Increasing the efficiency of the Retirement Plan Recordkeeping is essential to ensure accurate, timely, and secure participant data management, compliance with regulations, and cost-effective administration of retirement plans. Adopting contemporary technology in recordkeeping operations is the best way to achieve this.

In a recent study, over 96% of plan sponsors said technology is crucial when selecting a new retirement recordkeeper. As per its findings, plan sponsors now gauge their retirement recordkeepers’ performance by their capacity to utilize technology for supporting participants’ financial well-being, as it has become the new benchmark in the industry.

Digitalizing recordkeepers’ work primarily entails automation of their operations & optimizing their workflow with the help of suitable tools.

Understanding Automation & Workflow Optimization

Automation involves the use of technology and digital tools to perform specific tasks or processes with minimal human intervention. The primary goal of automation is to streamline and expedite repetitive, manual, and time-consuming tasks, leading to increased efficiency, reduced errors, and cost savings.

On the other hand, workflow optimization is a broader strategy aimed at improving the efficiency and effectiveness of the entire process or series of tasks within retirement plan recordkeeping. It involves analyzing the entire workflow, identifying bottlenecks, redundancies, and inefficiencies, and reconfiguring the sequence of tasks to create a smoother, more streamlined process.

While the former focuses on executing individual tasks rather than the entire sequence of actions in a process, the latter may include eliminating unnecessary steps, clarifying roles and responsibilities, redesigning information flows, and introducing automation where appropriate. The objective is to enhance the overall performance and outcomes of the entire process, including the interactions between automated and manual tasks.

How can automation & workflow optimization improve recordkeeping?

With automation, recordkeeping operations can benefit from increased speed and accuracy in data processing, reduced human errors and associated costs, timely generation of reports and compliance documentation, and improved participant experience through faster responses and access to account information.

Optimizing recordkeeping workflow enables smoother process flow and reduced delays, eliminating redundancies and inefficiencies and clearer roles and responsibilities, leading to better collaboration and integration of automation and manual tasks for a cohesive workflow.

Implementing both automation & workflow optimization can improve the following processes in retirement plan recordkeeping:

  • Data Entry and Management
  • Document Management
  • Contribution Processing
  • Investment Management
  • Compliance Monitoring
  • Reporting and Analytics
  • Exception Handling and Error Resolution

Combining automation and workflow optimization in the retirement plan industry creates a powerful synergy that leads to significant efficiency improvements. Automation reduces manual tasks and enhances accuracy, while workflow optimization ensures that the remaining manual tasks are organized cohesively and efficiently.

Combining automation and workflow optimization is essential for recordkeepers to stay ahead of their competition as they can provide a better participant experience, which is the need of the hour for the retirement plan industry. It also allows recordkeepers to adapt to changing industry demands and maintain a competitive edge in the present landscape.

Tools that enable Automation & Workflow Optimization

  • Retirement Plan Administration Software: Manages all aspects of retirement plans, including participant data, contributions, investments, and reporting.
  • Document Management Systems: Digital platforms for securely storing, organizing, and retrieving documents related to retirement plan recordkeeping.
  • Workflow Automation Tools: Automates and streamlines various tasks & processes within retirement plan administration, reducing manual effort and improving efficiency.
  • Self-Service Platforms: Empower plan participants to manage their retirement accounts independently through online enrollment and account management.
  • Electronic Signature Platforms: Enables the electronic signing of documents, making processes like plan enrollment and participant consent more efficient.
  • Data Integration and Analytics Tools: Consolidates data from various sources and provides insights through analytics, aiding decision-making and optimizing plan performance.
  • Communication and Education Tools: Helps with effectively communicating with participants and providing educational resources to enhance financial literacy.
  • Compliance and Risk Management Tools: Ensure regulatory compliance, manage risks, and maintain the security and integrity of retirement plan data and operations.

Congruent’s CORE – One solution for Recordkeeping Automation & Workflow Optimization needs

Congruent Solutions’ CORE Suite of Solutions helps automate the day-to-day processes associated with retirement plan administration with tools focused on easing recordkeeping operations. It is designed for a more intuitive approach towards automation by helping increase operational efficiencies without adding concerns about infrastructure or data security. We also offer virtualized infrastructure, offering the flexibility to scale up or down as required and choosing solutions customized for your recordkeeping needs.

Back to Blog Home