While many companies offer retirement plans, those with an active approach to plan administration for their Defined Contribution plans would tend to increase employee awareness and participation. Consequently, employees would appreciate and maximize the full benefits of the retirement plan.
Given that millennials form a significant portion of the labor force, it becomes crucial for businesses to revamp their retirement plans in order to retain talent. Millennials would also look for company’s offerings for personal growth and long-term plans besides compensation.
To leverage retirement plans and increase employee engagement, here are five key features that companies can adopt to enhance employee retention:
Encourage Automatic Savings: By offering automatic salary deductions through the retirement plan, employees can effortlessly contribute to their retirement savings, promoting financial wellness and long-term security.
Provide Employer Matching: Implementing a “matching” scheme where the company contributes a percentage of the employee’s retirement plan contributions encourages active participation, boosts savings, and amplifies the benefits of the plan.
Foster Transparency through Technology: Utilizing technology to create an online platform allows employees to easily enroll, access information about their retirement plan, check their balances, and make informed investment decisions, enhancing their understanding and engagement with the program.
Offer Choices: Granting employees the autonomy to choose from a range of pre-approved investment options tailored to their risk appetite empowers them to take ownership of their retirement savings, increasing their motivation and involvement in monitoring and managing their accounts.
Extend Financial Assistance: Providing employees with access to loans derived from the retirement fund not only offers a financial safety net but also promotes the growth of the overall investment by ensuring the funds are utilized within the company’s ecosystem, benefitting both the employee and the retirement plan.
To ensure you’re up to date with the current trends in retirement planning, don’t hesitate to reach out to us today. Email us at email@example.com to discover the cutting-edge strategies and insights that can help you optimize your retirement plan and stay ahead in this ever-evolving landscape. Let us be your trusted partner in securing a prosperous future for you and your employees.