Digitized, personalized financial wellness: Meet 401(k) plan participants where they are

With the rise of financial wellness, the role of the financial advisor has changed. They’re no longer just there to guide plan participants through a yearly checkup call, or to give advice when a big life change happens. While advisors still do those things, and helping their clients with financial planning is still their primary job, the way in which advisors and their clients interact—and what plan participants want from those interactions—has fundamentally changed.

The pandemic, and shifting norms, have ushered in a new era where plan participants want to work with advisors who they connect with on a personal level. That connection can be fueled by a common background, first language, shared values or other factors. Fostering these deeper relationships is a positive for everyone, but how do advisors authentically forge these connections?

Why now?

Why are plan participants hungering for these deeper connections now?  There are a number of reasons that go beyond the trauma of a global pandemic, but COVID-19 has had a profound effect on how people view work, their future and how they want to live their lives. Other factors include the influence of technology, the ongoing generational shift that’s happening in the workplace, as well as changing norms about everything from environmental and social issues to mental health and how these things are all interconnected.

We’re in a time of great change, with new stresses and great opportunity, so it’s no surprise that plan participants are looking to connect on a human level with the people they work with, including advisors. Financial planning has always been a very personal endeavor that’s intertwined with so many other aspects of a person’s life, and which requires trust. What’s changed is that how that trust is built now goes beyond certifications or years of experience—which is why some people are listening to TikTok influencers instead of financial professionals.

Recognize diversity

The American workplace reflects the diversity of the nation as a whole, and there are no limits to who needs help with their financial wellness. To effectively advise such a broad group of clients, financial firms need to recognize this diversity and create a culture that can effectively welcome and understand the varying needs of different groups. Having a diverse team is vital, but there also needs to be policies and procedures in place to ensure this consideration happens across the board.

First and foremost, it’s all about creating a safe space for participants. Advisors shouldn’t position themselves as salespeople. They need to understand that to help, it’s critical that advisors are practicing empathetic and adaptive listening. Ask open-ended questions so that participants can tell you in their own words and in their own way what’s most important to them.

Transparency is also helpful for the client. Posting your teams’ pictures and bios on the company website lets participants learn more about the individual they are speaking to and what designations they hold, or languages that they speak. It also lets them see advisors as real people, not just someone with a set of letters after their name.

From an operational standpoint, it’s vital to fully archive all engagements. Make sure that every member of your team who engages with participants has access to the information they need to give accurate and personalized guidance. This not only honors your client’s time, it also builds credibility and trust. After all, achieving financial wellness is a team effort that goes beyond a participant’s interaction with advisors, and it’s important for clients to have confidence with the firm as a whole.

You must also ensure that this personal information is kept safe. This includes having proper cybersecurity measures in place, and maintaining the confidentiality of what participants discuss with advisors. This information should not be shared with employers, who should only have access to high-level data.

Right messaging is key

To increase participation you need to meet clients where they are—that means having a variety of ways to connect and having messaging, resources and advisors that literally speak the same languages as your clients. Having multilingual advisors is important, but you also need to have resources and client communications available in multiple languages so that all clients can access the information they need in their language of choice.

Make sure advisors listen for, and note, things like pronouns, language preferences, and other personalization for clients. This information should be included and be easily accessible in the archived client information so that every member of your team who gets their call can instantly address them appropriately and in their preferred way.

And don’t underestimate the power of visual messaging. Make sure that your in-house promotional images, or the stock photos you choose, reflect the diversity of both your team and your clients. To feel truly welcome and understood, participants need to see themselves reflected in how the firm presents itself.

Multi-channel communication

Another aspect of meeting participants where they are is offering a variety of ways to communicate with them. There can be generational divides and unique personal preferences driving how individual participants want to receive or access information, and it’s important to make sure to offer multi-channel communication to respect those preferences.

While e-mail may be perfect for some, other participants may never check e-mails and prefer texts. Some clients might need you to reach out using different methods for different types of communication. Giving them an easy way to set those preferences from the beginning of their relationship with an advisor—either directly with the person they’re working with, or online—establishes that you’re centering their individual needs in your working relationship.

In today’s digital era, it’s essential to equip participants with the tools they need to accomplish tasks at their convenience. An online scheduler facilitates easy appointment booking according to participant’s availability. While websites provide resources available 24/7, it’s crucial to present clients with multiple avenues to access information. This can be achieved by offering a blend of written content, videos, graphics, and charts, enabling individuals to absorb the message in their preferred style. (And make sure that your website is fully ADA compliant—not only is it the law, it’s an important way to treat all clients equally.)

Firms may also want to consider Awareness Days, which can include in-person events or access to special content related to the specific needs of various groups. Awareness Days clearly signal to plan participants that the firm is a safe space for them, which helps participants feel comfortable discussing the issues affecting them and ask how their financial wellness plan can help.

Boosting employee engagement

The SECURE 2.0 Act was designed to make it simpler for employers to provide retirement benefits and help employees boost their savings. This is achieved through a range of new and updated approaches, like automatic enrollment. Often, employees can feel overwhelmed when trying to understand their benefits, such as health plans or retirement packages. The Act introduces various ways to encourage them to ask for help and learn about their retirement plan. For example, employers can also use incentives to encourage employees to engage with their financial wellness benefits. Understanding that financial wellness can complement an employee’s benefits package is essential. While financial wellness benefits are a valuable part of this package, it’s important to recognize that financial difficulties can lead to stress that affects an employee’s job performance. Providing resources for financial wellness can help alleviate these challenges, which in turn creates an opportunity for employees to also take advantage of other valuable benefits like mental health support. This integrated strategy acknowledges that addressing financial issues positively contributes to overall well-being, allowing employees to embrace the full range of available benefits more effectively.

At Pensionmark we use technology to assist the client in consolidating their employee benefits in a single location to recognize that interconnectedness. Our Financial Wellness Hub is used by advisors to create a centralized place for a participant’s financial wellness benefits. We also can help if a participant reaches out with questions about their other benefits by directing them to the appropriate party.

Related: Prioritize financial wellness programs: Top 5 issues employers need to focus on

Incentives alone aren’t enough to drive financial wellness adoption. It’s crucial to complement them with an approach that encompasses regular communication, personalized guidance, and an understanding of participants’ financial objectives and preferences. Financial wellness is an ongoing practice that needs meaningful engagement for sustainable, long-term success.

 Taking a multi-prong approach to building an authentic connection between plan participants and their advisors is a key factor in finding success for all parties. Prioritizing diversity and building the tools needed for participants to fully engage with their financial wellness plan also provides advisors insight into the unique requirements everyone has when defining their financial goals. When deeper connections are formed, they allow for better planning, better outcomes and better long-term relationships—and that’s exactly what wellness is all about.

Emilio Vela is Director of Participant Engagement at Pensionmark Financial Group.