Sound advice

RBC has had this idea for quite awhile—after all, it is in the financial business. However, “it’s a matter of when is the right time to just bring it all together,” says Caroline Blouin, vice-president, HR, with RBC Wealth Management and RBC Insurance.

The right time for RBC was November 2012, coinciding with Canada’s Financial Literacy Month. The financial institution—which will celebrate its 150th anniversary in 2014—launched its annual campaign with a broad focus on financial planning and literacy, including topics such as debt management, insurance needs, short-term savings goals and retirement savings, as well as the company’s DC plan for new employees.

During the campaign, RBC’s approximately 57,000 full- and part-time employees in Canada received three weekly emails to promote the initiative with a simple message: Invest in Yourself. The emails were co-signed by senior leaders in Canadian Banking and HR. “This was not just an HR initiative,” says Blouin. “Our financial planning experts were at the table.”

Through the emails, RBC encouraged employees to attend its advice events, led by in-house financial planners and insurance and pension experts. Employees can arrange a one-on-one meeting with a financial and/or insurance advisor.

RBC also wanted employees to visit its new Invest in Yourself website, which provides financial education and planning tips. To help spread the word, employees had a chance to win prizes by referring a colleague to the new site.

In the campaign’s three-week span, the website had more than 19,000 hits and 4,700 referrals. Two hundred employees attended the first advice event, and another 200 completed the e-learning modules. As of Sept. 30, 2013, the website boasted more than 38,000 hits, more than 1,500 employees attended an advice event, and 1,000-plus employees completed the modules.

Lessons Learned
Blouin says the initiative has been resonating well with employees. And it’s not just a matter of measuring website hits or counting the number of employees attending events—there has also been more direct feedback.

Certainly, the advice component was a hit with 43-year-old Russ McNally, senior HR business partner, Canadian Banking Operations, with RBC. McNally attended an advice event in December 2012. Although he had some knowledge of financial concepts, he felt it was time to get more information on what to do with his money. “It was time for me to think more strategically around how I’m going to use my money and how I’m going to invest for the future, for my family and retirement.”

McNally took away a few key insights from the presentation. One was around RBC’s employee savings program (in which he is already enrolled). Even though most of RBC’s employees participate in the program, McNally felt the event presenters provided “good counsel” to remind those who were still not participating that they are leaving money on the table. “From a total rewards perspective, we need to make sure that all employees are aware of the program and how it works,” says McNally, “and to maximize the benefits.”

But the biggest “aha moment” for McNally was the importance of financial planning and, if needed, getting professional help from one of RBC’s financial planners—an opportunity he took advantage of.

McNally had two main sessions with his financial planner and then a few follow-up sessions. “I had to pull together a budget for her, pull together all of my financial statements. She did a full review and provided me with some advice and counsel. It was pretty in-depth,” he recalls, though he was appreciative of having the help and support, as well as knowing that he wasn’t alone in the journey.

Employee Support
To help employees with financial planning, RBC encourages them to participate in its pension and savings programs. New employees are automatically enrolled in RBC’s DC plan, with an automatic contribution from RBC to “ensure a minimum level of savings for everyone,” says Blouin. If employees want to contribute on their own, RBC will provide a company match. During enrollment or at any time thereafter, employees can also opt to auto-escalate their contributions.

In 2011, RBC conducted its annual wellness assessment with the addition of several finance-specific questions on whether employees have a financial plan that reflects their various sources of retirement savings and income, their level of confidence in making financial decisions and their top financial concerns, as well as a few basic questions to help assess their level of financial literacy.

The assessment found that 60% of respondents were not entirely sure they will have enough retirement income, and 50% wanted more support from RBC in making personal financial decisions. Employees’ top financial concerns were mortgages and retirement savings—a fifty-fifty split.

RBC also ran a DC plan member survey that year. The results showed that half of DC plan members preferred “hands-off ” investment solutions such as target date funds.

“We knew that some of our employees were not entirely comfortable with their own financial planning abilities, and we knew that some of them delayed taking action,” explains Blouin. “We want our employees to take action toward achieving their financial goals. We’re doing this by increasing their understanding of financial concepts and building their confidence so they can be more comfortable making financial decisions.”

Blouin says that by helping employees feel comfortable with their financial plans, RBC is demonstrating that management cares about their well-being. McNally certainly got the message. “To have that benefit of a one-on-one with a professional is pretty unique, and it’s a big benefit,” he acknowledges. However, he also understands that his finances are his responsibility.

“I think people should have greater awareness around their financial literacy,” he adds. “Much like running a business, you should be running your own finances like a business as well. It takes the same type of discipline, and that’s not something you necessarily know coming out of school and early in your career. It takes a bit of time.”

Brooke Smith is managing editor of Benefits Canada.

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