Simplifying how an ESOP & 401(k) can work together

Case Highlights

Integrated plan design between 401(k) and ESOP plans
Consistent experience/education for participants
Single website login to view/manage both plans
Retirement projections that include both plans
Same team managing both plans
Combined compliance testing

Simplifying how an ESOP & 401(k) can work together

HB Global is the holding company to multiple successful business units that lead their markets in HVAC, plumbing, and mechanical services. HB Global has been an employee-owned company since 2010, with 2,000 participants in its ESOP and 401(k) benefit plans, many of which hired through acquisition of over 20 companies by HB Global within a 10-year span.

With such rapid growth, Conrad Siegel had to structure an integrated ESOP and 401(k) plan strategy for HB Global that specifically considered their aggressive growth strategy. This would keep HB Global focused on growing the business while Conrad Siegel automated all facets of these plans, including conversions and onboarding employees from their former plans.

Challenge

For a company that acquires companies rapidly, a constant flow of 401(k) conversions could be tedious and time-consuming for the HR team. HB Global 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 HB Global 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).

“As a participant, if I want to go online or see my details, I see it all in one place for all plans. The MyConradSiegel portal is very easy to use, I’m detail oriented so I’m able to go in on a weekly basis and see my accounts like balances and transaction details.”
Jim Whalen, CFO HB Global
“The onboarding, training, and communication provided by Conrad Siegel is a big benefit for us. It builds goodwill, we know Conrad Siegel is on top of it.”
Jim Whalen, CFO HB Global
“It’s the team. It’s knowing Trevor and Tara —I know who our team is. I know we can reach out to Trevor to help us fill out any required forms and keep us compliant. There’s something about the size of Conrad Siegel that ‘feels good.’ It’s that team feel that’s really important.”
Jim Whalen, CFO HB Global
“I can change my contribution amount easily, see percentages and dollars, it’s not limited in how I can change things. I don’t feel it’s lacking in any way.”
Jim Whalen, CFOHB Global
“I feel good about the conversion process — we’ve had to convert a few divisions and their 401(k) plans. Conversions need babysitting, and I cannot think of any issues. They felt seamless to me.”
Jim Whalen, CFOHB Global

Key steps

Onboarding Strategy

We designed a simplified process to rapidly convert and onboard new employees to HB Global’s 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 that HB Global’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 HB Global to share plan performance and ensure the current strategy is working, while keeping HB Global 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 HB Global’s prior administrative responsibilities to the team at Conrad Siegel. HB Global employees were given a unified platform, with 80% participating in the 401(k) plan—a notably higher engagement rate.

HB Global’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.

Cohesive Education

Having Conrad Siegel manage both plans allowed us to provide HB Global employees with an education program that was simple and streamlined, incorporating education for both plans.

Simplified Planning

The ease of accessing and managing retirement benefits in one place simplified retirement planning for participants.

Reduced Administration

By delegating plan administration to Conrad Siegel, HB Global’s HR team was free to focus on their core business priorities.

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.

Seamless Transitions

Future acquisitions are further simplified in onboarding new employees to the 401(k) and ESOP plans systematically with minimal disruption.