Are virtual 401(k) sessions here to stay?

Engaging workers to learn about their 401(k) plans has long been a challenge for employers and brokers. Changes made from necessity during the pandemic point the way to an effective alternative to traditional face-to-face meetings.

Participant viewership for virtual live and on-demand sessions was up 33 percent year-over-year in 2021 as the number of onsite in-person meetings dropped to near zero because of the pandemic, according to Schwab Retirement Plan Services. 

“The pandemic accelerated the migration to virtual education, but the trend has been building for several years as both workers and employers have discovered the advantages of digital delivery,” said Nathan Voris, director of investments, insights and consultant services for Schwab. “Increased attendance and fewer cancellations prove that a combination of virtual live and on-demand sessions is attractive to employees and allows employers to reach their workforce more efficiently and more effectively.”

Of workers who attended Schwab’s education sessions last year:

• Forty-two percent chose to watch via on-demand sessions instead of attending live virtual meetings.
• Cancellations and reschedules decreased 69 percent from 2019.
• The decline in cancellations and increase in on-demand engagement has driven a sharp rise in efficiency, with 48 percent fewer meeting days scheduled by employers while reaching 43 percent more participants in 2021 compared to 2019.

Just as importantly, participants are applying what they learn. In post-session surveys,  93 percent of respondents said they were better prepared to take their next financial step after attending virtual education meetings, and 95 percent were confident they knew where to find the resources they needed to take that step.

In terms of format, 98 percent said virtual sessions were the right length, and 96 percent said the speakers presented the content in an easy-to-understand and engaging way.

John Hancock offers six reasons why online learning may continue to play a larger role in participant experience.

1. Flexibility for 401(k) learning anytime, anywhere. Meetings on the web provide one advantage that onsite sessions simply can’t deliver: They allow people to learn wherever and whenever it suits them best. 

2. Virtual meeting tools can deliver an engaging, multimedia and personal experience. For larger meetings, webinar presentation platforms allow people to view the presenter — visual cues and all — and a compelling mix of graphics, videos, opinion polling and real-time demonstrations of the tools they will be using. For smaller-scale meetings, video conferencing encourages ongoing, real-time discussions. These intangibles spark engagement and lead to confident action.

3. The optimal 401(k) experience is all about smart automation. Nearly half of plan sponsors use auto-enrollment to help get newly eligible employees off to a timely start, but even if a plan requires employees to initiate enrollment, automation can help. 

4. Workers prefer online learning. Seven in 10 U.S. workers consider a smartphone their primary learning channel, and 63 percent consider themselves dual-channel learners, strategically switching between mobile devices and PCs.

5. Regular online learners are one step closer to financial wellness. With fewer than 20 percent of 401(k) participants confident in their ability to make financial decisions, financial wellness benefits have become hot industrywide, and online involvement is the key to making them work. Today’s planning hubs can create personalized and compelling experiences; however, a workforce’s financial IQ is most likely to be raised by plans that cultivate online education and engagement.

6. An exciting spectrum of learning opportunities is available. The best educational strategy a plan sponsor can take is to stay flexible. Relevant, high-quality content will always be important, but reaching out to all participants through the media they prefer also can make a big difference in the outcomes they achieve. Today’s educational options include multimedia learning, live online learning, onsite financial professional-led learning and onsite presenter-led learning. One type of education won’t fit all, but today’s options can make an avid and successful learner out of nearly every employee.

“With remote workforces and work-from-home policies growing, plan sponsors need to be creative to engage their employees.” John Hancock recommended. “Whether the goal is increasing retirement readiness or alleviating financial stress, online learning and engagement strategies can play a key role. Partner with your financial professional and plan recordkeeper to design an approach that works for you and your participants.”