Elevate Your 401(k) Client Experience

Days 31-60 | Part 2 of 3

Congratulations, your hard-earned 401(k) client is onboarding smoothly. During the first 30 days, you laid the groundwork for success by organizing fiduciary files and shorting through digital clutter. As the plan hero, you set the foundation for a trusted relationship.

Transitioning into days 31-60, the journey evolves into delivering on plan services and educating employees. This phase marks a pivotal juncture where insights gathered in the initial month manifest into actionable strategies and solutions. The focus now shifts towards crafting and implementing a customized 401(k) experience that resonates with your clients, participants, and continues to build confidence.

Enhance the plan

Welcome to the second phase of this journey, here's how you can continue to elevate your client onboarding experience, ensure a seamless transition, and establish long-term success.

Changing the investment menu

Review and make the necessary investment changes. Whether it's adding or removing specific funds, building managed accounts, adding in-plan income solutions, or adjusting the investment strategy, ensure that these changes align with appropriate risk tolerances, company goals, and participants’ best interests.  Optimizing an appropriate investment lineup is critical for driving successful outcomes for plan participants.

Evolving the plan design with a TPA partner

Next, work closely with a Third-Party Administrator (TPA) to craft an optimized plan. Evaluate various plan structures, features, and compliance requirements to design a plan that is both efficient and tailored to your client’s unique needs. Ensuring regulatory compliance and operational efficiency will build a strong foundation for the plan's success.

That could include stretching the match, vesting schedules, auto-enrollment, auto-escalation, profit sharing, and other company specific attributes that align with employer and employee benefit goals.

Solving plan problems

Address any existing plan issues such as 360-payroll uploads, cybersecurity risks, and concerns with the investment lineup. This involves collaborating with the TPA, IT department, and other relevant stakeholders to implement robust solutions. By resolving these issues, you can streamline plan administration and enhance overall plan security.

Engaging with Recordkeepers

Recordkeepers are our friends. Effective communication with the recordkeeper is essential for understanding their capabilities and how they can support the plan and its participants. Schedule conversations to learn about their services, technology, and processes, and determine the next steps. Ensuring alignment between the recordkeeper and your client's goals is vital for smooth plan operation.

If the plan is with a recordkeeping partner you’re unfamiliar with, this is a prime opportunity to reach out to them and learn more about their offering.

Involve employees

Introduce yourself and your company to build rapport and trust. Cover the fundamentals of the 401(k) plan, investment options, contribution strategies, and the importance of starting early and contributing consistently.

Educating employees

Once the plan’s core menu is established, your focus should shift to educating plan participants. It's essential that participants understand the basics of the 401(k) plan, its benefits, and how it aligns with their financial goals. Empowering them with this knowledge enables better decision-making regarding their retirement savings.

Tailoring educational sessions

Today’s participants like to learn in many ways, that could include traditional in-person workshops or more digital solutions like videos, online tools, and podcasts. Consider the employee demographics and craft an educational campaign that meets participants where they are and delivers information in the manner they prefer.

This thoughtful approach will help boost participant satisfaction and could enhance your wealth management service opportunities. Early access to participants can foster and convert into long-term client loyalty.

Adding fun and engagement

To make the educational experience more enjoyable and memorable, incorporate interactive elements like audience games. Offering prizes such as merchandise (e.g., Stanley cups) for game winners can enhance engagement. Additionally, sponsoring food and drink refreshments can create a positive and relaxed atmosphere, making the sessions more appealing.

Continuous communication and support

Good news is good, bad news is fine, surprises are bad. Especially true at the beginning of a new relationship, it’s always better to over-communicate than to under-communicate.

Maintaining open lines of communication with your clients throughout the plan development and implementation phase is crucial. Regular updates and check-ins keep clients informed about progress and any adjustments. Utilize these opportunities to address any questions or concerns they may have, reinforcing their confidence in the plan. Offer ongoing support and resources to help both sponsors and participants navigate the 401(k) landscape.

The second month of your 401(k) adviser process focuses on transforming foundational knowledge into a tangible and actionable plan. By emphasizing customization, continuous communication, and participant education, you can create a retirement plan that not only meets but exceeds client expectations.

By making the plan development and implementation process engaging and comprehensive, you pave the way for long-term success, raving client fans, and happy employees.

Thanks for reading & Happy Marketing!