Cindy Del Rio, Negosentro.com | Today’s workforce is mobile, demanding, and prepared to change jobs and careers far more readily than in the past. Accordingly, companies with solid retirement plans and high participation gain a significant competitive advantage in terms of employee retention.
In addition to improved retention — which is an enormous factor in operating efficiency and profitability — high participation in a retirement plan produces other important benefits, including:
- Tax savings for the enterprise
- Greater ability to attract high-quality employees
- Builds a sense of loyalty among employees
Of course, the ultimate benefit of a retirement plan is giving employees a way to save for their future in a very tax-efficient manner.
The infographic below, “5 Steps To Increase Employee Participation In Your Retirement Plan,” goes into some depth on how to promote the plan to employees (and prospective employees). The information should prove useful to both companies that have retirement plans in place and ones that are considering implementing one.
At the heart of building participation is education. For too many employees (even ones nearing retirement), personal financial planning is something of a mystery. In particular, people seldom realize:
- The financial importance of saving for retirement
- The amount of money it will take to retire comfortably
- The tremendous advantage of starting to save for retirement early on
Jumping into the details of a retirement plan, discussing its nuances and options, will not be persuasive (or fully understood) unless employees have a foundation of knowledge regarding personal financial planning. However, once that knowledge base has been established, a company should then proceed to outline plan features and benefits in a variety of formats, to appeal to different learning styles.
For more insights on building participation in the company retirement plan, please review the infographic now.