3 ways companies can help employees plan for retirement
Employers are always attempting to improve their relationship with their workers. One way they accomplish this goal is by creating comprehensive benefits plans employees can take part in. These options can increase a company's rates of both recruitment and retention, as employees are usually more attracted to and happy with a business that provides perks.
In addition to health offerings, people consider retirement benefits to be one of the most important items organization can provide. According to a study from Towers Watson and Willis, 45 percent of workers consider retirement programs a crucial reason for staying with their current employer. Businesses should strive to continue developing their retirement contribution to their employee's well-being. SBS Payroll takes a closer look at three ways companies can assist their workers in preparing for retirement:
"Automatic employee enrollment is a strong way to help people start saving for retirement."
1. Invest in automation
It's not uncommon for workers to delay contributions to retirement plans as a result of other financial obligations. Companies and their benefits teams need to help employees plan emotionally and monetarily for what the future holds. This action could cause leaders to use methods that wouldn't have been their first choice, including automatic features.
The success of retirement programs can no longer be based on participation alone, as this leaves out the people who have not yet added funds to their 401(k) accounts. To combat this issue and ensure all workers are planning ahead, organizations should invest in elements such as automatic enrollment, gradually increasing contributions and devised default investments, according to the Society for Human Resource Management. While introducing these items is not the end-all, be-all, it is a good start.
2. Include financial elements in wellness program
Organizations across the country are seeing the benefits of introducing wellness programs. While these plans often focus on mental and physical strength by implementing health screenings and exercise options, many are missing a crucial feature. To ensure workers are covered in all areas of health, businesses should add financial well-being to the docket.
This is an element many people struggle with. Effectively managing personal funds can be a difficult task, but help from knowledgeable professionals in the field can go a long way in making employees feel more secure.
Although the financial features added will vary by company, they often include budgeting tools and calculators as well as online videos about a number of monetary topics, according to Forbes. Programs that share a comprehensive financial report at regular intervals – whether monthly or quarterly – can give workers a concrete example of how this wellness element is panning out.
3. Communicate more effectively
Employees wanting to enroll in their company's benefits offerings is not the problem. Rather, the ssue is that workers may not always understand the options available to them. If participation in benefits programs is low, or if people have an extensive list of questions about the items in the plan, it may be a sign that more effective communication is needed.
It's up to human resources and benefits leaders to find ways to explain information and details relating to their benefits more efficiently, according to U.S. News and World Report. Instead of simply sending materials out via email, these teams need to help people get started. One-on-one sessions can help employees better understand the perks that are most advantageous for their well-being.
Companies have learned how important retirement options are to their employee' satisfaction. Yet it's not enough for organizations to simply provide these features. Instead, people rely on their employers to help them understand and prepare for post-retirement life. To ensure these programs are as effective as possible, businesses need to invest in automation, implement financial wellness options and devise ways to communicate benefits information more productively.