Transitioning HR from Transactional to Strategic
“It was wonderful. It freed up my time and allowed me to focus more on employee relations issues that couldn’t be handled on the Internet.
It allowed me to do the projects that benefited employees in other ways than their traditional benefits, the warm and fuzzy piece that I know as a human resources professional is truly important.”
Source: Susan Staples, HR consultant on the use of an online benefits system. Cincinnati Business Courier
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The average small to mid-sized employer spends $750 per year per employee on routine administrative tasks and queries.
Source: Aeon Consulting
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MetLife found that 58% of employers state that financial “illness” plays a role in absenteeism and 78% said that concerns over financial problems while at work can have a negative impact on employee productivity.
Carried out correctly, financial education can have a beneficial effect on employee wellness.
Financial education programs have the potential to lower financial stress, reduce absenteeism, increase productivity and lead to a more loyal workforce.
Source: 2011 MetLife Study
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88% of small and mid-sized businesses are frustrated and overwhelmed by the paperwork and communication their benefits demand – Guideline Research
83% of employees would like their employers to offer more investment education and information to meet personal employee needs.
Source: Survey conducted by KRC Research and commissioned by Cigna Retirement & Investment Services. Summary made available by Plan Sponsor.com
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Helping employees better manage their work and personal lives can dramatically reduce their stress levels. The Journal of Occupational and Environmental medicine reports that healthcare expenditures are nearly 50% greater for workers who report high stress levels.
Source: Work/Life Benefits, Cypress, CA
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Stress is reduced by assisting employees with financial planning related questions. Poor financial planning behaviors are breeding productivity-inhibiting stress for roughly 33% of U.S. workers.
Source: Garman, Leech, and Grable, Virginia Tech
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Many financial advisors believe there is a very real disconnect between those who need financial planning the most and those whom the profession targets. Be that as it may, there are simply too few financial planners to serve the vast American middle class.
Source: Financial Planning magazine
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Trying to stay ahead of the game, many companies are looking for viable tools to minimize their fiduciary liability and provide their plan participants with the tools they need in today’s volatile investment landscape.”
Source: David M. Katz, “Retirement Rage. Why do employees file lawsuits over their 401(k) plans? Maybe they’re just mad at the markets.” CFO.com
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Retirement planning and investment education are the most wanted benefits of employees, according to benefits specialists.
Source:International Society of Certified Employee Benefits Specialists and Deloitte & Touche; Washington Post
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“Employees need help. Employers encouraged us to join these defined contribution plans and now they’re just fine with our picking up information here and there. Companies have to stop whining about what they can’t do, and find a way to provide better and specific investment and financial planning advice to their workers. Otherwise there are going to be a whole lot of retired folk who will be getting good advice – from class-action lawyers.”
Source: Michelle Singletary, “In a 401(k) fog? Planners Blame Your Employer.” Washington Post
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Whenever ERISA special Stephen Saxon finds himself in a group of employers or investment advisors discussing 401(k) plans, one of the top three questions asked of him is:
“How can plan sponsors protect themselves from lawsuits if the market suddenly collapses? “
Attorney Saxon believes a good education program can be an important defense if an investor lawsuit arises. “I would ensure that participants are fully informed.
That would include participant education programs or some type of advisory program to help them make informed decisions.”
Source: Plan Sponsor magazine
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