As a financial professional working with employers who want to offer retirement plans, you’re well aware of the benefits of the various plan types to both an employer and employees. New legislation is making employer plan setup easier, and it’s no secret that businesses that can offer benefits to employees, including retirement plans, have a greater chance of employee retention and satisfaction, which ultimately builds a stronger business.
But is there an additional offering beyond the retirement plan that an employer can offer through you, the financial advisor? For those financial professionals who can also provide financial planning advice, there is another golden opportunity for all involved. In the case of a financial advisor working with an employer for the company plan, what about an additional offering through the employer of financial planning advice? Financial planning advice is hugely important to retirement planning, and many employees may otherwise not know where to begin. The opportunity to get personalized advice without having to go hunting for an advisor is a perk to an employee that both the employer and financial advisor can also benefit from in several ways.
For an advisor, the opportunities involved in allowing an employer with whom you already have a working relationship with to offer your financial planning services as an additional benefit to employees is huge. The first and most obvious is the growth of relationships between you and the plan participants. Rather than just depending on recognition of your name from their statements and hoping they’ll reach out, this will give you a chance to sit down and really talk to the participants, potentially turning them into clients when it comes to rollover business or other retirement and legacy planning.
Financial professionals also know that the employer plan sector of the financial business has experienced some definitively compressed margins in the last 20 years. With this strategy, there are chances at earning additional revenue from existing relationships in that space, growing from financial planning offered through the employer relationship. While the employer can subsidize the planning as a workplace benefit, the advisor will still be engaging with the employees as they would with any other financial planning clients. This is a way of earning additional revenue in that relationship while offering both employer and employees increased benefits.
Lastly, your relationship with the business owner is bound to grow as you work together to provide employees with comprehensive retirement planning. Loyalty, referrals, and more can grow out of strong relationships, and your continued excellence in both the realms of employer plan advice as well as individually to the participants will speak volumes. Every interaction is a chance to further a bond with a client, earning you trust and continued business.
On the employer’s side, there are myriad reasons why the business owner should choose to work with you to offer financial planning options to employees, many of which have to do with the benefits of having employees with increased financial health. Retention may be one of the biggest focuses of this benefit, as employees in a better financial place are less likely to turnover. This means keeping the talent that a business has over losing it when an employee seeks employment elsewhere because they do not feel financially stable.
Financially healthy employees are also less prone to stress-induced illness and other barriers to full productivity at work. Being in control of their finances means employees can put more attention into their jobs, which is a benefit to everyone involved.
The various aspects of financial planning also create better savings scenarios. As financial education for clients tends to be a large part of financial planning, employees who understand their options and how they should be saving for their own retirements tend to make larger contributions to their employer-sponsored plans. This obviously creates a better nest egg for employees, but it may create an overall benefit to the business owner’s retirement savings as well by giving them the ability to accumulate greater retirement assets for themselves as the plan grows.
Lastly, a robust benefits package has always been an appealing employment feature when attracting talent to a business. However, with many offerings becoming commonplace, employers may be seeking out unique benefit options to include in employment offers that can set them apart from the crowd. While an employer-sponsored plan may not be the unique benefit it once was, an offering of personalized financial planning certainly is!
For anyone who is already working with employers, this may be one of the biggest opportunities that you haven’t explored. Building great relationships, gaining new clients, and working to help a greater part of your community become financially healthy as they save toward retirement: these are all wins.
To work with an OSJ who puts you and your clients first, whether it’s helping you find opportunities or solutions, give Evolution Financial Advisors a call. We’re happy to help you build your independence your way.
Contact us for specifics on how Evolution Financial Advisors can help your wealth management firm.
