
well-being
Employee
Engagement
TIAA-CREF’s areas of strength
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Our holistic, interdependent Co-Operative model includes
employee engagement – to achieve customer outcomes
…ensuring the
participant retires with
sufficient replacement
income
A dynamic
ecosystem with
one goal in mind…
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Look to the “science” of employee engagement
to drive better outcomes
Understand
the customer,
environment and their
needs
1 Segment based
on behavioral
characteristics
2 Draw on analysis to
bring together and
create the foundation
of the program
3
Create personalized,
relevant programs
that meet individual
needs
4 Measure to assess
outcomes and refine
programs
5
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Customer insights - the foundation of
our approach to achieving better outcomes
Insights
Historical Brand
Information
Consumer Quantitative
Consumer Qualitative
Institutional Qualitative
Win/Loss Study
Internal Interviews
Competitive Message
Audit
Approximately
8,000 consumers
surveyed
Included plan
sponsors, RIAs,
TPAs and
Consultants
Included front-
line employees
and senior
management
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A hierarchy of needs exists for employees – it dictates their
attitudes towards finances and retirement
Building a nest egg
Supporting life goals
Meeting basic financial demands
86% of young people agree
that retirement is an
important consideration;
51% feel other savings are
more important now1
26% of consumers have
clear savings and investing
goals and a plan to reach
them1
56% of consumers save as much
as they can – 48% still cannot save
as much as they'd like for
retirement, and 30% are very
worried about retirement1
1 Boston Consulting Group, 2011
For most, the aspiration
isn’t so much about
creating a secure
retirement, but managing
their present situation. An
education gap exists.
Planning for retired life
Living
the next
phase
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Engagement focuses on helping employees achieve financial
well-being–it starts by meeting them where they are!
You can’t
get people
from here to here
Working Living through a
secure
retirement
Paying
down
debt
Buying a
home
Managing
expenses
and money
problems
Finding a financial
advisor
Market
volatility
Figuring out
the plan for
retirement
income
Without engaging them about the things
that happen along the way
Putting kids
through
college
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Dollar Stretchers Living paycheck-to-paycheck
Accumulators
Leading comfortable, but
increasingly complex,
lifestyles while
accumulating assets
Transitioners
Shifting from
accumulation to
distribution
Established
Living in
retirement
Life Builders Focused on basic life aspirations
Segmentation provides the way to address individual needs of
customers and make a greater impact
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Customer needs drive the messaging, communication and
engagement in a sequenced and relevant manner
Tier 1:
Dollar
Stretchers
Tier 2:
Life Builders
Tier 3:
Accumulators
Tier 4:
Transitioner
Tier 5:
Established
Plan fundamentals
• Enroll in the plan
• Consolidate for simplicity
• Save to the match
• Diversify investments
High Priority High Priority High Priority Medium Priority NA
Financial fundamentals
• Learn the basics
• Make a budget
• Pay down debt
• Save for emergencies
• Insure for basic protection
High Priority High Priority Low Priority Medium Priority Medium Priority
Maximizing retirement savings
• Save to the max
• Use catch-up savings
• Save beyond the plan
• Save for retirement health expenses
Medium Priority Medium Priority High Priority High Priority Low Priority
Balancing interim goals
• Save for a home
• Plan for college
• Provide for elderly parents
• Save for discretionary goals
• Address complex needs
Low Priority High Priority High Priority
Medium Priority Low Priority
Planning for and living in retirement
• Make a retirement plan
• Manage and track income /
withdrawals
• Plan for the next generation
High Priority
(based on age) Low Priority Low Priority High Priority High Priority
SE
QU
EN
CIN
G B
Y P
RIO
RIT
Y
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Segment Analysis
Deep Dive Data Overlays
Program Design Based on Rigorous Diagnostics
The power of deep dive data analytics drives program
personalization, relevance and better outcomes
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Bringing art, science and technology together to deliver
personalized and actionable messaging…
5. Versioning call
to action
1. Plan level
4. Personalized
allocation data
3. Message driven by
segmentation
2. Participant level
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…and enabling the online experience to be highly
customized by needs
Steve Male, Dollar Stretcher
Maxine Female, Accumulator, IAS Client
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Delivering personalized, actionable messaging across all
channels can maximize outcomes
Digital Experience Phone Experience
Communications
and Education
Advertising and Direct Marketing
1:1 Advice and Planning
Seminars and
Workshops
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Measurement and planning establish benchmarks
and identify areas to dial up or down
Program by the Numbers
PlanFocus
Ongoing Business Planning
Segmentation
For Institutional Investor Use Only. Not for use with or distribution to the public.
Real
Results
For Institutional Investor Use Only. Not for use with or distribution to the public.
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Message Save More
Financial
Education Diversification
Goal Increase Savings Address financial
challenges
Drive Financial
Education Solutions
Call-to-Action Save More, Start today.
Understand the steps
you need to take. We can
help.
