Employee Engagement Strategies: The Cornerstone for

Transcription

Employee Engagement
Strategies: The Cornerstone
for Successful Retirement
Outcomes
Connie Weaver,
Executive Vice President
For Institutional Investor Use Only. Not for use with or distribution to the public.
The world used to be very simple
Richard F. Niebling, Teacher, English Department
Phillips Exeter Academy, 1961
| 2
Then it got complicated
Plan Set-up and Design
 Approved Plan Investment providers
 Written Plan Document
 Universal Availability Requirement
 Administrative Procedures
 Employer Contributions
 Loans and Remittance
Establish fiduciary process
Compliance with Plan Audit
Compliance with 5500 filings
Investment menu construction
Multi-generational workforce with
Increasingly complex needs and decisions
| 3
External factors drive an increasingly complex decision tree for
Plan Sponsors and Participants….
1. Recordkeeping
3. Plan Selection
“Who can
we trust
to administer our plan?”
“Which plan
provider do I
trust my retirement
money with ?”
2. Investment
Selection
4. Investment
Selection
5. Awareness and
Planning
6. Advisory
7. Income
Distribution
“What
investment choices
are best for our
employees?”
“Which
investment choices
are best for me?”
“How should
I start?”
“Who can
I trust to give
me advice?”
“What’s the
best way to receive
retirement income?”
B2B
B2C
| 4
Our “Co-Operative” view…enables “Outcomes that Matter”
Plan Provider
Consultant
Advisor
Plan Sponsor
| 5
The “Co-Operative” analyst relationships in the Tech Industry
Corporate End Users/Customers
Customer’s IT Buyer
IT Services
Consulting
Customer’s
strategy
Content /Consulting
Advocacy
Tech Industry Analyst
IT Providers
| 6
But there is still a bifurcated approach to
defining and driving outcomes
Programs are focused on two sets of customers:
Plan Sponsor Services
Participant Services
Plan
Design
Investment
Platform
Plan
Management
Employee
Engagement
Consulting and
features that
drive the best
employee actions
Low cost
annuities and
access to a wide
variety of mutual
funds
Consulting and
services to
reduce cost,
drive efficiencies
and mitigate risk
Integrated advice
and education
programs to
drive action
toward financial
well-being
TIAA-CREF’s areas of strength
| 7
Our holistic, interdependent Co-Operative model includes
employee engagement – to achieve customer outcomes
A dynamic
ecosystem with
one goal in mind…
…ensuring the
participant retires with
sufficient replacement
income
| 8
Look to the “science” of employee engagement
to drive better outcomes
1
Understand
the customer,
environment and their
needs
2
Segment based
on behavioral
characteristics
4
Create personalized,
relevant programs
that meet individual
needs
3
Draw on analysis to
bring together and
create the foundation
of the program
5
Measure to assess
outcomes and refine
programs
| 9
Customer insights - the foundation of
our approach to achieving better outcomes
Historical
Brand
Information
Competitive
Message
Audit
Included frontline employees
and senior
management
Approximately
8,000 consumers
surveyed
Consumer
Quantitative
Insights
Internal
Interviews
Consumer
Qualitative
Win/Loss
Study
Institutional
Qualitative
Included plan
sponsors, RIAs,
TPAs and
Consultants
| 10
A hierarchy of needs exists for employees – it dictates their
attitudes towards finances and retirement
26% of consumers have
clear savings and investing
goals and a plan to reach
them1
Living
the next
phase
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
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
86% of young people agree
that retirement is an
important consideration;
51% feel other savings are
more important now1
Building a nest egg
Supporting life goals
Meeting basic financial demands
1
Boston Consulting Group, 2011
| 11
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
Market
volatility
Working
Paying
down
debt
Buying a
home
Finding a financial
advisor
Managing
expenses
and money
problems
Putting kids
through
college
Figuring out
the plan for
retirement
income
Living through a
secure
retirement
Without engaging them about the things
that happen along the way
| 12
Segmentation provides the way to address individual needs of
customers and make a greater impact
Accumulators
Leading comfortable, but
increasingly complex,
lifestyles while
accumulating assets
Life Builders
Focused on basic life aspirations
Transitioners
Shifting from
accumulation to
distribution
Established
Living in
retirement
Dollar Stretchers
Living paycheck-to-paycheck
| 13
SEQUENCING BY PRIORITY
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
Medium Priority
Medium Priority
High Priority
High Priority
Low Priority
Low Priority
High Priority
Medium Priority
Low Priority
High Priority
(based on age)
Low Priority
High Priority
High Priority
Maximizing retirement savings
• Save to the max
• Use catch-up savings
• Save beyond the plan
• Save for retirement health expenses
Balancing interim goals
• Save for a home
• Plan for college
• Provide for elderly parents
• Save for discretionary goals
• Address complex needs
Planning for and living in retirement
• Make a retirement plan
• Manage and track income /
withdrawals
• Plan for the next generation
High Priority
Low Priority
| 14
The power of deep dive data analytics drives program
