Helping Socially Responsible Companies Partner With Socially Responsible Vendors in the HR Space
Helping Socially Responsible Companies Partner With Socially Responsible Vendors in the HR Space
Why Should I run a RFP for my Benefit ServiCES
Socially Conscious Reasons
Employees are asking their employers, what are we doing with regard to helping society in general? Shouldn't our vendors match our company, especially in the HR Space? In addition, many large employers are making basic business decisions regarding their provider such as which social media platform to use for advertising.
Cost Savings
Many HR vendors do not need to be renewed and their contracts simply roll over. This does does not optimize cost efficiency. In the post pandemic world, costs are going to be under even more scrutiny.
Health Care Plans
Did your current provider deal with you differently during the pandemic? Did they bring new ideas such as telehealth? Were they proactive rather than reactive?
Retirement Plans
The Department of Labor does scrutinize whether plan sponsors pay attention to fees especially when paid by plan participants. The best practice is to review all vendors every 3-5 years. It does not mean you have to replace the vendor, but checking the market is a reasonable method to assure you have filled your fiduciary responsibilities. Many times, plan sponsors solely focus on the recordkeeper and not the investment consultant. Both must be looked at separately. hrtech socially conscious business human resources
Legal Landscape
Massachusetts Institute of Technology was required by their settlement to run a RFP process. https://www.plansponsor.com/18-1m-mit-fiduciary-breach-lawsuit-settlement-includes-rfp-process/
401k fees are the subject of lawsuits for companies that have not run a RFP process. https://www.chubb.com/us-en/_assets/doc/2020-05.06-17-01-0271-war-on-retirement-plan-fees.pdf