Electronic Enrollment and Payroll Deduction, Please

While employees are receptive to a variety of ways to participate in employee plans and learn about them, some electronic and automatic tools are strong favorites, according to a recent report. 

The report, by Nick Rockwell and Erin Marino, of Eastbridge Consulting Group, Inc., as reported by BenefitsPro, concerns voluntary benefits. However, retirement professionals and sponsors may find it interesting in their administration of retirement plans. 

Enrollment

A majority—62% —prefer to enroll in a plan electronically in the future, say Rockwell and Marino. Baby Boomers are even more interested in that, to the tune of 77%. 

In general, they found, the larger the employer, the higher the interest in electronic application and enrollment by themselves. It was highest among employers with 10,000 or more employees, followed by those with 2,500 to 9,999 employees. Less than half of the employees in employers smaller than that would choose such an option, they say, and just a little over 20% of those who work for employers with 10-49 employees prefer that option.  

It is worth noting that there is noteworthy interest in applying and enrolling electronically with the assistance of a counselor or through a virtual meeting or video call. 

Payroll Deduction

Overall, a solid majority—61% —favor payroll deduction as the way to contribute to a benefits account, say Rockwell and Marino found. Baby Boomers are even more interested in that, to the tune of 77%. 

But Don’t Discount the Personal

Despite the overall preference for the electronic, still there is a significant population that likes personal contact, Rockwell and Marino found. For instance, although a majority wants electronic enrollment, almost one-third of those they studied most recently did so with the assistance of a benefits counselor or with a representative on the phone, and 37% said that they would like assistance from a person in the future.

In addition, interest in applying on paper persists. It is strongest among employees who work for employers with 10-49 employees, at just over 30%; interest among employees of employers with 100-499 employees was almost as high. Generally, the larger the employer, the lower the interest in paper application and enrollment.