PLANSPONSOR - August/September 2020 - 37

TOTAL BENEFITS
whether it's retirement-income counseling,
access to annuities or doing financial
planning for them. "
The trend of advisers adding
services also may reflect a shift at many
employers to outsourcing.
" If it's not making their company
money, they're looking to outsource it.
Whether it's handling retirement, health
care or student loan repayment programs,
or other HR functions, they're looking to
outsource all of that and just get back to
running the business, " Greenleaf says.
She notes that, at smaller companies,
HR acts as a generalist, relying on
its outside partners to be the experts. But
even larger companies that do have HR
specialists typically do not have a retirement
plan specialist. " The adviser is
viewed as their prudent man, " she says.
Nearly nine in 10 plan sponsors
evaluate their advisers at least annually,
according to a new study from Fidelity,
meaning advisers must be able to show
how they are increasing their value.
" The world is evolving so rapidly, and
advisers recognize they have to expand
their offerings to make them less of a
commodity, " says Phil Chisholm, vice
president, adviser research and insights at
Fidelity in Smithfield, Rhode Island. " Plan
sponsors have to squeeze every ounce of
benefit out of the dollars they spend. "
HR's Changing Role
That many companies have transitioned
to a fully remote workforce has also
changed the role of HR and the relationship
that employees have with the department.
This has provided an opportunity
for advisers to assist.
" HR is no longer easy for employees
to access by knocking on their door to have
a conversation with them, " Greenleaf says.
" So, HR is more comfortable referring
them to a trusted adviser. "
There are also more nuances to
the questions participants might have,
depending on their current financial
circumstances. Some participants, for
example, might be considering taking a
Coronavirus Aid, Relief and Economic
Security (CARES) Act distribution to
pay medical bills or to cover lost income,
while others might be looking for advice
on how to best use the money they have
saved by not traveling or eating out for
the past six months.
Besides having functions outsourced,
human resources has evolved at many
companies to take a more comprehensive
approach, including to employee wellness.
The folks who work in such departments
are looking for advisers who can
support a holistic strategy, Bryant says.
" There's been a breakdown of silos
between benefits and retirement, " says
financial lives. Advisers can offer a more
personalized approach, and wellness is a
gateway, a means of engagement to get
employees involved, no matter where they
are in their saving or their lifestyle. "
A benefits package for a company
with a mostly younger workforce, for
example, might include student loan
repayment and emergency fund sidecar
accounts, while plans with primarily
older participants might consider adding
an in-plan annuity option.
" Understanding employee demographics
and how their utilization of
benefits might look is where the adviser
can really add value and help with the
process, " Chisholm says. " It's great that
A plan sponsor yet to have
such discussions with its adviser
should consider asking what
additional services he offers
that it does not already use.
Kevin Murphy, head of workplace retirement
sales at Franklin Templeton in New
York City. " I don't think, in the past, HR
would have gone to a 401(k) adviser for
benefits help, but this holistic approach
has made for a really friendly environment
for those conversations to happen and for
advisers to bring new, creative ideas. "
A plan sponsor yet to have such
discussions with its adviser should
consider asking what additional services he
offers that it does not already use, though
this may require adding onto or replacing
existing contracts. Those conversations
not only address the changing needs of the
sponsor but of the participants, too.
" We're in an age of personalization
and consumerism, " Murphy says. " Most
people want help with their finances but
don't know where to go for it. The workplace
is the epicenter for most workers'
an employer offers a full suite of benefits,
but if people aren't using them,
those dollars are wasted. "
An Opportune Time
Improving benefit use, of course, requires
education. That is particularly important
now, as the financial markets' upheaval,
and disruptions in the broader economy,
may be providing a window where participants
are uniquely receptive to information
and advice about their benefits.
Assisting with such education is
another area in which advisers now take
a larger role, says Beth Garner, employee
benefits plan audits national practice
leader at BDO in Atlanta. " Besides
assisting with the messaging itself and
offering digital tools to participants,
advisers can track how [those] communications
perform. " -Beth Braverman
PLANSPONSOR.COM August - September 2020 37
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