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Financial Well-Being = Mental Well-Being For Employees

LJ Morris

Keeping employees focused and productive can be a challenge for many companies. The amount of research that’s been conducted around this topic has grown exponentially over the past decade, and for good reason. Without a doubt, when employees feel more at ease and unburdened by their personal financial situation, they will be more focused on their work duties, and with that, have their heads in the game.

Financial stress is disruptive… and not for the better

Through a 2016 survey, PwC uncovered startling results regarding financial stress. The findings revealed that 52% of employees claim to be stressed and preoccupied about their financial state, with 45% claiming their finances cause them the most overall stress in their lives.

According to financial guru, Dave Ramsey, over 55% of employees in the United States are disengaged in the workplace due to some level of financial stress. Some researchers believe this equates to approximately 20 hours of unproductive and wasted hours per month. The repercussions of low productivity and how this impacts an organization’s bottom line is deleterious, but understanding the many causes that come into play when calculating the disruptive nature of financial stress is more complicated.

Disengaged employees are less likely concerned about customer satisfaction, show less loyalty to their employer, experience higher healthcare costs related to stress-related illness, and are more likely to be absent from work. In addition, the burden of financial stress can be something people carry with them as they enter into the workforce, and not something that manifests due to a life-long habit of poor money management or misfortunate circumstances.

According to a 2013 study in the publication Anxiety, Coping and Stress, researchers found that recent college grads with greater perceived financial stress experienced more anxiety and depression as compared to their counterparts who were not saddled with financial burdens. In 2014, seven out of ten college seniors exited school with an average of $28,400 in student debt, as reported by Project on Student Debt. These findings equate to the condition of new talent entering the workforce and the state of emotional distress they experience before even starting their career pursuits.

On the opposite end of the spectrum from new people entering the workforce are the employees who cannot afford to retire. A recent Charles Schwab survey of 1,000 401(k) participants nearing retirement age reported that 24% of respondents admit to being stressed about their retirement finances more than their job security. This has led many people to reconsider their retirement age and continue working to a much older age than anticipated to qualify for a bigger payout of their social security benefits.

Help is on the way

As many companies today offer employees physical wellness programs, incorporating financial responsibility training is also a doable offering. “Personal finance is 80% behavioral and 20% head knowledge,” states Dave Ramsey. Ramsey believes this is due to people simply not understanding how to manage their money, and further, knowing very little about making the money they do have work in their favor.

This is where education comes into play. With the assistance of organizations that specialize in employee wellness and benefits plans, employers can offer informative programs as an ongoing and informal learning process. One thing companies need to understand is that financial stress can occur for many different reasons. What may be the cause of financial stress for one person may not be the same stressor for someone else. Illness, divorce, unforeseen situations like personal injury, or the responsibility of primary caregiving to an aging parent are not situations people necessarily prepare for, but once they occur, financial stress usually follows.

Regardless of the cause, education is still the key here. Along with education comes confidence. When people feel more in control of their financial state, they will feel good about other things in their life and respond accordingly.

Employers can also incentivize employees to participate in financial wellness programs by offering company-paid inducements such as company-wide financial retreats, lunch-and-learns, or bonus days to participate in financial learning classes off the work premises.

Integrating programs that instruct your employees on various financial savings and financial protection techniques with emphasis on the benefits of why it’s in their best interest to participate shows that employers have a bona fide interest in their most precious asset: their human capital.

For more on keeping your employees engaged and balanced, see Employee Benefits In 2016: Perks Or Expectations?

Photo Credit: stovmasyan89 via Compfight cc

The post Financial Well-being = Mental Well-being For Employees appeared first on TalentCulture.

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Removing Bias From Digitization Brings Economic Opportunity For All

Shelly Dutton

Conventional wisdom tells us that all of us encounter change. Some people fully embrace it as a new beginning and use it to create something positive or even life-changing. Others fight it along the way. And a vast majority accept the change – but only on their terms.

No matter where you fall, it is increasingly difficult to ignore how various faction of our global society views change.

Populist movements are emerging all over the world, fueled by populations that are not economically uplifted by the opportunities of the digital economy. And one look at news headlines over the last decade justifies such sentiments. For example, many companies are focused on simplifying and shortening supply chains. Automation is making production location and outsourcing decisions no longer dependent on labor costs. The possibilities of 3D printing could potentially decrease the need to ship goods across long distances.

