Megan Schneider, CEO, Daybright Financial

Megan Schneider, CEO of Daybright Financial, spoke to Invest: about the company’s growth through extensive acquisitions over the last 17 years to become one of the nation’s largest independent, privately held firms specializing in employee benefits, retirement plans, and all their associated compliance needs. “Our teams are focused on determining how we can best provide holistic employee benefits and retirement solutions for our clients to help them achieve their goals,” she said.

How would you describe Daybright, and what have been the most notable achievements or milestones for your team in recent years?

Our corporate headquarters is in New Jersey, but we are nationally focused with clients in all 50 states. Daybright Financial is an employee benefits and retirement organization with a mission to simplify health and financial wellness for all, today and tomorrow. This goal is exactly what our branding symbolizes: for all of your days, we will help make them brighter, and for your tomorrows, we will help you plan for the future. This new branding is instrumental in rallying our team members nationwide in our daily efforts to serve our communities. 

We have over 1,400 team members, including over 300 in India. We serve over 18,000 employers and are of service to 3.6 million participants. Our teams are focused on determining how we can best provide holistic employee benefits and retirement solutions for our clients to help them achieve their goals. 

Many of our clients are in the public sector, and we serve over 50% of the school districts in the United States. We also have an extensive presence in the private sector community, as well as nonprofits and other types of government entities. 

Recent achievements include our rebranding this past March, which was so important to us as a business because it further assisted our clients in understanding who Daybright is and what we do. We have grown significantly over the last 17 years, including the acquisition of 61 companies. All 61 organizations came to us with their own brands and local presences, so our rebranding goal is to represent our vast, varied network of team members and rally us around our central mission under the single name of Daybright.  

In addition to the Daybright Financial brand, we also launched a dedicated independent divisional team under the brand of Daybright Broker Solutions, to offer various specialty services in and around employee benefits and enrollment, technology, general agency services, product placement, worksite benefits and voluntary benefit expertise to benefits brokers, consultants and professional employer organizations.

How has Daybright’s focus on health and financial wellness for employees helped position itself advantageously with current and future clients?

The Daybright branding has helped strengthen our position among our clients because so many of our clients did not realize that we offered such a wide range of solutions and services. For example, we could have a K-12 public school that is a client of our retirement team, but perhaps they did not fully recognize that we had this wealth of offerings in the employee benefits sector. The new branding enables them to understand that we are all one company. 

What factors do you believe have driven New Jersey’s growth within the state’s financial services sector?

Our New Jersey client base is growing, and we benefit from having a great deal of talent from the state. We established our corporate headquarters in Iselin 17 years ago and have remained here ever since. We also recently doubled our office space to house even more team members as we expand and acquire new talent and organizations, and welcome guests from around the country. Daybright’s headquarters also benefits from its proximity to Newark Airport and Manhattan.

What trends are you observing in employee benefits and retirement planning among New Jersey-based companies, especially in the post-pandemic era?

The industry continues to grow and evolve, most importantly because access to employee benefits is incredibly important and the recent passing of Secure 2.0 has increased the focus on offering defined contribution retirement plans, 401(k)s to employees of small- and medium-sized businesses. We have seen the industry continue to grow, especially as regulation changes have created new opportunities for access. Daybright’s business model is centered around simplifying health and financial wellness, due to the sheer number of choices and decisions to be made around selecting employee benefits and planning for retirement. We help companies make those decisions to benefit their No. 1 asset: their staff. 

Some trends seen in our industry involve leveraging technology to offer better service and personalize employee benefits. This includes self-service tools and automated enrollment processes. All of the technology in and around our industry continues to drive change, along with the broader legislative environment. 

Daybright is backed by two prominent private equity firms, which are focused on investing in businesses that provide impactful, positive societal change for communities across America. The work we do to help people gain access to employee benefits and retirement solutions is critical to enhancing health and financial wellness in this country.

Regarding new acquisitions, what strategies have been most effective in integrating these entities under the Daybright umbrella?

What sets Daybright apart from our competition is that we take a curated approach when we look for potential acquisitions. Daybright is a singular company, but when we evaluate a business for acquisition, we spend time with their people, understand their culture and determine what drives their business success, while analyzing how we can help each other grow. We have a large upfront planning session to discuss integration and spend time together to understand how to grow together. This focus on mutual growth and integration is a major component of our success story.

There is a ton of M&A activity within our industry, and I think consolidation will continue to be active for the foreseeable future. This will create new opportunities for acquisitions and will create more competition, which is not necessarily a bad thing if a business can stand out.

What types of financial challenges are your clients facing, and how does your team work to mitigate those issues?

Our clients struggle to keep costs down and find and retain great talent. Daybright works to provide best-in-class employee benefits and retirement plans that help them do this. Talent is typically their No. 1 asset, so striking the right balance of attractive benefits and retirement programs at the best pricing is front and center for our teams. Some key solutions we offer include 403(b) and 457(b) compliance work, 401(k) record-keeping and administration, as well as worksite benefits and other employee benefits solutions.

How are regional policy changes, such as tax incentives or regulatory shifts, impacting your clients’ financial planning?

Secure 2.0 was an important piece of legislation recently passed that affects the retirement industry. This legislation will enable better access for 401(k) retirement plans, especially for smaller employers. We strive to help employers of all sizes, and our goal is to be the top choice provider for small- and mid-size employers to offer 401(k) plans to their team members.

Looking ahead, what are the top priorities and goals for Daybright in the next three to five years?

Over the next few years, we will continue to grow as an organization. We plan to double in size due to both organic and inorganic growth. Daybright’s goal is to continue as the employee benefits and retirement provider of choice that employers think of to simplify health and financial wellness for their team members.