Diversions March 26, 2015

A Work-Life Balance Schism

Who is achieving work-life balance? The answer depends on whether you ask HR professionals or actual employees.
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A disconnect on work-life balance is evident from a study by WorkplaceTrends.com and CareerArc, which found that two out of three HR professionals say their employees are successfully dividing time between work and personal life. But nearly half of employees say they feel time pressures and lack enough time each week to do personal activities.

In the “2015 Workplace Flexibility Study,” just one in five employees surveyed spent more than 20 hours working outside of the office on their personal time per week—a clear indicator of sub-optimal work-life balance, the study says.

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Technology could be to blame: The survey found that most workers (65%) say their manager expects them to be reachable outside the office. From the HR perspective, 64% expect their employees to be reachable outside of the office on personal time.

Last year, of the companies that knew how much they invested in their work-life benefits programs, 60% spent less than $20,000 and 29% spent more than $40,000. More than half (53%) of these companies plan to invest more in their programs this year.

The study revealed employee and employer preferences on issues of work-life balance, flex programs, and benefits. Among other findings:

  • The biggest concern for employers that establish flexibility programs is potential employee abuse of the system (42%), followed by flexibility not being part of their culture (40%) and concerns about employee fairness (34%).
  • Half of employers ranked workplace flexibility as the most important benefit they believe their employees desire, compared with the 75% of employees who ranked it as their top benefit.
  • Employees, job seekers and HR professionals agree that paid and unpaid time off is most important to employees (72% of HR vs. 79% of employees and 74% of job seekers).
  • The top benefits that organizations saw in their work-flex programs were improved employee satisfaction (87%), increased productivity (71%) and retaining of current talent. Most (69%) use their programs as a recruiting tool.
  • More than a third (37%) of employers said the type of work matters most to employees, compared with the money made (24%). Yet 31% of employees said that the money they make is most important, followed by the type of the work they do.
Deals & People March 25, 2015

Northwestern Mutual to Acquire LearnVest

Northwestern Mutual says it will combine the capabilities of its adviser network with LearnVest’s digital advice delivery technology.
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Northwestern Mutual announced it will acquire LearnVest, a provider of online financial planning and client experience technology. 

The partnership joins Northwestern Mutual’s financial professionals and products with LearnVest’s technology and financial planning platform.

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John Schlifske, Northwestern Mutual chairman and CEO, said there has “been a gap between what consumers want and what the financial industry has been able to offer.” He suggests Northwestern Mutual will fill that gap by taking more clients “from start to finish, addressing all parts of the planning equation, and to be a partner at the center of their financial lives through all stages.”

Alexa von Tobel, founder and CEO of LearnVest, says the organization will continue to offer unbiased and affordable financial planning, now with the support and resources of Northwestern Mutual. The firm will continue serving the retirement planning marketplace in two ways—by partnering with providers, such as Fidelity and Empower Retirement (formerly Great-West), and by working directly with employers (see “A Financial Wellness Program With a Human Touch”).

Von Tobel explains that when an employer decides to partner with LearnVest for an employee financial wellness program, LearnVest creates a cobranded Internet landing page specifically for that employer’s employees. A kickoff campaign from LearnVest makes employees aware of the new benefit—which includes posters, webinars, an online Q&A, and sending a financial planner to the employer.

Employees can go to the employer-branded LearnVest portal and schedule a session with a dedicated financial planner. They answer a profile telling their financial concerns and set up a phone call with their assigned planner. “The planner will provide the employee with a 360-degree financial plan,” von Tobel says. “We tell folks what they should be doing, and the follow through is usually high.”

Dedicated advisers, according to Schlifske, are a key part of the long-term success of a financial security plan. “It’s all about the client relationship—that’s what sets us apart,” he explains. “We know from experience that consumers want a trusted, experienced professional who can provide the best product solutions, planning process and technology platforms.”

The combination of Northwestern Mutual and LearnVest brings additional capabilities consumers want, the firms suggest, especially in the areas of easy-to-use financial planning technology and holistic financial education.  

“Over time, our dynamic planning platform will be a real differentiator in the industry,” adds von Tobel, who will remain CEO of LearnVest and be chairman of the LearnVest board.  “With Northwestern Mutual’s financial backing, we can quickly empower millions of Americans and the dedicated professionals who serve them. We’re excited about truly transforming how households plan for and achieve financial security, and we will continue to unleash our innovation over the coming years.”

Northwestern Mutual has more than 4.2 million clients served by a field force of about 16,000 advisers and representatives. LearnVest currently has about 1.5 million users, over 25,000 clients under LearnVest at Work (the direct to employer product), and close to 10,000 premium clients. As the companies combine, they will seek to expand both customer bases.

The companies did not disclose financial terms. At the time of closing, LearnVest will become a wholly owned subsidiary of Northwestern Mutual and maintain its own brand and offerings. 

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