Every retirement plan provider seems to have amazing technology.
At least that’s what the sales presentation says.
There are dashboards, mobile apps, payroll integrations, artificial intelligence, automated enrollment, participant engagement tools, and portals that supposedly do everything except make your morning coffee.
Technology is important. I’m certainly not suggesting otherwise.
The problem is that providers sometimes confuse having great technology with providing great service.
Most plan sponsors don’t wake up in the morning excited about their recordkeeper’s new dashboard. They want payroll contributions deposited correctly. They want distributions processed. They want their Form 5500 completed. They want compliance testing done.
Most importantly, when something goes wrong, they want someone to answer the phone.
That’s where technology suddenly becomes very important.
A payroll integration that works perfectly 99% of the time is wonderful. What happens during that other 1%?
Does the provider have someone who can actually fix the problem, or does the plan sponsor get a support ticket and an automated email promising a response within three business days?
Technology should make service better. It shouldn’t replace service.
I’ve seen providers spend enormous amounts of money developing technology while cutting back on the experienced employees who actually understand retirement plans. That’s like buying a Ferrari and getting rid of the mechanic.
Eventually, something breaks.
The best technology in the retirement plan business is technology backed by knowledgeable people. Automation can eliminate repetitive work and reduce errors, but there will always be situations that require judgment, experience, and somebody willing to take responsibility.
Plan sponsors aren’t buying a portal.
They’re buying a service.
Technology can help you deliver that service better, faster, and more efficiently.
Just don’t make the mistake of believing that the technology itself is the service.