In an effort to offer benefits to smaller employers, Fidelity has launched Fidelity Works, a suite of benefits catered to small and mid-sized businesses, defined by Fidelity as employers with 30 to 2,000 workers.
According to Fidelity, the service will assist employers in managing payroll services, human resources and benefits administration, health savings accounts (HSAs), and retirement savings plans, as well as student debt repayment programs and charitable giving programs.
Chris Hock, head of Fidelity Benefit Marketplace, tells PLANSPONSOR how the benefit offering creates a “one-stop” shop for employers managing various roles. “These plan sponsors manage day-to-day benefits but are also involved in human resources functions, so it’s important to give them this administrative relief,” he says.
Along with small and mid-sized employers, Fidelity Works will be available to any third parties working with these plan sponsors, including advisers, employee benefits brokers, banks and certified public accountants (CPAs), says Fidelity.
While the solutions portfolio includes payroll, HSAs, 401(k) savings and more, the bundle is modular. Plan sponsors can pick and choose the benefits most preferred by their employee base, Hock says. Each service has its own pricing structure, for example, payroll benefits are offered on a per-employee per-month fee, and other benefits are asset-driven. Implementing a bundled service option and individual choosing allows plan sponsors to save money, whether it’s by adding select offerings or through implementing a package.
More information about the bundled solution can be found here.