PLANSPONSOR - February/March 2020 - 48

PLAN PROFILE
A Digital Transformation
B
This plan sponsor turns up the volume on engagement
est Buy, a seller of technology
products, services and solutions,
headquartered in Richfield,
Minnesota, was founded in 1966 as
an audio specialty store. Today, the
company generates nearly $43 billion
annually. It has physical-i.e., more
than 1,200 stores-and online operations
in the U.S., Canada and Mexico.
Deb Dennin, senior manager,
retirement and wealth benefits for
the company, has been in her role
for six years and is primarily responsible
for managing the 401(k) plan,
deferred compensation programs and
employee stock purchase program.
In October 2017, Best Buy hired
Voya to administer its 401(k) plan.
" The plan had healthy average participation
and deferral rates, for a retail
company, but we wanted to ensure
that all eligible participants are aware
of all available benefits and offerings,
Deb Dennin, senior manager, retirement and
wealth benefits at Best Buy
to help them achieve greater financial wellness, " Dennin says.
Automatic programs were not part of the company's plan
design, so increasing engagement digitally was a logical strategy.
Changes to increase engagement included letting employees
enroll in the plan immediately as a new hire. " It's a time that
encourages action, otherwise we could lose them, " she says. All
new employees, whether part time, full time, seasonal, salaried
or hourly, may participate. Many are students. " We know they
won't be with us for their full careers, but we still offer them the
opportunity, " Dennin says.
Best Buy also implemented e-statements. Participants must
actively engage in the website to view their statements unless
affirmatively electing to receive them in the mail. To date, 23,600
participants have opted to receive communications electronically.
As a further measure, the company activated an open enrollment
campaign during National Retirement Security Week,
sending an email to all nonparticipants. The communication
SNAPSHOT
PLAN SPONSOR
Best Buy Co. Inc.
Richfield, Minnesota
KEY PLAYER
Deb Dennin, senior manager,
retirement and wealth benefits
PLAN
401(k)
included a call to action, linking
to Best Buy's participant website.
Additionally, Dennin says, each year,
upon completion of open enrollment
elections, employees receive a link to
the plan website, encouraging them to
review their 401(k) elections or enroll
if they do not participate. " For that
campaign alone, 3,400 new participants
joined the plan, " she says.
The company leveraged multiple
participant digital email journeys on
the topics of investment diversification,
beneficiaries, financial wellness
and re-start savings-a campaign for
participants who had stopped contributing-urging
anyone affected to
act by driving them to the website.
According to Jeff Little, a Voya participant
engagement consultant, in the
fourth quarter, the company completed
a specialized incentive campaign for
those without a beneficiary on file.
Participants adding a beneficiary were entered in a drawing for
a Visa gift card. " We normally see a take-action rate of 2% to 3%,
but for this prize, 20% of people took action. " A similar program
encouraged workers to personalize their account information-a
step that showed them their potential retirement income and how
to make the most of available tools, he says.
Plan data show a significant increase in online engagement,
since the addition of Voya's proprietary participant website experience,
its financial wellness assessment and its guided education
offering. For example, 45% of participants have engaged with the
myOrangeMoney tool, with 11% taking action afterward. This
means they increased their savings rate, changed a fund allocation,
rolled money into the plan or used managed account services.
The changes overall have resulted in a 19% jump in total
money saved among the 6,400-plus actively contributing
employees who enrolled since the recordkeeper change-a testament
to the power of digital engagement. -Judy Faust Hartnett
NUMBER OF
PARTICIPANTS
118,000
PARTICIPATION
RATE
35%
TOTAL
ASSETS
$2b
AVERAGE
DEFERRAL RATE
7%
48 PLANSPONSOR.COM February - March 2020
Art by Chris Buzelli
http://www.PLANSPONSOR.COM
PLANSPONSOR - February/March 2020

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