Make sure you’re
allocated appropriately
Components
- Budgeting tools
- Retirement Goal
Evaluator
- Drive to increase
contributions
- Budgeting tools
- Personal action plan
- Personal Advice
session
- Online Retirement
Advisor tool
- Review, reallocate,
rebalance
- Online Retirement
Advisor tool
- Personal Advice
session
Real Results #1: The power of segmentation - drive action
through a comprehensive, multi-channel campaign strategy
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Best practices can lead to positive outcomes
Lifestage
Dollar Stretcher Life Builder Accumulator Transitioner Established
Total
Employees* 168,125 262,001 218,483 117,281 29,374
Engaged
Employees* Response
Rate
13,505
8.0%
24,665
9.4%
26,522
12.1%
17,467
14.9%
3,922
13.4%
Employees*
Take Action Action Rate
9,885
73.2%
19,084
77.4%
20,963
79.0%
13,062
74.8%
2,961
75.5%
New Web
Registrants 1,941 2,447 1,741 802 201
Results based on TIAA-CREF 2012 national campaign to 795,264 participants. Response Rate = Engaged Participants/Total Participants.
Action Rate = Participants Taking Action/Engaged Participants. Contribution, advice and allocation results based on those who responded
8.0% 9.4% 12.1% 14.9% 13.4%
73.2% 77.4% 79.0% 74.8% 75.5%
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And real results
Resumed or
increased
contributions
16% Scheduled advice
sessions
22% Reallocated
51%
Results based on TIAA-CREF 2012 national campaign to 795,264 participants. Response Rate = Engaged Participants/Total Participants.
Action Rate = Participants Taking Action/Engaged Participants. Contribution, advice and allocation results based on those who responded
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Source: fr.wikipedia.org/wiki/California_Institute_of_Technology
Behavior
Low savings and contribution rates
Employees not actively managing accounts
Low participation in financial education seminars
and advice sessions
Focus on near-term needs overshadowing
long-term retirement planning
Demographics
Two Unique groups – Caltech campus and JPL
Diverse ethnic cultures/multiple languages with
different attitudes on savings
Population of reluctant retirees
Significantly lower savings rates among women
Source: fr.wikipedia.org/wiki/California_Institute_of_Technology
Real Results #2: Driving outcomes by igniting
engagement at Caltech
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Program Highlights – the “Science of Benefits”
Conducted segmentation research
Created end-to-end financial education program – including workshops,
individual counseling sessions, digital channels
Branded to resonate with target audience
50 workshops conducted over seven months
• Needs-based topics
Multilanguage
Special women’s track
Introduced Gamification: Financial IQ Quiz
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Caltech Results
Over 90% workshops attendees recommend to a friend
84% said workshop prompted them to take action
New IRA accounts increased 122%
Amount of contributions and rollovers to IRAs Doubled
Caltech campus Individual counseling sessions up 47%
Requests for a TIAA-CREF Wealth Mgt. Advisor up 26%
75% of employees who attended multiple sessions
reallocated or rebalanced their portfolio (vs. 26% of those
who did not attend a session)
21% increase among women in supplemental plan
participation; 16% for men
• Lastly, Jet Propulsion Lab (JPL) “Proudly Triumphed”
over Caltech in the battle for the Financial IQ trophy
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Only 26% of women are confident about their investment decisions.
More than half of American women are the primary breadwinners in
their households.
% of women in:
Higher Ed: 70%
Healthcare: 77%
Real Results #3: Build a comprehensive program to relate to
women’s specific needs and drive action
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Leading indicators improved significantly
37%
Over 5,500 employees at over 40+ institutions
164 Workshops
3 Interactive Large-Scale Community Events
4 Interactive On-Site Workshops
Personalized Online Content
Increased their
contributions an
average $1,200
(2X average)
73% Scheduled 1:1
appointment
Results are from TIAA-CREF Women to Women event attendees from 2011 through June 2013.
25%
Accumulators
4% Established
20% Dollar
Stretchers
32% Life
Builders
33% Prospects
19%
Transitioners
By segment: women reached
85% Rated the
workshops
valuable/highly
valuable
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Interactive Workshops
Social Media
& Community
One-on-one Planning Sessions
Video Series
& Webinars
Mentorship
Program
Sponsorship / Partnerships Women’s focused
communications
Personalized
online content Marquee Events
Women-to-Women: A 360° engagement strategy
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The impact of Advice
on actions and
outcomes
How plan design can affect
income replacement ratios
(i.e. loans)
Peer group
benchmarking
Savings rates and
replacement income
ratios
Income
replacement ratios
cross-referenced
by gender, age, tenure
Engagement & action
by life stage
Next Step - Relate the power of employee engagement to
retirement readiness through Plan Outcome Assessment
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Working “Co-Operatively” through the full plan cycle drives
outcomes that matter and retirement readiness
For Institutional Investor Use Only. Not for use with or distribution to the public.
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