Is your current retirement plan still relevant?
For the most part, retirement plans are set up to retain employees until the retirement age of 60. However, the current workforce landscape is quickly changing. More than 50% of the labor force are millennials and is expected to increase in the next ten years.
Hence, now is the best time to revisit your company objectives and rewards strategy and align it with the current workforce trend.
Here are the following features to be considered for employee retirement plans looking to attract millennials, which composes the majority of the current workforce.
Many companies have incorporated a savings mechanism to their retirement plans allowing employees to voluntarily contribute to the retirement fund which increases their benefit upon separation. The employee chooses the percentage of salary that goes to his/her retirement fund.
One of the best ways to encourage employees to participate in the savings program is through company matching. More companies are now willing to match their employee contributions anywhere from 3% to 8% of the employee’s monthly salary, thereby providing employees an incentive to take part in the fund.
Increased Engagement via Technology
It’s no secret that Millennials are mostly engaged in either their laptops or mobile phones. Providing them a platform where they have online access to monitor their retirement balances would then create further engagement. Through an online portal which can be easily accessed anywhere and anytime, employees can monitor the status of their retirement balances- how much they’ve saved, how much the company has matched, and how much the investment has earned.