What Plan Sponsors Want in a Retirement Advisor: MassMutual

Among respondents who were already working with an advisor, fiduciary services were also important. Sponsors who didn't have an advisor were more focused on someone who could reduce plan costs.

Larger plans had slightly different needs from smaller plans, the survey found. Sponsors with more than $25 million were concerned about fiduciary responsibility of their advisor and lower costs, but also the overall plan design, benefits available to participants and the investment menu.

Where Can Advisors Improve?

The study found that although the majority of advised sponsors are satisfied with their advisors, there's room for improvement. Just a third of sponsors with less than $1 million in plan assets say their advisor is very valuable, compared with 57% of those with between $5 million and $25 million.

"While employers clearly gravitate to retirement plan advisors with specific attributes, our research shows that few advisors succinctly articulate their value proposition or can give an elevator speech about their value," Mathew Greenwald, president of Greenwald & Associates, which conducted the survey for MassMutual, said in a statement. "Advisors who can clearly articulate their value and differentiate themselves from their competition have a real edge in the marketplace."

Educating employees in group meetings and sponsors on new developments were two areas respondents rated their advisors as only fair or poor. Advisors serving plans with less than $1 million in assets especially need to focus on providing information on new developments in retirement plans, according to the report.

"Our study shows that advisors often aren't practiced in succinctly articulating their added value," Sarynski said. "There are clear opportunities for advisors to enhance their practice management to reflect plan sponsor preferences."

— Read 3 Questions Retirement Plan Sponsors Ask About Advisors on ThinkAdvisor.