Employee Productivity Wanes After 2 P.M.

Late afternoon is when many workers experience a slump in productivity, according to a survey from Accountemps.

Nearly one-quarter (24%) of respondents said 2:00 to 4:00 p.m. is their least productive time of day, while 29% reported it is from 4:00 to 6:00 p.m. Fifteen percent said they are least productive from noon to 2:00 p.m., 9% said from 10:00 a.m. to noon, and 14% reported they are least productive from 8:00 a.m. to 10:00 a.m.

Get more!  Sign up for PLANSPONSOR newsletters.

Asked if they are more or less productive the week before a major holiday, 32% said they become more productive, with 15% saying “much more” productive and 17% saying “somewhat more” productive. Nearly half (47%) indicated there was no difference in their productivity the week before a holiday.

Meanwhile, nearly 22% reported they are either “somewhat” or “much” less productive before a major holiday.

The survey was developed by Accountemps and conducted by an independent research firm. It includes responses from more than 1,000 U.S. workers 18 years or older and employed in office environments.

Managed Accounts May Suit Some Participants

While target-date funds may hold the most contributions, they can still co-exist with managed accounts..

Recent research from Cerulli Associates takes a critical look at the use of managed accounts in the defined contribution (DC) market, now estimated at $5.2 trillion. As the DC market matures, Cerulli notes that the asset management industry continues to reassess and measure the efficacy of a target-date product as the primary retirement investment solution for most savers, according to “Retirement Markets 2015: Growth Opportunities in Maturing Markets.” 

At the same time, other investment vehicles, such as managed accounts, come in for their share of assessment for their place in a retirement plan. Managed accounts will likely do better in DC plans if they are presented as a service instead of just another investment option, says Jessica Sclafani, associate director at Cerulli. These accounts should complement target-date funds (TDFs), she notes, rather than jockeying for top position.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

Managed accounts, are now increasing in popularity and becoming more sophisticated in their use of technology, even as retirement plans find the due diligence in product selection somewhat challenging. The Government Accountability Office (GAO) noted last year that a lack of guidance and inconsistent information about performance hamper plan sponsors in selecting and overseeing managed account providers.   

One key to using managed accounts correctly is positioning their advantages. Customization is a route to supporting improved participant outcomes, according to Sclafani. Yet the two most common qualified default investment alternatives (QDIAs)—balanced funds and TDFs—do not address financial planning and personalized strategies, she points out, while managed accounts do.

NEXT: Managed accounts particularly suitable for some participants

As participants’ investable assets increase, they become much more interested in planning and strategies tailored to their specific situations, explaining why managed accounts attract so much interest in the DC industry.

Managed accounts may not be right for all participants, the report says. Participants who are nearing retirement, have amassed outside assets and are looking for additional services may find them most useful. Cerulli estimates there are approximately 19.5 million households ages 45 to 69 with investable assets ranging from $100,000 to $2 million. These housesholds, which represent $9.1 trillion in investable assets, are the target market for managed account providers, according to Cerulli.

Managed account providers should partner with DC plan sponsors to make sure a managed account’s distinct advantages—access to personalized advice or the ability to incorporate assets outside the DC plan for a more holistic financial planning experience—are conveyed to participants, the report recommends.

To motivate participants to opt in to a managed account service, plan sponsors and advisers need to help them understand what they are paying for. This requires extra work from both plan sponsor and managed account provider in educating employees.

“Retirement Markets 2015: Growth Opportunities in Maturing Markets,” focuses on trends in the $21.5 trillion retirement marketplace, including assets and growth projections in the different retirement segments—private/public defined benefit plans, private/public defined contribution plans, and the individual retirement account (IRA) market. More information, including how to purchase, is on Cerulli’s website.

«