AFS 401(k) found signs that wellness programs are at least as effective as automated features—in the case of one employer the firm surveyed, implementation of a wellness program correlated with a 20 percent rise in plan participation rates, from 73 percent to 93 percent, in less than a year.
Wellness programs also ensure that sponsors and advisors are meeting their fiduciary responsibilities to the fullest possible extent, says Kent.
“Gone are the days when you can offer a 401(k) plan to your employees and just let it go,” says Kent.
Worksite will be broker-agnostic, meaning any plan advisor can use Merit’s tools. The platform will be able to offer services directly to advisors or act as a third-party resource for advisors, benefits consultancies, recordkeepers and other service providers.
For every new plan sponsor that signs on to Website, Merit administers a financial wellness exam to all plan participants to gauge both individual and enterprise financial health. Data from the exam is used to help develop a plan for participants and for sponsors.
Sponsors may use the information to learn more about their employees and the financial conditions of their workforce and to select tools and resources for their participants, according to Merit. Participants can use Worksite’s data to better understand their own needs and to educate themselves on how to pursue their financial goals.
Most advisors aren’t equipped to offer a comprehensive financial wellness program themselves, says Kent, because they lack the resources.
“Plan advisors are watching their traditional services become commoditized. Their fees are being driven down, and it’s because the story they tell sponsors is old and doesn’t really help participants,” says Kent. “There’s really only going to be a select few people who huddle around this concept early on.”
The key to getting more advisors onboard, according to Kent, will be platforms that simplify or automate wellness programs, like Worksite.
Worksite will include a web portal for participants and sponsors, and seven full-time professionals will staff the platform to provide education and coaching.