PLANSPONSOR - December/January 2020 - 30

RESEARCH | 2019 PLANSPONSOR BEST IN CLASS DC PROVIDERS
MEGA MARKET: PLAN ASSETS >$1b
THE MEGA MARKET segment remains largely aspirational in
nature-a destination where all other plan sponsors can dream
of having enough assets and participants to capitalize on their
plan's scale and where recordkeepers leverage cost-saving technologies
to maintain the feeling of high-touch service while
improving margins. The reality is evidently somewhere in
between, as few providers are capable of meeting the needs of
mega-plan sponsors, and, of those that are able, not all do it well.
The biggest area of disappointment is related to sponsor technologies
and tools, as ratings in these categories were less than
half of the next lowest scores found anywhere else in the survey.
Industrywide frustration with access to plan analytics/benchmarking
and plan reporting options may be reaching the breaking
point as neither area had a positive net satisfaction rating.
Participant technologies-i.e., websites, online tools and
mobile apps-are also a point of concern, as scores were among
the lowest reported in the survey. Mismatched expectations likely
play a major role, especially given the importance of technology in
driving participant engagement. A similar example can be found
in the unusually high score (60.4%) given to on-site, in-person
participant support-something that would seem challenging,
given the large, often widely distributed nature of the workforce.
In the end, performance vs. expectations is likely the key driver
of satisfaction across this-and all-markets.
Top 5 Mega Market Providers
By Net Recommendation/Promoter Score
1 Charles Schwab
2 T. Rowe Price
3 Nationwide
4 Fidelity Investments
5 Empower Retirement
Net Recommendation Rate, 2015 - 2019
52.8%
45.6%
41.8%
40.4%
2015
2016
2017
2018
2019
Other providers and their recommendation percentage
listed in this market: Bank of America (41.7%); TIAA (30.0%);
Voya Financial (40.0%)
3 Empower Retirement
4 Voya Financial
5 T. Rowe Price
44.6%
Service Satisfaction for Top 5 Providers
Ordered by Net Recommendation/Promoter Score
= Best in Class
Plan Administration
1 Charles Schwab
2 Nationwide
3 T. Rowe Price
4 Voya Financial
5 Fidelity Investments
Technology
1 Nationwide
2 Charles Schwab
3 T. Rowe Price
4 Fidelity Investments
5 Empower Retirement
Participant Education
1 Nationwide
2 Charles Schwab
3 Fidelity Investments
75.0%
72.7%
70.0%
61.4%
45.8%
4 T. Rowe Price
5 Voya Financial
Sponsor Services
1 Charles Schwab
2 Nationwide
3 T. Rowe Price
4 Fidelity Investments
5 Bank of America
Investment/Fees
1 Nationwide
2 Charles Schwab
% >8 out of 10 # of s
91.7%
71.7%
70.9%
62.7%
60.4%
5
4
4
2
1
% >8 out of 10 # of s
4
4
5
1
4
60.7%
55.6%
50.8%
50.2%
46.5%
% >8 out of 10 # of s
80.4%
75.7%
63.0%
61.7%
54.1%
6
5
2
4
1
% >8 out of 10 # of s
100.0%
89.5%
75.0%
73.4%
70.8%
3
3
2
3
2
% >8 out of 10 # of s
87.8%
86.0%
72.6%
70.2%
69.4%
3
3
3
2
2
30 PLANSPONSOR.COM December 2019 - January 2020
http://www.plansponsordigital.com/plansponsor/december-january_2020/TrackLink.action?pageName=30&exitLink=http%3A%2F%2FPLANSPONSOR.COM
PLANSPONSOR - December/January 2020

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