Financial Wellness and Employee Motivation

Dyota Solutions Private Limited www.imoneyplant.com

Employers are under Stress

And so are the Employees!

But for organizations to achieve higher on Performance and Revenue…..

• Employees need to be high on:

– Motivation

– Self-belief

– Enthusiasm, etc.

• And low on

– Stress

– Negative energy

– Personal Finance issues, etc.

Productivity

Motivation

Enthusiasm

Motivation is directly related to Financial Wellness

There is Definite and Direct relationship between Employee Motivation at work and how secure he feels with respect to his Personal Finances

International Research has proved:

US Report on Financial Wellness

“Depending upon the workplace, 30% to 80% of employees waste work time dealing with personal financial matters, and it typically amounts to 12 to 20 hours a month.” -- Reported By Personal Finance Employee Education Foundation, Florida, USA

www.purchasingpower.com

Motivated Employee is essential for better Organization performance

Employee Motivation Employees with good financial wellness are the people that employers love because:

– such employees come to work with enthusiasm and energy

– enjoy consistent or increasing job productivity

– use a minimum of time attending to personal financial matters

– receive high performance ratings from their bosses

Financial Wellness

Latest Report on Financial Wellness from the US – Aon Hewitt Report

Employers are making the improved financial wellness of their employees a priority in 2013.

Aon Hewitt surveyed more than 425 U.S. employers, representing 11 million employees,

80% of employers are making financial wellness a top priority in 2013

61% are looking beyond current participation and savings rates and are helping workers evaluate their retirement readiness, up from 50% in 2012.

86% of companies plan to focus communications initiatives on helping workers evaluate and understand how much they need to save for retirement.

DC: Defined Contribution Plan e.g. EPF

Personal Finance Education is becoming very important

• Personal Finance Education has been found to be a very effective tool for Employees to remain stress free with respect to their Personal Financial Health

More and More Employers are investing on PERSONAL FINANCE EDUCATION for their employees

Our Research in India

• More than 90% of the respondents were getting less than 10% return on their investments

• Less than 10% of the respondents made profits by selling Investments after 5 years , for rest returns are still on paper or the paper gains have vanished

• Less than 1% of the respondents have planned their post-retirement cash flows

• More than 80% of respondents are looking for solutions to increase their monthly savings

(Survey of 1000 Employees in the age group of 25-40 working in HPCL, BPCL, THERMAX, RCF, Mazagon Dock,

and 3 Pvt. Sector companies in Chennai/Bangalore conducted between 1st May 2012-31 May 2013)

Employees Financial Wellness Situation and Knowledge in India?

• Employees are under stress every month since take home salary not sufficient for meeting cash outflows

• Retirement Planning is not something most employees plan for

– HR observed rapid increase in employees applying for Personal Loans

– HR found that employees were being forced to take Personal loan to take care of monthly outflow for Insurance Premium and EMI burden

– Employer provided option to reduce SA contribution to employees from 15% to 2% to increase take-home salary

– Surprisingly, 80% of employees immediately opted for reduced contribution to Super Annuation

Employees Financial Wellness Situation and Knowledge in India?

• HR Head realized how this would impact the Employee Retirement Corpus in future, and asked us to conduct Financial Wellness Program – Major portion of take-home salary was spent on

Insurance Premium, but Life Risk cover was not sufficient

– No Awareness at all why Employee sponsored schemes like EPF, SA, NPS are ideal for Retirement Planning, and in the interest of the employee

• Almost all employees who attended the workshop immediately opted to go back to 15% contribution to Super Annuation

What is Financial Wellness?

Not having to worry about finances

Having a written financial plan

Having your finances in place to achieve your financial goals while

adhering to basic principles of financial

planning

When you’re not stressed about money

Living within your means and having debts and

obligations that you can meet

No longer having to worry about retirement

To be in such a financial situation that your hopes,

dreams, and future endeavours for you and

your family are realistically possible and attainable

What does Financial Wellness mean?

FIVE

Levels

of

FINANCIAL WELLNESS

Level 0

Level 1

Level 2

Level 3

Level 4

Level 5

Our Financial Wellness Matrix

Level 5: One now focusses on implementing the plan to share wealth withsociety, At this stage one is secure on Short term and Long Term Financial Needs. This is the highest level of Financial Wellness.

Level 4: One has achieved what one wanted for themselves, but now savings and investment are being done primarily for accumulating wealth forthe next generation

Level 3: Savings have reached a stage where they is more than what one needs to achieve financial freedom. However, one is now saving & investing to meet one’s aspirational needs.

Level 2: Primary focus is on implementing the plan to make Financial Freedom a reality. One has started to save&investenough consistentlyeach month so as to achieve Financial Freedom in the near future

Level 1: One is able to comfortably meet normal financial needs even if pay cheque is delayed up to 3 months.

However one is still over-dependent on the monthly pay cheque, and monthly savings are far lesser than what is

needed to make Financial Freedom a reality

Level 0: Even if salary is delayed by one day, one is put to a lot of stress, due to committed monthly cash outflow like Insurance Premium, mortgage EMI, etc.

Who are we?

• Dyota Solutions is a Private Limited Company

– Specialize in Financial Wellness Solutions for salaried employees

– Presence pan India

• Western: Mumbai, Pune and Ahmedabad

• Southern: Bangalore & Chennai

• Northern: New Delhi

• Eastern: Kolkata

• Financial Wellness Product and Services of Dyota offered under the brand name imoneyplant®

In the last 24 months….

• We have acquired more than 45 customers across MNC, Private & Public Sector Companies as well as Government Institutions

• Conducted more than 150 Financial Wellness Workshops across 20 major cities in India

• Benefited over 4000 workshop participants

• Built up capability to conduct Workshops which suit every possible Age Group, and in multiple Indian languages

Our Customers

Our Customers

Financial wellness Program - Topics

• How to take Financial Decisions ? • Importance of XIRR • What difference can XIRR make to us? • What to do with Risks – Ignore or Avoid or Manage? • Importance of Managing Risks • Customizing Risk Management Solution based on Capacity

and Capability • Personal finance Ratios and their link to Financial Wellness

enhancement • How to Achieve level 5 Financial Wellness Status? • Behaviors Impacting our growth and how to address them

In Summary…….

• Employer sponsored Financial Wellness Education is a Top Priority for companies, especially US based companies

• Productivity at Work is impacted by poor Financial Health of employee

• Employees are under tremendous Financial Stress – Job Security is becoming a serious challenge – Limited/No Salary Raise in troubled Economic Scenario – Higher Cost of Living and Lifestyle expenses – Mortgage EMI and Insurance Premium Payment are big time

impacts to take-home salaries

• Financial Education has become a useful way in improving Employee Engagement and demonstrate employer commitment to help its own employees help themselves

Increase Employee Satisfaction Level and Staying Potential

By the time High-performing Employee reaches Age 50, we will ensure he is at LEVEL 4 of FINANCIAL WELLNESS

By securing Financial Wellness of High-performing Employee, Retention, Enthusiasm to perform, and Productivity will become a constant

Contact Information

Dyota Solutions Private Limited Plot 559, V N Purav Marg 56, Sunder,

CHS Opp Diamond Garden Chembur,

Mumbai 400071

Our website: www.imoneyplant.com

Email: dyota@dyotasolutions.com

Phone: +91 22 2529 8454

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