Published Date: 08/04/2014
By Persis Swift
Research has revealed that many employees would not be saving for their retirement if they did not have a plan from work. Studies also show that workers believe that their employer, above family and friends, has the most influence in getting them to start saving for retirement.
As an employer, knowing that employees place importance on company retirement plans should prompt you to help them utilize tools and information that are at their disposal for planning a successful retirement.
Try the three strategies below to help them invest in their future:
Communicate and Educate
Many workers believe that their employer is one of the only credible sources for retirement information. Communicate to your staff why saving for the future now is the best way to be financially stable in retirement. Constantly remind workers of the different saving options and tools your company provides. Make sure they understand each option, and help them choose the best one for their situation.
Organizations are still being cautious with their budgets and are reducing funding in certain business areas. Benefit allocations tend to go first on the chopping block. Instead of drastically reducing the cost of each employee benefit, such as retirement and paid-time off, ask employees how they would prefer their benefits to be distributed. Offer workers several options, and have them vote to choose the best option for the overall organization.
Keep It Up
Continue to offer your employees the best savings and retirement plans your organization can provide. If your company elected to match employee savings in their 401(K)s, do not stop because budgets are smaller. If your company is really unable to maintain the company match, ask employees to increase the amount of money they are saving to make up the difference. Consistently communicate the importance of saving.
Educate your employees on the importance of saving for their retirement, and keep them informed on any changes to your workplace benefits. For more information on how to educate your employees on the importance of saving, please join us for the 2014 Compensation and Benefits Conference on August 14 and 15 at the McKimmon Center in Raleigh. Jake Connors of CapTrust will share his presentation, Retirement Planning: Best Practices for HR Professionals, at this year’s conference.
Additional presentations at the conference will include: The Heart of Innovation — Building High Performing Teams; Why Performance Management Fails…and How to Avoid It; The Future of Attraction, Retention and Motivation: How Compensation Fits into the Process; Leverage Marketplace Trends When Making Decisions about Compensation and Benefits Strategies; and many more!
Visit www.capital.org/compconf to see presentation descriptions and speaker bios. Register today!