personalization, relevance and better outcomes
Segment
Analysis
Deep Dive
Data Overlays
Program
Design Based
on Rigorous
Diagnostics
| 15
Bringing art, science and technology together to deliver
personalized and actionable messaging…
2. Participant level
3. Message driven by
segmentation
5. Versioning call
to action
4. Personalized
allocation data
1. Plan level
| 16
…and enabling the online experience to be highly
customized by needs
Steve
Male, Dollar Stretcher
Maxine
Female, Accumulator, IAS Client
| 17
Delivering personalized, actionable messaging across all
channels can maximize outcomes
Phone Experience
Digital Experience
Communications
and Education
1:1 Advice and Planning
Seminars and
Workshops
Advertising and Direct Marketing
| 18
Measurement and planning establish benchmarks
and identify areas to dial up or down
PlanFocus
Segmentation
Ongoing Business Planning
Program by the Numbers
| 19
Real
Results
Real Results #1: The power of segmentation - drive action
through a comprehensive, multi-channel campaign strategy
Message
Goal
Call-to-Action
Components
Save More
Financial
Education
Diversification
Increase Savings
Address financial
challenges
Drive Financial
Education Solutions
Save More, Start today.
Understand the steps
you need to take. We can
help.
Make sure you’re
allocated appropriately
- Budgeting tools
- Personal action plan
- Personal Advice
session
- Online Retirement
Advisor tool
- Review, reallocate,
rebalance
- Online Retirement
Advisor tool
- Personal Advice
session
- Budgeting tools
- Retirement Goal
Evaluator
- Drive to increase
contributions
| 21
Best practices can lead to positive outcomes
Lifestage
Dollar Stretcher
Life Builder
Accumulator
Transitioner
Established
168,125
262,001
218,483
117,281
29,374
13,505
8.0%
24,665
9.4%
26,522
12.1%
17,467
14.9%
14.9%
3,922
13.4%
13.4%
Action Rate
9,885
73.2%
19,084
77.4%
77.4%
20,963
79.0%
79.0%
13,062
74.8%
2,961
75.5%
New Web
Registrants
1,941
2,447
1,741
802
201
Total
Employees*
Engaged
Employees*
Response
Rate
Employees*
Take Action
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
| 22
And real results
16%
22%
51%
Resumed or
increased
contributions
Scheduled advice
sessions
Reallocated
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
| 23
Real Results #2: Driving outcomes by igniting
engagement at Caltech
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
Source: fr.wikipedia.org/wiki/California_Institute_of_Technology
 Significantly lower savings rates among women
Source: fr.wikipedia.org/wiki/California_Institute_of_Technology
| 24
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
| 25
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
| 26
Real Results #3: Build a comprehensive program to relate to
women’s specific needs and drive action
 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%
| 27
Leading indicators improved significantly
 Over 5,500 employees at over 40+ institutions
20% Dollar
Stretchers
 164 Workshops
33% Prospects
 3 Interactive Large-Scale Community Events
 4 Interactive On-Site Workshops
4% Established
19%
Transitioners
 Personalized Online Content
32% Life
Builders
25%
Accumulators
By segment: women reached
85% 37% 73%
Rated the
workshops
valuable/highly
valuable
Scheduled 1:1
appointment
Increased their
contributions an
average $1,200
(2X average)
Results are from TIAA-CREF Women to Women event attendees from 2011 through June 2013.
| 28
Women-to-Women: A 360° engagement strategy
One-on-one Planning Sessions
Sponsorship / Partnerships
Interactive Workshops
Women’s focused
communications
Video Series
& Webinars
Personalized
online content
Marquee Events
Mentorship
Program
Social Media
& Community
| 29
Next Step - Relate the power of employee engagement to
retirement readiness through Plan Outcome Assessment
The impact of Advice
on actions and
outcomes
Income
replacement ratios
cross-referenced
by gender, age, tenure
Engagement & action
by life stage
Savings rates and
replacement income
ratios
Peer group
benchmarking
How plan design can affect
income replacement ratios
(i.e. loans)
| 30
Working “Co-Operatively” through the full plan cycle drives
outcomes that matter and retirement readiness
| 31
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors
Services, Inc., members FINRA, distribute securities products. Annuity contracts and
certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College
Retirement Equities Fund (CREF), New York, NY.
TIAA-CREF products may be subject to market and other risk factors. See the applicable
product literature or visit tiaa-cref.org for details.
You should consider the investment objectives, risks, charges and expenses carefully
before investing. Please call 877-518-9161 or go to www.tiaa-cref.org for current
product and fund prospectuses that contain this and other information. Please read
the prospectuses carefully before investing
tiaa-cref.org
© 2013 Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017
C12438
ForInstitutional
Institutional
Investor
Not
forwith
useorwith
or distribution
to the public
For
Investor
UseUse
Only.Only.
Not for
use
distribution
to the public.
| 33

Employee Engagement Strategies: The Cornerstone for

Transcription

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