Retirement plans are commonly set up to keep employees until the usual retirement age of sixty (60). However, as the working set up is consistently evolving with millennials making up today’s bulk of the working population, it is essential for organizations to take a unique approach.
It has become quite a common knowledge that millennials are known for being firm on what they want. They are not afraid to leave their company if they think it doesn’t add value to their personal and career development. Hence, companies might want to revisit their objectives and rewards strategy and align them with the current workforce trend.
Here are the following features to consider in setting up an employee retirement plans that could attract and retain millennials:
Incite Automatic Savings
Most 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. Participation in the savings scheme is purely voluntary on the part of the employees.
Arrange Employer Matching
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.
Create a Cloud-base Online Platform
It’s no secret that Millennials are tied up to their mobile devices. Providing them a platform where they have online access to monitor their retirement balances would create further engagement. Employees are able to 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 – all through a self-service online portal.
If you want to know more about how we can help you set up your company’s retirement savings plan, feel free to call or email us at email@example.com.