Employers take different approaches in developing the benefits policy for their organizations. Basically, all want to provide a total compensation package, including benefits, that allows them to recruit and retain the employees they need for their enterprise to be successful. Conversely, 11% of firms feel no need to compete on benefits. They offer the basics and let it go at that. The other two-thirds of employers fall in between these two extremes. They offer a package of benefits that is competitive with other companies in their industry. About one-quarter of employers, however, go further per a Spectrem survey, and offer voluntary financial planning services among other choices. Whether from an old-fashioned sense of paternalism or simply a desire to “be the best” in all ways, they consciously provide an array of benefits that is richer than other firms in their industry.

Given the expertise retirement plan providers have built over many years of developing and delivering educational, planning and self-evaluation tools, it would seem the appropriate next step to deliver a broader range of planning services. These services could also help in building overall relationships with plan participants that have the potential to survive when participants retire or change jobs. Rollover assets as well as revenues from other products and services are the payoff of this strategy.

Retirement plan providers play an important role in providing financial planning services to plan participants. Over two-thirds of sponsors say their retirement plan provider conducts periodic enrollment or investment review meetings and offers on-line investment education to participants. Overall, three-quarters say that their provider offers plan participants individualized investment advice. This group is split about equally between those who offer advice on-line or in face-to-face meetings. Only 6% of plan sponsors say that their retirement plan provider offers none of these services.

Retirement plan providers are well positioned to be the suppliers of voluntary financial planning and advisory services and most already offer some financial products for voluntary purchase by participants. There is also an opportunity to strengthen relationships with their plan sponsor clients and establish long-term relationships with plan participants through the offering of voluntary financial planning and advisory services delivered at the workplace. Most employers agree that they should offer such services. Many already do offer some planning services, often in conjunction with the retirement plan and using the plan provider to deliver the service.

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