While almost every company offers a retirement plan, not a lot of them take a hands-on approach to retirement plan administration. Such a passive approach can lead to failure in conveying full plan features and options to their employees. As a result, many employees neither appreciate and participate in the plan nor, if they do, fully maximize its full benefits.
Since millennials are currently the big chunk of the labor force, businesses needed to reinvent their retirement plan in order to make individuals stay for a long period of time as millennials are known to give more value to what a company can offer to their personal growth and long term plans rather than compensation itself.
If you are wondering how companies utilize their retirement plans to increase employee engagement, here are 5 key features that companies might want to adopt in improving employee retention:
Encourage Automatic Savings
If your company is serious about financial wellness, offering automatic salary deduction through the retirement plan may help you achieve this goal. An employee may opt-in and adjust their contributions every so often as part of the policy.
Provide Employer Matching
Implementing a “matching” scheme encourages employees to participate in the plan. Whether the company sets up a double your money scheme or a 50% matching policy, earnings will definitely be much higher than investing the funds on their own.
Create Transparency through Technology
Utilize technology to provide an online platform where employees can enroll to the program, view their balances or choose their investments to better understand the mechanics of their retirement program.
Empower employees by making them choose from pre-approved investment options based on their risk appetite. This will give them the confidence and motivation to track their retirement accounts.
Provide financial assistance to employees by providing loans derived from the retirement fund. Create a loan policy that not only minimizes the risk but also increases the overall investment growth of the fund.
If you’re interested to know more about how to set up and improve your retirement plan, feel free to email us at firstname.lastname@example.org or at email@example.com.