When it comes to keeping employees engaged, benefits can go a long way. Sometimes a competitive salary is not enough. The Insured Retirement Institute found that only 27 percent of baby boomers are confident that they will have enough money to last through their retirement. If you can help your employees support their retirement planning, it can go a long way in keep retention high.
I once tried to recruit a Director to a VP position. It was a much better salary but he refused. His reason? He had been participating in his employer’s retirement plan for several years and has a lot invested. Although changing companies would result in a higher salary, he stayed for the retirement plan.
Having a solid retirement plan, however, may not be enough. Companies need to find a way to get their employee participation rate high.
The following Slideshare by Mowery & Schoenfeld shares 5 Steps a Company can take to Increase Employee Participation in Your Retirement Plan.
Step 1: Teach them about the general concepts of investing
Never assume that employees are well informed about basic economic and investing concepts. Start with the basics such as compounding growth and teaching tax implications of different types of savings plans. These concepts can be taught through a course or a pamphlet attached to information on the company’s retirement plan.
Step 2: Explain how the plan functions
Make it clear what they need to do prior to enrollment. Then define steps needed to enroll and any information they may need after enrollment.
Step 3: Provide information in various formats
People have different preferences when it comes to how they consume and learn information. By providing the information in various formats, you increase the likelihood of reaching different segments of your workforce.
Step 4: Minimize risky business
Ensure you do your research before choosing to do business with anyone.
Step 5: Offer information regularly
Keep employees informed and educated on a consistent basis. The more informed someone is about a topic, the more comfortable they will be to engage in it. As participation increases, plan fees may diminish, freeing up cash for you to either offer additional benefits or reinvest in the company.