Periodic allocation details are then sent on behalf of members. With Invisor, for example, plan sponsors decide on employee eligibility, company contributory amounts (if any) and then open an account, a process that can be completed in minutes. Online investment advisors such as Invisor use technology to offer their services at a fraction of the cost of traditional investment advisors.Р”В®mployees can consolidate all of their investments РІР‚вЂњ group and non-group РІР‚вЂњ so they can get all of their savings professionally managed and monitor them all on one dashboard 24/7 on any device.Р”Р‡or HR departments, getting started with online-advisors is a simple and efficient process. Service conveniently delivered online by experienced financial professionals. Independent and unbiased selection of low-cost investment funds. Personalized, goal-based portfolio construction and management for each employee. Though simplified investing that can help your employees achieve financial security, the benefits of online-advisors include: Online-advisors have worked to understand the pain points and help address these challenges, and can be particularly appealing to any cost-cutting organization. But in a world of shrinking defined-benefit retirement plans, not providing financial advice to group plans poses a much greater long-term risk of having financially unprepared and demotivated employees working on their teams. Some HR departments fear that arranging for group plan investment advice may pose some legal risks to the firm if employee portfolios underperform. HR managers are aware employees arenРІР‚в„ўt always selecting the best investments, but donРІР‚в„ўt necessarily have the expertise or resources to provide advice.Р”Р„dditionally, a two per cent cost of running a program is significant in an environment where achieving a five to six per cent annual investment growth is challenging. Many of those who do select their investments do so based on past performance only, or suggestions received from co-workers. For example, monthly contributions go into money market funds (the default choice when no product selection is made by employees), which yield almost nothing in return after costs. In many cases, HR departments know that their employees are not picking the right investments due to lack of knowledge. The majority (60 per cent) of plan members who werenРІР‚в„ўt getting financial advice had risk levels that were either too low or too high.Р”РЃ0 per cent of plan sponsors said theyРІР‚в„ўd be interested in providing some type of investment advice to their members.

A study of seven large retirement plan sponsors revealed:

On the other hand, financially unprepared employees are twice as likely to be unfocused and distracted, and 80 per cent are more likely to be living paycheque to paycheque.Р”В«ut when it comes to investing, the average person is intimidated or just doesnРІР‚в„ўt have the time and inclination to build their own portfolio. According to a Manulife/Ipsos Reid 2014 Health and Wellness Study, financially prepared employees are more engaged at work, and are also more likely to say theyРІР‚в„ўre motivated to do their best at work. The facts show that ensuring financial wellness as an employee benefit goes a long way. Online-advisors are making waves across the personal finance industry in Canada, and corporations are increasingly keen to learn more about how the tech-based service is being tailored to help solve the needs and challenges HR departments face when it comes to guiding employees in personal finance.

H more employers wanting to reduce their risks and costs around retirement plans, many are looking at alternate ways to offer employees support.

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