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Ayco’s Paul Clickman―senior vice president, Corporate Development Group―is a specialist in compensation and benefits, and has worked with hundreds of companies across the country. Among the biggest challenges he sees is addressing the lack of coordination between benefits.
“The issue isn’t that companies don’t provide enough benefits for their people, or that they need to add another benefit,” says Clickman. “The issue is that those existing benefits or resources are often uncoordinated, and are even at times competing with one another.” The role that Ayco plays as an integrator increases awareness, understanding and utilization of all of the offered corporate benefits, thus increasing efficiency and improved employee outcomes.
When benefits aren’t coordinated, there are very real costs to the company. These include:
If the employee doesn’t utilize the available benefits completely and holistically, he or she is potentially leaving dollars on the table.
The best opportunity an employee has for wealth accumulation and/or risk protection is the efficient use of employee benefit plans. Maximizing those benefits creates a need for planning between the various areas (retirement planning, tax planning, estate planning, insurance, etc.).
“We guide executives and employees to understand, appreciate and maximize the resources and benefits that are extended to them within the organization,” says Clickman. “There is a spectrum of alternatives, and we help people think through options. The decisions made in one area of your financial life naturally impact all the others.” For example:
For every dollar that an employee invests in a health savings account (HSA), there are downstream effects that can include:
Clickman says that Ayco’s unique, holistic financial counseling offering isn’t intended to displace other benefits and vendors within the organization, but rather Ayco can provide decision support in guiding both executives and all employees to utilize the plans provided, including introductions to other in-plan benefit providers (warm transfer). In this capacity, Ayco can also serve as a feedback loop to the organization, highlighting which benefits they are directing employees to most frequently, and conversely, what benefits are most underutilized.
As innovators in company-sponsored financial counseling programs, Ayco’s holistic and personalized approach to financial planning is at the heart of our decades-long history.
*U.S. Department of Labor, Bureau of Labor Statistics, Employer Costs for Employee Compensation, December 2016, https://www.bls.gov/news.release/archives/ecec_03172017.pdf.
For disclosures relating to this article, please click here.
By Brandon Ross
Insights from Ayco InnerCircle 2021