Conrad Siegel worked with a leading HVAC, plumbing, and mechanical services organization that was rapidly growing throughout the country. The organization has been an employee-owned company since 2010, with 2,000 participants in its ESOP and 401(k) benefit plans, many of which were hired through the acquisition of over 20 companies within a 10-year span.
With such rapid growth, Conrad Siegel had to structure an integrated ESOP and 401(k) plan strategy that specifically considered their aggressive growth strategy. This would keep the organization focused on growing the business while Conrad Siegel automated all facets of these plans, including conversions and onboarding employees from their former plans.
Challenges
For an organization that acquires companies rapidly, a constant flow of 401(k) conversions could be tedious and time-consuming for the HR team. This organization was interested in working with a partner that could help with the administration of both the ESOP and 401(k). This could alleviate ongoing management responsibilities for their internal teams and help streamline the conversion process for future acquisitions.
Approach
Our strategy for this client focused on taking as much off their plate as possible and creating an elegant system that simplified conversions and employee onboarding to their new 401(k) and ESOP plans. We also took over the bulk of the plan administration responsibilities, handling everything from participant inquiries and distribution notices to participant training and ongoing employee support (both in-person and online).
Key Steps
Onboarding Strategy
We designed a simplified process to rapidly convert and onboard new employees into the 401(k) and ESOP plans to ensure a smooth transition, minimizing disruptions for employees.
Employee Education & Support
We provided a seamless experience for participants to answer their questions early and walk them through the features of their new plans. We provided a comprehensive online experience with a single login to manage both plans, allowing participants to view their account balances and transaction details, and to effortlessly make changes to their contributions.
Administrative Support
Conrad Siegel took over plan administration responsibilities, handling everything from participant inquiries to onboarding, ensuring the organization’s team could focus on strategic initiatives rather than day-to-day plan management.
Performance Check-ins
We developed a plan to provide periodic updates to the client to share plan performance and ensure the current strategy is working, while keeping the organization focused on their core business.
Results
The implementation of the 401(k)/ESOP consolidation strategy was executed seamlessly, without disruption to employees. We rapidly transferred the client’s prior administrative responsibilities to the team at Conrad Siegel. Participants were given a unified platform, with 80% participating in the 401(k) plan—a notably higher engagement rate.
The client’s HR team benefited from reduced administrative burdens, as Conrad Siegel took on the responsibility of plan management, participant onboarding, and training.
Consolidated Management
Having both ESOP and 401(k) plans managed by a single provider streamlined operations and provided a consistent participant experience.
Simplified Planning
The ease of accessing and managing retirement benefits in one place simplified retirement planning for participants.
Administrative Support
Conrad Siegel took over the bulk of plan administration responsibilities, handling everything from participant inquiries, distribution notices, participant training, onboarding, and ongoing employee support.
Cohesive Education
Having Conrad Siegel manage both plans allowed us to provide the client’s employees with an education program that was simple and streamlined, incorporating education for both plans.
Reduced Administration
By delegating plan administration to Conrad Siegel, the organization’s HR team was free to focus on their core business priorities.
Seamless Transitions
Future acquisitions are further simplified in onboarding new employees to the 401(k) and ESOP plans systematically with minimal disruption.