In a digital age, taking your company “paperless” is one of the wisest financial, environmental, and success-driven decisions you can make for everyone involved. For those offering 401(k) plans to their employees, electronic delivery is an especially superior method for communicating with plan participants. Here are several of the reasons why:
Improved Retirement Outcomes
E-delivery encourages participant action and engagement by providing an interactive platform, which often results in greater satisfaction with and return on investments. In fact, a study done in 2018 which surveyed 401(k) plan recordkeepers, showed that participants who frequently visited their plan’s websites and interacted with their investment portfolio contributed an average of 7.8% of their salary per year, while those who did not gave only 5.8%.
Greater Accessibility for Impairment
In contrast to paper documents and disclosures, electronic platforms allow improved access for those with blindness or deafness. Additionally, thanks to natural language processing software, text can be translated into a multitude of preferred languages.
The continued improvement of antivirus security software has resulted in the determination by a recent study that electronic delivery is more secure than snail mail and more likely to reach its intended recipient. It has the added benefit of tracking whether or not said recipient has read your message and also allows you to CC multiple participants so that entire groups can be privy to information without having to spend money on postage.
Speaking of Postage…
The direct cost savings of going paperless can be enormous for your company. In fact, the total cost associated with printing and mailing communication between employees and employers participating in 401(k) plans is $385 million dollars annually, and that number will certainly not be decreasing anytime soon.
On a warming planet, this point in support of electronic delivery’s superiority over paper communication is perhaps the most important. One household going paperless would spare the planet from 8.6 million bags of waste being dumped into landfills, the creation of 151 million pounds of paper, and the dispersal of 2 million tons of greenhouse gases into our atmospheric layers.
Flexibility of Access
How often do you go out without your phone on you? Never? Neither do we. So, this is another really great reason to go green. Not only can you access your electronic notifications anytime, anywhere, whatever email platform you use will have an essentially perfect filing system since it will be totally customizable by each plan recipient.
The shift toward electronic delivery is the future today, and it’s only the beginning. The most important decision you can make as a business owner or a fiduciary party who provides retirement and/or welfare services to its employees is to hire a professional, experienced plan management company to design a customized plan. The Retirement Plan Compliance Specialists at Noble Davis do exactly that, providing relief from all the stress of finding and implementing the right plan. If you’re interested in an evaluation of your current plan, need an entirely new retirement or welfare plan for your company, or want to start a discussion about your plan needs in any other respect, reach out on our website or call us at (440) 498-8408.