Fred Barstein with Plan Sponsor Billy, Chief Administrative Officer
Effective communication is the linchpin of a successful 401(k) plan, serving as the cornerstone upon which engagement, participation, and overall plan success hinge. The success of a 401(k) plan pivots on the ability to communicate information in a manner that fosters engagement and encourages active participation. Whether conveying the benefits of enrollment, explaining investment options, or addressing regulatory changes, clear and comprehensive communication ensures that participants not only receive information but also understand and act upon it. In essence, the entire success of the 401(k) plan is intricately woven into the fabric of its communication strategy.
During The Plan Sponsor University (TPSU) Fiduciary Education Program held in Alpharetta, Georgia, Fred Barstein, TPSU’s founder and CEO, engages in a discussion with and Billy, Chief Administrative Officer of a real estate company. Billy provides a nuanced perspective, acknowledging the need to adapt to the diverse ways people consume information in the modern era. He highlights the importance of employing multiple channels, including the intranet, payroll notifications, word of mouth, seminars, and presentations by advisors.
What is conveyed through Billy’s insights is a holistic approach to communication, recognizing that a one-size-fits-all method no longer suffices. Instead, a multifaceted strategy that spans various mediums and occurs consistently over time is deemed more effective. The mention of intranet and payroll notifications reflects a blend of digital communication, while word of mouth, seminars, and advisor presentations underscore the value of interpersonal engagement.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein, CEO and founder of 401kTV and TPSU, just completed a program in Alpharetta, Georgia. I’m here with Billy. Okay if we ask you a few questions?
Billy Palmer:
You bet, happy to do it.
Fred Barstein:
Before we do, tell us a little bit about yourself.
Billy Palmer:
Sure. My name’s Billy Palmer. I’m a chief administrative officer for a real estate company. We have about 120 employees, and we have about 40, 50% participation in the plan.
Fred Barstein:
Great. So one of the things we talked about is communications, and usually that’s a sore point and what’s not working. Can you tell us a little bit about what you do with communicating with your employees?
Billy Palmer:
Sure. So I’ve found in this modern world, Fred, that it’s really difficult to find one-size-fits-all communication. The same way where we used to get all of our information from the newspaper. You can’t rely on that anymore. A lot of people get information from social media and a lot of people from word of mouth. For us, we have to find eight, 10 different ways to communicate the beneficial aspects of the 401(k) plan. So we put things on our intranet website. We put things within our payroll notifications. We have word of mouth, like some sort of evangelists among our training staff. We’ll do seminars in the office. We’ll invite our 401(k) advisors to come do presentations for our team. Anyway, the more ways you can communicate over long periods of time, we find the higher ultimately the participation rate is.
Fred Barstein:
Do you ever get a complaint saying you’re communicating too much with me?
Billy Palmer:
Never.
Fred Barstein:
Never do.
Billy Palmer:
Never had that. Most of the time, because half the time they get it and they delete it so.
Fred Barstein:
Right. We were saying some people just delete emails all the time.
Billy Palmer:
That’s right. That’s right. I’m one of them.
Fred Barstein:
Final question, how was the program? Would you recommend it? A couple of things you might’ve learned?
Billy Palmer:
Sure. I thought the program was outstanding. For somebody who does 401(k) as sort of a side job to legal work, administrative work, HR, etc., it was really beneficial for me just to sort of be in a room with a bunch of my peers to understand and hear some of the same experiences and challenges that they faced. I found the leaders, the presenters were excellently prepared, went through things that were relevant to me. The whole thing was very well done.
Fred Barstein:
Great. Thanks for your time at the program.
Billy Palmer:
Yeah.
Fred Barstein:
Thanks for your time today and thank you for watching 401kTV. Hope to see you sometime at TPSU program. We’re doing 50 of them this year, but we’re all over the country. So thanks for watching.
