If you’re still issuing physical retirement-plan enrollment kits, you’re spending too much on paper, print, and postage. On average, replacing kits with multi-touch digital experiences can reduce enrollment communication expenses while adding journey tracking, additional prompts, and higher registration rates for newly eligible participants.
One benefit services company reduced onboarding costs for a key line of business by 30% by transitioning plan onboarding to digital, achieving a positive ROI on digitalization within 12 months.
Many recordkeepers have already made the switch to digital experiences by shifting from printed enrollment content to fully automated plan microsites, including disclosure and notices. Along the way, they’ve discovered other important advantages.
1. Reduce your footprint
Many physical enrollment kits get printed and mailed directly to participants at significant print and postage expense. Others are created in small batches quarterly, only to take up shelf space with plan sponsors or administrators. These batch kits have a limited shelf life, and the majority end up in recycling bins. When firms stop printing, storing, and discarding kits, it’s better for the environment and adds savings to their bottom line.
2. Increase your impact
Paper-dependent recordkeepers typically decide to minimize the number of versions of retirement communications they create because the cost, effort, and waste in producing and updating additional versions just isn’t practical. But limited versioning comes at a cost.
Digital solutions add an agility that paper, print, and mail cannot, making it easier to deliver personalized, relevant, life-stage, and situationally related content — without a lot of added effort and cost. This improves engagement, ultimately increasing both plan participation and contribution levels.
3. Boost your bottom line
Amidst economic uncertainties, recordkeepers are continually under pressure to do more with less. Those that make the switch to digital find that there are considerable additional savings — and benefits — even beyond the cost savings that come with eliminating dependence on print and mail.
Digital solutions facilitate automated journeys based on rules and triggers, reducing manual processes. Integrated data, content, and business rules increase workflow efficiencies. API connections make it possible to leverage real-time data. Overall, it becomes possible to deliver communications faster, minimize manual errors, and simplify processes, beginning to end.
4. Add workplace value
Nearly half (49%) of Americans say their worries about money have affected their job performance. 1 A similar number (51%) think it’s somewhat or very likely they will outlive their savings. 2
Increased participation and contribution levels aren’t the only advantages that digital capabilities have to offer. When plan sponsors provide the right information at the right time, it can also add to employee peace of mind.
Dynamic personalization and customized communication journeys can help employees better understand financial opportunities to help themselves. For example, the SECURE Act includes provisions for:
- Expanded eligibility for long-term part-time workers 3
- Treatment of student loan payments as elective deferrals for purposes of matching contributions 4
- Limited unpenalized withdrawals for certain emergency expenses 5
These and other savings opportunities may help employees better weather specific financial situations and challenges. Recordkeepers can clearly and concisely share specific, relevant information with employees rather than burying that information within catch-all communications. This can create a ripple-effect increase in employee productivity, satisfaction, and retention.
Differentiate your business
93% of HR executives agree that their companies still need to do a better job of helping employees understand and maximize the financial benefits available to them.6
Going digital represents a leap forward in communications effectiveness — and a tremendous opportunity to reduce communications expenses. With a rapid ROI and a positive impact for recordkeepers, plan sponsors, and employees alike, the logical question isn’t whether to go digital, but how.