In a recent interview with Handelsblatt Global, Bill McDermott, CEO of SAP, acknowledged that more must be done to show how everyone – of any level of education, industry, and demographic – can fit in a world of globalization and digitization.

“Governments can no longer ignore them,” he observed. “Countries need to consider how to usher a large chunk of the workforce into a modern economy.”

Even though businesses are investing in technology to automate tasks that were formerly carried out by workers, McDermott believes that some jobs can never be improved by a machine or robot. However, political and business leaders still need to do more to alleviate fears of job loss and an unemployable future.

“Clearly, we are going need new forms of training and education, and companies can play an important role in that process,” McDermott shared.

Employees have a right to understand how technology will power a progression present work situation to a future of opportunity, promise, and prosperity. Businesses have an obligation to impart knowledge and guidance to their employees and a clear, sustainable, and achievable road map of their digital strategy. Ultimately, leadership teams need to side with their workforce and do everything in their power to help ensure their success.

Once the executive team and its employees of all levels and responsibilities are engaged in the business’ digital direction, the future is full of immense potential. McDermott uses his own workforce as an example of the possibilities, “We have 22,000 brilliant developers, the greatest in the world. We just needed to unleash their potential and set them on the topics that matter most. We don’t need to buy any small startup to reach our goals.”

For the entire interview with Bill McDermott, read the Handelsblatt Global article, “Computers Don’t Have a Bias.”

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Refugee Code Week: Programming A Future Perspective

SAP News Center

Refugee Code Week opens up new perspectives for refugees and displaced youth throughout the Middle East.

“Come in!” Nisreen’s father says cheerfully, as he invites us in from the dusty street. Inside his small house, the air is cool and smells of fresh tea. The tiny rooms are clean and lovingly decorated. Grandmother and niece are already waiting for us in the living room. It looks almost like their home in Syria did before the war, they tell us. Outside, laughing children play tag. It’s a little paradise they have created for themselves here.

But not all is as it seems at first glance: Nisreen Abu-Salou, 37, is a Syrian refugee, and the walls of the house are made of sheet metal. She and her father live there alone, her mother having since returned to Syria to Nisreen’s brothers and sisters. They have no idea how the rest of the family is doing. Contact with the outside world is only possible sporadically. Nisreen’s new “home” is Al Zaatari, a refugee camp in Jordan. It is the largest refugee camp in the Middle East, and with 80,000 inhabitants, the second largest in the world.

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Nisreen Abu-Salou with her family

Back in Syria, she worked as a teacher and taught children from grade five up to graduation. Her curiosity for all things new was her constant companion. Her eyes light up just reminiscing about it. And now she has the chance to learn programming.

Nisreen has been taking part in Refugee Code Week, an initiative sponsored by SAP in collaboration with the United Nations Commission for Refugees (UNHCR) and Galway Education Center. The aim of the project is to introduce refugees in the Middle East to the basics of computer programming. The courses were held in Jordan, Egypt, Lebanon, and Turkey.

Skills for now and the future

There are currently millions of refugees of all ages stuck in camps throughout war zones and hosting countries. Despite their wide range of skills and qualifications, most of these people have no choice but to idle away the day. For children, the biggest issue is the lack of access to education, especially beyond the elementary level.

The IT industry in this region, on the other hand, needs highly trained specialists to drive digital transformation and help secure the region’s long-term economic growth. Saudi Arabia alone already had a shortfall of some 30,000 IT professionals. Meanwhile, it is estimated that businesses and governments will invest around $260 billion in IT in the Middle East and Africa (MEA) in 2016 alone.

So what could be more obvious than to tap that tremendous motivation of the refugees – especially of the girls – and invest in a better future, right here and now?

The results

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Together with 33 partners, this event was able to equip 10,200 participants with coding skills. This infographic gives a detailed overview of the achievements during Refugee Code Week 2016.


The impact of the initiative is particularly evident in the camps nearest the Syrian border in Jordan. Take Amnah, for example, a 12-year-old girl also from the Al Zaatari camp. She says that learning with the special Scratch software is very easy “and a lot of fun, too.”

Some women in the program are students; others are teachers, such as 21-year old Rana. She sees this project as a unique opportunity for girls to shape their future and to develop a perspective, even in a seemingly hopeless environment such as theirs. Participants were taught in groups aged 8 to 11 years and 12 to 17 years. Free online courses were also offered to those who were unable to attend on-site.

