Employee Education Study Helping Make 401(k)s Retirement Ready

Transcription

1 ADP RETIREMENT SERVICES Employee Education Study Helping Make 401(k)s Retirement Ready HR. Payroll. Benefits. ADP Lorem Ipsum Lore 1

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3 Executive Overview THE IMPACT In 2011, ADP commissioned Chatham Partners to conduct a follow-up to a 2008 study which reviewed the impact of employee enrollment rates in 401(k) plans that moved to ADP from another provider following education meetings conducted by an ADP Education Specialist. Among the key findings were the following: When clients moved their retirement plan to ADP from another provider, their participation rate increased 19% after employee education meetings conducted by an ADP Education Specialist (versus a 13% increase in 2008). 67% of clients agreed that ADP enrollment presentations generated interest in participating in the plan. ADP received high marks from clients regarding their enrollment meetings, including the overall quality of the meetings (73%), the ease of the enrollment process for participants (72%), and the ease of scheduling meetings (75%). ADP Education Specialists were cited for being well prepared to conduct enrollment meetings (77%), for having a professional image (79%), and for answering questions appropriately (79%). 92% of clients agreed with the statement that they would highly recommend ADP s retirement plan to others. In summary, these findings illustrate the value of ADP s educational program and its retirement plan Education Specialists in helping plan participants be retirement ready. ADP Lorem Ipsum Lore 2

4 Background THE OBJECTIVES ADP commissioned Chatham Partners to survey an extensive cross section of their 401(k) clients to determine their attitudes regarding ADP s enrollment services. Specifically, the survey was tailored to learn: OBJECTIVES The overall satisfaction of the education services provided by ADP ADP s ability to increase employees participation in the plan ADP s success in increasing deferral percentage rates among participants Whether employees who did not previously participate in the plan were motivated to participate in the plan as a result of an ADP enrollment meeting If current ADP retirement plan services clients would recommend ADP to others METHODOLOGY THE METHODOLOGY Chatham Partners sent 545 surveys to current ADP 401(k) clients and received 179 responses. The 33% response rate was significantly better than the 24% response rate for a similar survey that was conducted in ADP Lorem Ipsum Lore 3

5 Key Findings and Analysis IMPACT OF AN ADP-SPONSORED ENROLLMENT MEETING Overall, plans that moved their 401(k) program to ADP experienced an increase in participation rates by 19% after an enrollment meeting. This was a meaningful increase from the 13% enrollment boost that occurred in the 2008 study. Increased participation occurred following both in-person and phone/webinar meetings. Smaller companies reported the most significant increase in participation rates. What was the percentage increase in employee participation after the ADP enrollment meeting? What survey respondents had to say: Once employees realized the benefits of being in the retirement plan, they enrolled. [Our Education Specialist] explained the plan very well. She kept the meeting moving along and to the point. * Client experience may not be typical. ADP has not paid compensation for any testimonials. ADP Lorem Ipsum Lore 4

6 OVERALL SATISFACTION WITH THE EDUCATION SERVICES PROVIDED BY ADP 93% of clients expressed satisfaction with the education services provided by ADP. 63% of those clients provided a 6 or 7 rating for satisfaction. How satisfied are you with education services provided by ADP? What survey respondents had to say: The enrollment process went very smoothly. [Our Education Specialist] was at all three of our properties, including corporate, and got everything done in two days. The higher participation rate was due to the presenter. I credit him with the results. * Client experience may not be typical. ADP has not paid compensation for any testimonials. ADP Lorem Ipsum Lore 5

7 SATISFACTION WITH ADP S ENROLLMENT SERVICES 93% of clients expressed satisfaction with the ADP s enrollment services and 64% of those clients provided a 6 or 7 rating for overall satisfaction. A number of features related to the enrollment meetings also received strong ratings. How satisfied are you with ADP s enrollment services? What survey respondents had to say: The session was very professional. Our employees were very happy. We ll be moving to a new location and hiring more people. I m confident we ll get more participants thanks to ADP s efforts. * Client experience may not be typical. ADP has not paid compensation for any testimonials. ADP Lorem Ipsum Lore 6

8 SATISFACTION WITH ADP S ENROLLMENT PERSONNEL 92% of clients expressed satisfaction with the ADP s enrollment personnel and 70% of those clients provided a 6 or 7 rating for overall satisfaction. A number of characteristics related to ADP s Education Specialists were rated highly as well. How satisfied were you with ADP s enrollment personnel? What survey respondents had to say: [The Education Specialist s] product knowledge was great. She sounded like she knew what she was doing, which made us feel comfortable. What survey respondents had to say: * Client experience may not be typical. ADP has not paid compensation for any testimonials. [The Education Specialist] spent as much time with us as we needed. She is on top of her game. ADP Lorem Ipsum Lore 7

9 OVERALL IMPRESSIONS Clients strongly agreed that the ADP offers a full range of retirement plan services and benefits. 92% of clients agreed with the statement that they would highly recommend ADP s retirement plan to others. What are you impressions of ADP s retirement plan? What survey respondents had to say: [Our Education Specialist] was both professional and highly knowledgeable, but also spoke to us in a way we could understand. Great job! * Client experience may not be typical. ADP has not paid compensation for any testimonials. ADP Lorem Ipsum Lore 8

10 EXECUTION ON PROMISES MADE DURING THE SALES PROCESS Clients overwhelmingly agreed that ADP met or exceeded the promises made during the sales process. Most clients indicated that ADP exceeded expectations with regard to availability of online education/webinars, enrollment services and the ability to motivate employees to act. Has ADP lived up to the promises made in the sales process? What survey respondents had to say: The enrollment meeting went very well. [Our Education Specialist] was very helpful during the education meeting, and [our other contact] was outstanding in assisting me during the transition. * Client experience may not be typical. ADP has not paid compensation for any testimonials. ADP Lorem Ipsum Lore 9

11 Conclusions ADP retirement plan services clients expressed a high degree of satisfaction with the firm s education program and, more specifically, its Education Specialists. Plan participation increased sharply following an Education Specialistled enrollment meeting for plans that held employee education meetings after moving their 401(k) program to ADP. In addition, clients expressed a high degree of satisfaction with the Specialists retirement planning knowledge and presentation skills. It was evident that ADP made good on its promises during the sales process and helped their clients to more effectively introduce their plan to their employees. A testament to ADP s commitment to their clients was evident by the fact that 92% would highly recommend ADP s retirement plan to others. In summary, ADP s education program and Education Specialists are effective in helping plan participants be retirement ready.

12 Client experience may not be typical. ADP has not paid compensation for any testimonials. Education Specialists are registered representations of ADP Broker-Dealer, Inc., an affiliate of ADP, Inc., One ADP Blvd, Roseland, NJ; Member FINRA. ADP Broker-Dealer, Inc., ADP, Inc. and their affiliates do not offer investment, tax or legal advice, and nothing in these materials is intended to be, nor should be construed as, advice or a recommendation for a particular situation or plan. Please consult with your own advisors for such advice. This whitepaper is for general information only and is not intended to provide financial, investment, tax or legal advice or recommendations, nor is it the sole authority on any regulation, law or ruling. ADP, Inc., and its affiliates are not responsible for the accuracy and/or content of this whitepaper, nor do they provide financial, investment, tax or legal advice. You should consult with your own financial, investment, tax and/or legal advisor(s) for such advice ADP Lorem Ipsum Lore 10