Give your employees The Perk of Less Worry.
If you work for a company you typically have Group RRSP, with funds that you pick. Some control, but really a limited selection of mutual funds. It’s often hard to find information about the funds offered and there’s little or no guidance provided on anything else. Rather than offer personal help with complex choices an often recommended solution is a pre-made allocation package (aka balanced fund) or one that coincides with your expected retirement date. So, a 1-800 number for problems, and a “Rep” appearing annually for questions. What more can you want?
Today, for a Group RRSP to be a true ‘retention tool’ for your employees, better options are required. Millennials especially expect more. Today, such help can be provided without greater expense.
Why? What’s changed? Well, the employees. Today, employees are far more concerned with overall financial obligations, not just RRSPs. Many people today are juggling bills, credit cards, children and older parents. Twenty-somethings may be struggling to pay off student loans and consider TFSA’s more important. For a Group RRSP to be a true incentive employees expect choice, flexibility, and more importantly - smart advice.
This new level of group service means every employee of the firm is invited to sit down with a fully licensed and accredited professional to create a custom solution for the employee and their family, not a cookie-cutter approach.
Money is a major stressor for employees. Companies do see a connection between financial and physical health, and thus productivity and job satisfaction. A major perk to stressed-out employees is confidential one-on-one advice to help manage their finances. They’re sharing information with their personal planner, provided by their company but whom only they meet with - when they want, where they want.
Service levels are selectable. If the employee wants just an RRSP and an 800 number - that’s fine. It’s the base level, (but an open and disclosed relationship). Employees choose if they want to manage the portfolios themselves, use local bank services, or get full service and advice. Either way, the cost to the employer is nothing and all group employees get a Group RRSP solution that fits their needs – a true “perk”.
Thus, the focus changes from just an employee’s RRSP and funds selected, to a family financial plan with tailored advice - Mr. and Mrs. Employee, their retirement savings, debt counselling, mortgage options, TFSA’s and the RESP’s – in short, advice on any financial worry. Full, personalized service for all, plus access to their money all across Canada.
So for a Group RRSP plan to be considered a perk, the Employee Group Services model must provide personal conversations and planning. Gone is the blank form and 1-800 number. A product solution isn’t a perk, employee’s value personal financial attention.
To learn more contact me through this Blog or email me at jason.smith@rbc.com
RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ®Registered trademarks of Royal Bank of Canada. Used under licence. ©2016 RBC Dominion Securities Inc. All rights reserved.
In Quebec, financial planning services are provided by RBC Wealth Management Financial Services Inc. which is licensed as a financial services firm in that province. In the rest of Canada, financial planning services are available through RBC Dominion Securities Inc.