Training for hundreds of teachers

The students didn’t just benefit from the pedagogical and didactical quality of the Scratch teaching program, which is very practice-oriented and thus capable of maintaining the learners’ enthusiasm even through the phases of dry theory. They also benefited from the high level of motivation of their teachers. 2,439 teachers have been trained by experts and supported by numerous volunteers. And they are not only coming from the refugee communities; volunteers also come from the host countries who will also forward their new digital knowledge to local youth.

“Hence the importance of ‘Train-the-Trainer’ events, where master instructors empower both refugees and local youth to become the next expert coding teachers,” explains Claire Gillissen-Duval, director of SAP Corporate Social Responsibility for EMEA and global lead of Africa and Refugee Code Weeks. “Leveraging freely accessible materials and teaching tools, Train-the-Trainer events provide a sound, replicable structure for inter-group knowledge sharing, unlocking the potential of people to serve as resources for each other.”

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Children living at Al Zaatari

The entire model builds on the success of Africa Code Week. In its second year now, the event, together with hundreds of partners, passed on coding skills to 427,000 children, teenagers, and young adults in Africa. Many of those participants now have career perspectives they never would have dreamed possible before. This is also the experience of the 10,200 participants of Refugee Code Week: Whether as employees in companies or as freelancers: their skills are in demand and can be used anywhere in the world – especially, of course, in their home countries, where they hope to be soon able to return and support economic recovery.

Direct from school to career

For some of the Refugee Code Week participants, the dream of a career becomes true even sooner. The 90 best “Master Class” students are selected to participate in a special “bootcamp” training program from non-profit partner RBK (formerly ReBootKamp). Of these, at least 30 can look forward to a job offer from the partner network upon completion.

Fatima Himmamy has already participated in a RBK training. The 26-year-old from Aleppo, who has already completed a four-year computer studies program, describes the initiative as one of the best experiences of her life. Being a teacher in the project is much more than just a job to her, though. It has given her a different perspective and has changed her life in the camp.

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Fatima Himmamy

The project has given her new drive, and lots of satisfaction, because passing her knowledge to other women and girls is a cause that’s particularly dear to her heart. “I love what I’m doing here,” she says.

Refugee Code Week demonstrates how people – even those in need – can turn potential opportunities into a better future. In the end, it all comes down to determination. And when it comes to determination, the participating girls and women are in a class of their own.

For more stories of how technology education can turn young lives around, see Bringing New Educational Opportunities To Rwandan Youth.

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How Emotionally Aware Computing Can Bring Happiness to Your Organization

Christopher Koch


Do you feel me?

Just as once-novel voice recognition technology is now a ubiquitous part of human–machine relationships, so too could mood recognition technology (aka “affective computing”) soon pervade digital interactions.

Through the application of machine learning, Big Data inputs, image recognition, sensors, and in some cases robotics, artificially intelligent systems hunt for affective clues: widened eyes, quickened speech, and crossed arms, as well as heart rate or skin changes.




Emotions are big business

The global affective computing market is estimated to grow from just over US$9.3 billion a year in 2015 to more than $42.5 billion by 2020.

Source: “Affective Computing Market 2015 – Technology, Software, Hardware, Vertical, & Regional Forecasts to 2020 for the $42 Billion Industry” (Research and Markets, 2015)

Customer experience is the sweet spot

Forrester found that emotion was the number-one factor in determining customer loyalty in 17 out of the 18 industries it surveyed – far more important than the ease or effectiveness of customers’ interactions with a company.


Source: “You Can’t Afford to Overlook Your Customers’ Emotional Experience” (Forrester, 2015)


Humana gets an emotional clue

Source: “Artificial Intelligence Helps Humana Avoid Call Center Meltdowns” (The Wall Street Journal, October 27, 2016)

Insurer Humana uses artificial intelligence software that can detect conversational cues to guide call-center workers through difficult customer calls. The system recognizes that a steady rise in the pitch of a customer’s voice or instances of agent and customer talking over one another are causes for concern.

The system has led to hard results: Humana says it has seen an 28% improvement in customer satisfaction, a 63% improvement in agent engagement, and a 6% improvement in first-contact resolution.


Spread happiness across the organization

Source: “Happiness and Productivity” (University of Warwick, February 10, 2014)

Employers could monitor employee moods to make organizational adjustments that increase productivity, effectiveness, and satisfaction. Happy employees are around 12% more productive.




