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Help your employees bringtheir best to work. Every day.Understanding the impact of employee health and wealthon your business success

There’s a strong connectionbetween overall health,financial wellness and productivity.11 Manulife/Ipsos Reid Health and Wealth – Wellness study conducted by Ipsos Reid, February 20142

Your company’s success depends on theengagement and productivity of youremployees. An engaged employee hasthe energy, attitude and confidence tobring their best to work every day andto help your business thrive.To be their best, employees need to be happy andhealthy – both physically and psychologically. Through ourground-breaking research, our goal is to help employersof all sizes come to a deeper understanding of theconnection between employee health, wealth and theircompany’s bottom line.In 2014, we asked research firm Ipsos Reid to find outwhat working Canadians had to say about their financialsituation, physical and mental health and how engagedthey were at work.2HERE’S WHAT WE FOUND:There’s a strong relationship between physicaland emotional health, personal financial wellnessand productivity.Compared to the financially prepared, Canadianswho are financially unprepared are twice as likelyto be distracted and have difficulty focusing at work.The financially prepared are more likely to be inbetter physical health than those who worry abouttheir finances.We’ve updated these findings for 2015 to help broadenour understanding of the impact of employee health andwealth on business success.Individuals with both a workplace benefits and retirementsavings plan are 50% more likely to be financially preparedthan those without plans.22Manulife/Ipsos Reid Health and Wealth – Wellness study conducted by Ipsos Reid, February 20143

From our research we identified twodistinct groups: the financially unpreparedand the financially prepared.THE FINANCIALLY UNPREPARED: Have no formal financial plan Have high debt levels and report minimal savings Are not saving for retirementTHE FINANCIALLY PREPARED: 4Have a financial planHave borrowed appropriately and have a planfor managing debtSave sufficiently for retirement througha retirement savings plan

Financial wellnessThe link between personal finances and your company’s bottom lineOur new research supports the finding that an employee’sfinances are likely their biggest source of stress. This stressnot only affects employee health, it can also impact timeon the job and productivity when they come to work. Andthis can impact your company’s profitability.28%69%4XMOREYou can help your employees alleviate this stress. Groupretirement plans can be a more tax-efficient way of investingin your employees than salary increases or bonuses. What’smore, group benefits can help employees offset the costs ofhealth care, dental care and prescription drugs.of Canadians say they’refinancially prepared.387%of employees with a group plan aremore likely to recommend their employerto friends.5Compared to the financially prepared, thefinancially unprepared are 69% more likelyto be living paycheque to paycheque.464%of employees value a group retirementplan as much as extended vacation time.536%of employees would choose employercontributions to a group retirement plan astheir top desired benefit, yet only 6% ofemployers are aware of this fact.5The financially prepared are almost4X more likely to work with a financialadvisor than the unprepared.4When you invest in the financial needs of your employees, you canhelp improve their overall health and productivity at work whichmeans you’re also investing in your company’s success.Manulife’s Financial Wellness study – benchmark 2015 conducted by Environics Research Group, July 2015 Manulife/Ipsos Reid Health and Wealth study conducted by Ipsos Reid, March 20155 SMEs Employees and SMEs Employers opportunities – Manulife conducted by Environics Research Group, December 2014 - January 2015345

Health wellnessHealthier employees are more effective employeesYour employees’ health can have a direct impact on yourbottom line – their lack of focus at work, absenteeism,stress or related disabilities, all affect your profitability.60%Yet our research shows 60 per cent of the financiallyunprepared delayed or didn’t obtain various services aimedto improve their health due to financial constraints.6ADDITIONAL FINDINGS INCLUDE:90%Almost 90% of employers say that stress is the leadingcause of mental health concerns in the workplace.870%Companies that take action and offer work-life balanceservices are almost 70% more likely to receive fewermental health-related claims.93XTHE FINANCIALLY UNPREPARED: Get almost 24% less exercise than the financially preparedand are almost 25% less likely to say they’re very healthy.7Are 2X as likely to say they’re distracted at work worryingabout their finances.7THE FINANCIALLY PREPARED: Are almost 25% more likely to identify themselves asbeing very healthy compared to those unprepared.7Are 2.5X more likely to manage and maintain their healthcompared to the financially unprepared.6Manulife/Ipsos Reid Health and Wealth study conducted by Ipsos Reid, March 2015Manulife/Ipsos Reid Health and Wealth – Wellness study conducted by Ipsos Reid, February 20148 Ceridian Workplace Wellness Survey (2013)9 SALVEO, Alain Marchand and Pierre Durand, September 2009 - May 2012676Companies with an integrated approach to targetingworkplace stressors and their effects on employees arealmost 3X more effective in preventing absenteeismdue to mental health issues.9Companies willing to support theiremployees’ health and wellness can helpreduce claims, absenteeism and createa healthier and happier workplace.

