It’s hard to find good help these days.
There is little doubt that’s true as thousands of companies across the nation struggle to find the right people amid a sizzling U.S. job market. With today’s unemployment rate at a 50-year low, finding the right people can be a major achievement, and when an employer finds the right person, hanging on to them may be more complicated than a competitive salary.
To attract and hold the best employees, the most competitive companies offer ways for their people to save for the future, such as 401(k) plans, profit-sharing plans, defined benefit plans and health savings accounts.
But establishing a good retirement plan for employees is not that easy, and companies that have already checked that box can’t just walk away. Retirement programs are living, breathing entities that must be monitored and maintained. Benchmarking is necessary, a prudent process must be established, and adjustments must be made as federal rules change and financial markets fluctuate.
Registered investment advisers are in a good position to help employers develop and maintain programs that facilitate retirement savings and provide peace of mind to employees and their families.
While CEOs, CFOs, company presidents and HR directors are focusing on the day-to-day of operating a business, advisers are watching the financial markets, keeping up with regulatory changes and managing investment portfolios.
The financial environment is evolving, and big changes can occur, seemingly overnight, causing headaches for those who aren’t paying attention.
For example, the biggest change in retirement savings law in more than a decade was signed by President Trump over the Christmas holiday, but few people noticed, and that’s understandable. The law, known as the Secure Act, was one of several measures included in an omnibus spending bill Congress approved and sent to the president as the session drew to a close in December.
Many in the financial community have been watching the Secure Act evolve over the past year, and they knew approval was on the horizon. Now, they’re working with clients to update plans with new elements, such as inclusion of long-term, part-time employees in 401(k) plans. Until the Secure Act was passed, 401(k) programs were available to only full-time employees. The law also contains new disclosure requirements that now must be incorporated.
There are many moving parts in the world of retirement savings. While some companies navigate the landscape on their own, others turn to experts, but the process of finding the right team of advisers is not as easy as picking up the phone.
Employers might consider narrowing their search by focusing only on accredited financial fiduciaries, who are legally bound to act in their clients’ best interests. Next, employers should consider local firms who are familiar or seek recommendations from trusted contacts. Then, employers should interview prospective advisors to determine the cost of services, method of compensation and amount of experience with comparable clients. Also, seek a clear understanding of their process for enrollment, education, reviews, and due diligence.
Why is all this so important? For most people, retirement funds are the only type of savings they have, so imagine employees working for companies that don’t have retirement savings programs. The best companies need the best employees, so they want to treat them the best way they can. By offering efficient retirement programs, companies can empower people to impact future generations.
Tyler Grubbs is an accredited investment fiduciary at Full Sail Capital, an SEC-registered investment adviser located in Oklahoma City.