Mercer Encourages Employers to Better Support Their Workers

The firm says employee satisfaction tends to trend higher for employers that offer superior benefits.

The more supportive an employer is, the more optimistic and loyal its employees will be, Mercer says in a new study.

As the Delta and other variants of the coronavirus prolong the pandemic, more employees say they’re looking for support from their employer and that getting it (or not) affects their well-being. Mercer’s latest “Health on Demand” study found that since the onset of COVID-19, employees who say they received good support from their employers are much less likely to view their personal experience with the pandemic as mainly negative, compared with those who received little to no support, at 25% vs. 49%.

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Additionally, 45% of those receiving good support say they are less likely to leave their job as a result.

The Mercer study underlined the physical, emotional and mental tolls the pandemic has taken. More than half of U.S. employees said they felt some level of stress in the past year. Nearly a quarter of employees say they experienced mental health issues such as depression or anxiety; a fifth are financially worse off; and nearly a fifth feel less physically healthy or fit. Low-wage earners were more likely to experience each of these negative impacts—and less likely to feel supported by their employers during the pandemic, according to the study.

While 59% of employees said they feel some level of stress, one-quarter reported being highly or extremely stressed. And while 48% of employees rate employer support for mental health as highly or extremely valuable, 40% say it is difficult to find and access quality mental health care. It’s even harder for some employees: Among low wage earners, that number rises to 47%.  Likewise, employees identifying as LGBTQ place the highest value on employer support for mental health—61% say it is highly or extremely valuable, but nearly as many (58%) say quality mental health care is difficult to find and access.

Mercer also said participants with plans that hold a variety of benefits tend to have better outlooks. Of employees who are offered 10 or more health and well-being benefits or resources by their employer, 52% say their benefits are a reason to stay with their company, compared with 32% of those that are offered one to five benefits.

The types of benefits matter as well, especially with a growing interest in digital access to health care. One-fifth of employees reported using telemedicine for the first time during the pandemic, and another 23% increased their usage of the benefit. Of those who tried telemedicine for the first time, 72% say they plan to keep using it.

Compared with the 2019 Health on Demand survey, a greater percentage of employees in the 2021 survey found digital solutions to be highly or extremely valuable. Mercer says this reinforces the idea that employers need to plan for a future in which most health care journeys include virtual visits and digital health care support.

As health inequity persists in the workforce, Mercer recommends employers target strategies to help low-income workers and those who generally cannot afford high medical costs. For example, participants with a household income at or below the U.S. median are significantly less likely to feel confident they can afford the health care that their family needs (60%) compared with those above the median (83%).

CAPTRUST, T. Rowe, NBS Team Up on ‘MEP-PEP Alternative’ for Small Clients

The Direct Fiduciary program aims to allow companies to significantly reduce the amount of time spent managing an individual 401(k) plan by outsourcing administrative and investment fiduciary responsibilities.

CAPTRUST Financial Advisors has announced the launch of a new service dubbed “Direct Fiduciary,” billed as a comprehensive retirement plan outsourcing solution for small companies.

The program, launched in collaboration with T. Rowe Price and National Benefit Services (NBS), seeks to deliver better outcomes and lower costs for small business retirement plan clients that wish to maintain flexibility by operating an individual plan—as opposed to what may happen in a pooled employer plan (PEP) or multiple employer plan (MEP).

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Within the service, CAPTRUST will provide 3(38) investment management, as well as participant investment advice, while NBS will act as the third-party administrator (TPA), 3(16) plan administrator, and primary contact for employers. T. Rowe Price will be the recordkeeper and the day-to-day contact for plan participants.

According to a statement announcing the service launch, CAPTRUST will assist plan sponsors with navigating certain fiduciary responsibilities that are not fully outsourced, including ongoing monitoring and due diligence of the plan’s service providers and determining fee reasonableness. CAPTRUST will also provide virtual investment advice to plan participants through managed accounts and give plan sponsors the option to add one-on-one participant advice and financial wellness services.

Links to both the virtual and one-on-one participant advice offerings from CAPTRUST are integrated within T. Rowe Price’s website.

“We designed Direct Fiduciary as an alternative for plan sponsors considering other aggregate models, including multiple employer plans or pooled employer plans,” explains Jennifer Doss, senior director and defined contribution (DC) practice leader, CAPTRUST. “We have created a premium service at a price point that is the same or less than most plan sponsors currently pay and are excited to offer smaller organizations an opportunity to leverage our collective scale and expertise while maintaining control of their plan.”

Doss emphasizes that Direct Fiduciary delivers an individual employer-sponsored retirement plan—not MEPs or PEPs—with the goal of allowing organizations to customize their plan to meet the unique needs of their employees.

The launch of the service comes as the MEP and PEP marketplaces are being aggressively developed by both established and newcomer providers in the retirement plan industry, and as the industry’s focus turns to creating solutions and strategies that can allow smaller businesses to emulate the retirement plans of larger organizations. The vision is that, by providing more affordable and less administratively burdensome options to small businesses, the industry can begin to close the sizable retirement plan coverage gap experienced by workers in the small business economy, who by some measures make up about half of the U.S. workforce.

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