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PayFlex® Awards & Recognition

  1. Technology bridges the silos. There is no shortage of participant data. Employers have demographic and census data; benefits consultants and health insurance carriers have expected medical expenditures. The retirement plan advisors and record keepers have participant 401(k) account information. Despite the seemingly endless data points, few decision-makers have access to the complete picture of participants’ security across health and retirement until recently. Technological innovation continues to pave the way for securely sharing data. Vendors can increasingly provide more personalized, straightforward and consistent guidance, while still protecting participants’ privacy. Seeing one’s total financial well-being in one location is desirous and will help bridge the conversation between health and wealth.
  2. Plan level reports and advice looks different. The Bureau of Labor Statistics reported in March 2019 that employee benefits accounted for 30 percent of total compensation for workers in the private industry. Insurance and retirement benefits together comprised more than half of the total cost of benefits. Legally required benefits such as Social Security and Medicare comprised another quarter of the benefits costs. Employers are looking to make the most of this meaningful investment and providers are increasingly positioned to help. With more information sharing across benefit plans, health plan consultants and retirement advisors can provide more coordinated guidance to help employers optimize their contributions across benefits plans. Coordinated plan level reports can help employers evaluate their contribution in order to offer a competitive overall benefits package while optimizing FICA savings, and helping employees balance their long-term financial security with their near-term ability to withstand a financial shock.
  3. Personalized guidance replaces participant education. Most agree that millions of dollars invested in participant education has not proven successful. Some say participants are “disengaged.” Data shows though that people are more engaged with their paycheck and finances than ever before. According to a PwC 2019 report, when asked what they feel causes them the most stress, more employees cite financial matters than any other life stressors combined. One of the report’s key findings: “Despite continued low unemployment and nominal wage growth, fewer employees feel their compensation is keeping up with the cost of living.” That is a growing concern and responsibility of plan sponsors and their advisors. Fortunately, new technological innovations are helping participants take full advantage of their employee benefit plans. Providing participants guidance on paycheck allocation so that they can optimize tax benefits while balancing the trade-offs of benefits and take-home pay is one of the most effective ways to increasing employees’ satisfaction and reducing their financial stress. Such guidance can move beyond the generalized “save more” message and be personalized based on participants’ unique circumstances such as benefits eligibility, employer contributions, financial circumstances, risk tolerance, and risk capacity. Use of guided decision support tools at the time of benefits enrollment that shows what other people in similar circumstances do, perhaps using historical data to provide predicative modeling, will support participant engagement and understanding.

Contact a PayFlex Advocate

(1-844-729-3539)(TTY: 711)
Monday - Friday, 7:00 am - 7:00 pm (CT)
Saturday, 9:00 am - 2:00 pm (CT)