Making new connections: health, finances, and workplace engagement

Connecting the dots to help improve workplace productivity & engagement

Mental health in the workplace  1 in 3 workplace disability claims are now related to mental illness 1  Half of all workers in Canada say they have or have had a mental health issue 2  Almost 90% of employers identified stress as the most significant mental health concern 3 1.Sairenen, S., Mantzanke, D., Smeall, D. (2011) 2.Conference Board of Canada (2011) 3.Ceridian Workplace Wellness Survey (2013)

Sources of stress  Industry restructuring, a challenging economy and family/personal environment can all be sources of stress  However, almost 3 out of 4 Canadians are also carrying large amounts of debt 1  The average Canadian owes $1.65 for every dollar of disposable income earned 2  With consumer debt so high and mental health claims increasing, Manulife wanted to explore the links between employee financial stress, physical health and mental health to see how that affected performance on the job 1.CIBC Debt Poll, May Financial Post/Bloomberg News, Mar. 15, 2013

The 2014 Manulife/Ipsos Reid Health & Wealth Wellness Study 2000 working Canadians Working 20+ hours Ages Half with plans Varying income levels Methodology

The “Financially Prepared” vs. the “Financially Unprepared” Financially Prepared:  Has a financial plan  Has a debt management plan & appropriate level of debt  Saving sufficiently for retirement Financially Unprepared:  No formal financial plans  High debt levels, maxing out credit, minimal savings  Not saving for retirement

Employee Engagement  Cares about their work and accomplishing company goals  Isn’t working just for the money, they truly want to be there  Engaged employees go the extra mile

Takeaway 1 There are strong links between how financially prepared an employee feels, and how healthy, engaged and productive they are in the workplace.

Takeaway 1 The financially unprepared are: Twice as likely to be distracted by financial worries

Takeaway 1 The financially unprepared are: MORE LIKELY TO BE LIVING PAYCHEQUE TO PAYCHEQUE AS LIKELY TO BE HAVING DIFFICULTY MAKING ENDS MEET MORE LIKELY TO BE DISTRESSED ABOUT FINANCES GREATER LIKELIHOOD TO BE WORRIED ABOUT FINANCIAL STATE OF HEIRS

Takeaway 1 The financially unprepared are: MORE LIKELY TO BE WORRIED ABOUT LACK OF EMERGENCY MONEY MORE LIKELY TO MAX OUT CREDIT CARDS LESS LIKELY TO HAVE A RETIREMENT SAVINGS GOAL MORE LIKELY TO STRESS OVER LACK OF RETIREMENT PLAN

Takeaway 1 1 in 5 employees are financially unprepared

Takeaway 1 The financially prepared are: MORE LIKELY TO BE ENGAGED AT WORK MORE LIKELY TO BE ENJOYING THEIR WORK MORE LIKELY TO SAY THEY’RE LEARNING NEW THINGS MORE LIKELY TO BELIEVE OPINIONS ARE VALUED MORE LIKELY TO FEEL SUPPORTED IN CAREER MORE LIKELY TO SAY KNOWLEDGE AND SKILLS ARE USED

Takeaway 1 The financially prepared are: MORE LIKELY TO BE MOTIVATED TO DO THEIR BEST MORE LIKELY TO SAY THEY’RE PRODUCTIVE

Takeaway 2 There is a positive link between health and financial wellbeing. Employees that are financially prepared are more likely to be healthier than those feeling unprepared.

Takeaway 2 Financial wellbeing and health More likely to exercise 1+ hours weekly More likely to identify as being very healthy

Takeaway 3 Having a workplace benefits and retirement savings plan is a way to become financially prepared.

Takeaway 3 MORE LIKELY TO BE FINANCIALLY PREPARED THAN THOSE WITHOUT PLANS OF THOSE WITH WORKPLACE PLANS WERE FINANCIALLY PREPARED OF THOSE WITHOUT WORKPLACE PLANS WERE FINANCIALLY PREPARED MORE LIKELY TO HAVE A PERSONAL RETIREMENT SAVINGS PLAN MORE LIKELY TO HAVE A PERSONAL DEBT MANAGEMENT PLAN Individuals with both workplace benefits and retirement savings plans:

Takeaway 4 Financial advisors improve chances to be financially prepared.

Takeaway 4 5x more likely to have a financial advisor 3.5x more likely to have set retirement goals

Encourage your employees to become financially prepared

Encourage your employees to stay active and lead a healthy lifestyle

Encourage your employees to find and work with an advisor

Thank You