Many companies mistakenly base their vendor selection on investment considerations alone. Of course, you want a program that offers investment vehicles with good track records and appropriate risk. However, our experience shows that the most common reason for leaving a vendor is poor administration. To create a long-term relationship, you need a vendor that is committed to serving the particular needs of your company and your employee population.

We begin with the "Wish List Worksheet", which will help you focus on the particular needs of your employee population based on your company’s corporate culture. A company’s culture usually stems from its line of business. Depending on whether your company is involved in manufacturing, wholesaling, exporting, distributing, or retailing, you will have distinct employee demographics. Your 401(k) needs will depend mainly upon your employee population.

For example, if you have three different work shifts, with work being done around-the-clock you may want your employees to have extensive telephone and internet access to their accounts, even during non-working hours. If you employ a highly skilled workforce, your participating employees may benefit from compensation in unusual assets, such as closely held stock, or they may wish to invest in atypical 401(k) assets such as REITS and limited partnerships or brokerage directed accounts. If your workforce is mature, with an average age of 40 or 50, you may want a vendor that has extensive pre-retirement counseling services.