Walking on emotional eggshells

Whether customers and employees will be comfortable having their emotions logged and broadcast by companies is an open question. Customers may find some uses of affective computing creepy or, worse, predatory. Be sure to get their permission.


Other limiting factors

The availability of the data required to infer a person’s emotional state is still limited. Further, it can be difficult to capture all the physical cues that may be relevant to an interaction, such as facial expression, tone of voice, or posture.



Get a head start


Discover the data

Companies should determine what inferences about mental states they want the system to make and how accurately those inferences can be made using the inputs available.


Work with IT

Involve IT and engineering groups to figure out the challenges of integrating with existing systems for collecting, assimilating, and analyzing large volumes of emotional data.


Consider the complexity

Some emotions may be more difficult to discern or respond to. Context is also key. An emotionally aware machine would need to respond differently to frustration in a user in an educational setting than to frustration in a user in a vehicle.

 


 

download arrowTo learn more about how affective computing can help your organization, read the feature story Empathy: The Killer App for Artificial Intelligence.


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About Christopher Koch

Christopher Koch is the Editorial Director of the SAP Center for Business Insight. He is an experienced publishing professional, researcher, editor, and writer in business, technology, and B2B marketing. Share your thoughts with Chris on Twitter @Ckochster.

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In An Agile Environment, Revenue Models Are Flexible Too

Todd Wasserman

In 2012, Dollar Shave Club burst on the scene with a cheeky viral video that won praise for its creativity and marketing acumen. Less heralded at the time was the startup’s pricing model, which swapped traditional retail for subscriptions.

For as low as $1 a month (for five two-bladed cartridges), consumers got a package in the mail that saved them a trip to the pharmacy or grocery store. Dollar Shave Club received the ultimate vindication for the idea in 2016 when Unilever purchased the company for $1 billion.

As that example shows, new technology creates the possibility for new pricing models that can disrupt existing industries. The same phenomenon has occurred in software, in which the cloud and Web-based interfaces have ushered in Software as a Service (SaaS), which charges users on a monthly basis, like a utility, instead of the typical purchase-and-later-upgrade model.

Pricing, in other words, is a variable that can be used to disrupt industries. Other options include usage-based pricing and freemium.

Products as services, services as products

There are basically two ways that businesses can use pricing to disrupt the status quo: Turn products into services and turn services into products. Dollar Shave Club and SaaS are two examples of turning products into services.

Others include Amazon’s Dash, a bare-bones Internet of Things device that lets consumers reorder items ranging from Campbell’s Soup to Play-Doh. Another example is Rent the Runway, which rents high-end fashion items for a weekend rather than selling the items. Trunk Club offers a twist on this by sending items picked out by a stylist to users every month. Users pay for what they want and send back the rest.

The other option is productizing a service. Restaurant franchising is based on this model. While the restaurant offers food service to consumers, for entrepreneurs the franchise offers guidance and brand equity that can be condensed into a product format. For instance, a global HR firm called Littler has productized its offerings with Littler CaseSmart-Charges, which is designed for in-house attorneys and features software, project management tools, and access to flextime attorneys.

As that example shows, technology offers opportunities to try new revenue models. Another example is APIs, which have become a large source of revenue for companies. The monetization of APIs is often viewed as a side business that encompasses a wholly different pricing model that’s often engineered to create huge user bases with volume discounts.

Not a new idea

Though technology has opened up new vistas for businesses seeking alternate pricing models, Rajkumar Venkatesan, a marketing professor at University of Virginia’s Darden School of Business, points out that this isn’t necessarily a new idea. For instance, King Gillette made his fortune in the early part of the 20th Century by realizing that a cheap shaving device would pave the way for a recurring revenue stream via replacement razor blades.

“The new variation was the Keurig,” said Venkatesan, referring to the coffee machine that relies on replaceable cartridges. “It has started becoming more prevalent in the last 10 years, but the fundamental model has been there.” For businesses, this can be an attractive model not only for the recurring revenue but also for the ability to cross-sell new goods to existing customers, Venkatesan said.

Another benefit to a subscription model is that it can also supply first-party data that companies can use to better understand and market to their customers. Some believe that Dollar Shave Club’s close relationship with its young male user base was one reason for Unilever’s purchase, for instance. In such a cut-throat market, such relationships can fetch a high price.

To learn more about how you can monetize disruption, watch this video overview of the new SAP Hybris Revenue Cloud.

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