Engagement and productivityEngaged employees are more productive and loyal employeesAn employee’s ability to focus, their productivity andengagement at work are closely linked to their healthand financial wellness.Offering both a group benefits and retirement solutioncan positively impact your employees, and ultimately,your bottom line. -16%In fact, employees who are financially unprepared are16 per cent less likely to say they are productive on the jobthan their financially prepared counterparts.10THE YEARLY COST OF LOST PRODUCTIVITYFor an employee who earns 50,000 annually,a 16 per cent drop in productivity equates to 8,000 paidfor minimal work: 1 employee 8,000 10 employees 80,000 100 employees 800,000Engaged, productive, loyal employees are vital to yourcompany’s success. Yet a large number of employersreport that maintaining employee engagement andretention are challenges for their businesses.11101186% of employees whose employers havea group retirement plan agree it increases retention.1182% of employees whose employers havea group retirement plan agree it increases loyalty.1160% of employees whose employers havea group retirement plan agree it increases performance.11Employees are less likely to leavecompanies that offer group benefit andretirement plans.11Manulife/Ipsos Reid Health and Wealth – Wellness study conducted by Ipsos Reid, February 2014 SMEs Employees and SMEs Employers opportunities – Manulife conducted by Environics Research Group, December 2014 - January 20157

The Manulife solutionEMPLOYEEManulife can support your companywith the tools, strategies andexperience you need to help youremployees bring their best to work.EMPLOYEE WEALTH 8Comprehensive and flexible group retirement solutionsyour employees will value.A range of investment options and embedded solutions tohelp members preserve and grow wealth over time.Education and guidance, from enrolment to retirement,to help engage your employees in their retirement plan,including the award-winning Steps Retirement Program that helps members set retirement goals and reach them.User-friendly tools and mobile apps to help your employeesassess their finances, understand their options and takecontrol of their financial future.

EMPLOYEE HEALTH Comprehensive and flexible group benefits plans, includingpharmacy benefits, health and dental care.Short- and long-term disability insurance that can provideemployees with income replacement should they becomedisabled due to an injury or an illness.Group critical illness benefits to provide a non- taxablelump- sum payment following diagnosis of acovered illness.Employee and Family Assistance Programs to helpemployees manage stress and achieve work-life balance.Look to Manulife forhealth and wealth solutionsIf you’re looking for ways to help your employeesbring their best to work – every day – turnto Manulife for forward-thinking health andwealth solutions.Our innovative and comprehensive approach toproviding group benefits and retirement solutionscan help your company make the connectionbetween physical, emotional and financial healththat can have a positive effect on your employees,your brand and your bottom line.Health Service Navigator that can help employees steertheir way through the health-care system and give themaccess to world-class doctors for second opinion.Information on how to detect the most common mentalhealth issues, and more, through our Workplace Solutionsfor Mental Health website.Online tools, such as the Health Risk Assessment to informand encourage your employees to lead healthier lifestyles.9

HEALTH AND WEALTH: MANULIFE'SEVIDENCE-BASED APPROACHManulife’s holistic and evidence-basedapproach to group benefits and retirement issupported by the following studies:Manulife/Ipsos Reid Health and Wealth – Wellness studyconducted by Ipsos Reid, February 2014Survey conducted for Manulife by Ipsos Reid with 2,003 employeesacross Canada to explore relationship between Canadians’ financialpreparedness, their health and productivity level on the job.Manulife/Ipsos Reid Health and Wealth study conductedby Ipsos Reid, March 2015Survey conducted for Manulife by Ipsos Reid with 2,010 employeesto further explore Canadians’ financial preparedness and howit affects their health and their workplace engagement andproductivity.Manulife’s Financial Wellness study – benchmark 2015A survey conducted by Environics Research Group on behalf ofManulife with 2,000 Canadians in July 2015 to take a deeper look atand assess Canadians’ overall financial preparedness.SMEs Employees and SMEs Employers opportunities –Manulife conducted by Environics Research Group,December 2014 – January 2015Surveys conducted for Manulife by Environics Research Groupwith 400 Small and Medium-sized Enterprises (SME) benefitsdecision makers and 1,000 SME employees in December 2014 andJanuary 2015 to position the value of retirement savings for bothemployees and employers when it comes to retention and attractionof talent and the cost associated to it, while tapping into theemployers’ profiles.SALVEO, Alain Marchand and Pierre Durand –September 2009 – May 2012Research study conducted jointly by the “Université de Montréal”,“Concordia University” and the “Université Laval”, under thesupervision of professors Alain Marchand and Pierre Durand of theSchool of Industrial Relations at the “Université de Montréal” with2,162 employees over a period of more than 2 years to determinethe impact of personal and working life factors on the mental healthof employees and analyze management practices having the greatestinfluence on workers’ mental health.10

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To learn more, talk to your Manulife representativeor visit manulifehealthandwealth.caHealth Service Navigator is offered through Manulife (The Manufacturers Life Insurance Company). Manulife, the Block Design, the Four Cube Design, and Strong Reliable Trustworthy Forward-thinking are trademarks of TheManufacturers Life Insurance Company and are used by it, and by its affiliates under license.GA4009E 03/16

Manulife/Ipsos Reid Health and Wealth - Wellness study conducted by Ipsos Reid, February 2014 11 SMEs Employees and SMEs Employers opportunities - Manulife conducted by Environics Research Group, December 2014 - January 2015 . while tapping into the employers' profiles. SALVEO, Alain Marchand and Pierre Durand - September 2009 - May .