It’s common at small companies for one person to be in charge of all HR functions including their organization’s retirement plan which can be challenging. At a TPSU program held at Queens University, the HR manager at a 65-person manufacturing company in the Charlotte, NC area explains the benefits and challenges for a small company that sponsors a defined contribution (DC) plan like a 401k as well as the rewards.
Being small allows the HR manager to know her staff well and work closely with them to help best leverage company benefits. She is a trusted advisor to the employees who also know her well. In addition, the plan can be customized to the needs of the staff which can readily be amended and changed as the company grows and the employees change.
On the other hand, there are challenges going it alone. The work never seems to stop, which can be stressful, because DC plans can take a lot of work and competes with other jobs that a solo HR person must perform. The key is leveraging outside resources like DC record keepers, TPAs and especially the plan advisor.
The Charlotte based plan sponsor was careful to select a plan advisor that was compatible with their staff and made sure that they were available for periodic lunch and learns as well as for one on one meetings. The HR manager relies on the advisor to help keep the plan in compliance alerting her to any new laws as well as keeping her informed on new trends being proactive.
Going it alone, especially when managing an ERISA plan which has lots of rules and can be at times unforgiving, is a challenge for small companies with limited HR staff but it is manageable if the right outside resources are retained and properly leveraged. These resources like providers and advisors are getting better educated themselves with lots of online tools so be sure to find the right ones for your company – and use them wisely.
