Human Interest, a provider of automated 401(k) plans, is looking to take the customer experience to a new level.
Beginning March 1, workers contributing to 401(k) plans managed by Human Interest — and their employers — can expect faster responses to inquiries, faster processing and speedier distributions than what they might experience at less-automated or so-called legacy firms.
The company made the promise official through a “customer experience guarantee” announced Feb. 25.
Among other things, the guarantee commits to providing plan participants with distributions to their bank accounts within two business days, a much faster response time than is prevalent in the industry, according to Human Interest.
The company estimates that it can take up to 15 business days for retirement savers to receive a check from 401(k) providers based on information that it pulled from the public websites of record keepers.
“The ability to retire with peace of mind is a really big deal, so why has it been an industry standard to leave people on hold, or worse, not even pick up their calls?” asked Rakesh Mahajan, chief revenue officer at Human Interest, rhetorically in a news release.
Mahajan noted that the growing frequency of hurricanes, fires and other calamities makes it especially important for retirement savers to receive their distributions quickly.
"When Hurricane Milton hit Florida, many homeowners needed their retirement plans to cope with the destruction," Mahajan said. "As customers called us, we were able to process their requests and deposit funds into bank accounts within two days so they could start rebuilding their lives. Typical time frames for legacy providers can take days — or even weeks — to process distributions via the faxing of paper forms and checks being delivered by mail, leaving people sitting and waiting for help."
Mercer and Callan, two big-name consultants to workplace retirement savings plans, were unable to weigh in on Human Interest’s assertions.
In addition to getting funds to participants faster, Human Interest promises to answer their calls within five minutes during business hours. The company also pledges to provide employers offering the plans and their administrators nonautomated responses to their inquiries within four business hours and to process employer and employee contributions to the plans within five business days of running payroll.
If the company fails to deliver on its commitments, administrators will receive 50% off their next invoice and participants a $25 gift card.
The company is positioning the new guarantee as a “first-of-its-kind service-level agreement standard” and another example of how the company is redefining the retirement industry “by revolutionizing what it means to commit and care for customers,” it said in the news release.
The new guarantee comes just a year after the company opened its Center of Excellence in Lindon, Utah, which houses nearly all of Human Interest’s 250 employees.
“We want to lead by example and encourage other providers to prioritize customer needs over outdated practices,” Mahajan said.
