How would your employees answer this question: What are the top benefits of working for my employer?
Do you think many employees would identify your organization’s 401(k) plan? Organizations sometimes make the mistake of underselling their employee retirement benefits or fail to highlight them at all. As a result, there’s a disconnect between the value that employers believe they’re offering and the value employees see in the benefits.
5 Ways To Demonstrate The Full Value Of Your Employee Benefits Plan
1) Make Enrollment Easy. Automatically enrolling employees in your retirement plan makes participating more convenient. Eliminate excessive paperwork so the enrollment process is hassle-free. If your employees aren’t interested in your 401(k) plan, they can opt out easily. However, automatic enrollment makes the process simpler for those who want to participate.
2) Educate Your Team. If your employees are familiar with your company’s employee benefits, it’s likely they will fully value what you offer. Create a detailed communication strategy to support the enrollment portion of your 401(k) plan. Offer multiple meetings or webinars to explain the details of your benefits plan. Record and document these sessions so employees can reference the materials in the future. Have your human resources representatives and plan trustees available to answer questions and meet with employees one-on-one. And don’t stop educating once employees are enrolled in your retirement benefits plan. Use regular meetings to refresh your employees on the plan’s value.
3) Personalize The Plan. Are you currently offering a generic 401(k) plan, with little value outside of retirement savings? Consider adding personalized financial advice to the benefits plan you offer. Bring in a financial advisor to help your employees develop a financial roadmap tailored to their unique needs. This additional perk demonstrates your commitment to your employees’ financial futures and enhances the value of your plan.
4) Broaden Your Focus. When companies only focus their retirement plan communication and education on employees nearing the end of their careers, they fail to demonstrate the value of their benefits to the entire team. Many employees mistakenly wait until their 40s and 50s to take retirement planning seriously. Make 401(k) plan education and engagement a priority for all employees.
5) Optimize Often. Your employee benefits shouldn’t be set in stone. Review your plan on a regular basis and make changes to better fit your employees’ needs. Seek feedback from employees about your current plan and what changes they would like to see. Then, optimize your plan as necessary.
Your 401(k) plan is an important tool that adds value to the jobs you offer. By demonstrating the full value of your employee benefits, you’ll gain a competitive advantage that enables you to build a stronger workforce.
Are you offering your employees a high-value retirement plan? Talk with a Richard Brothers financial professional about maximizing the value of your employee benefits.
