A survey done by Money Magazine in December 2021* confirmed what many other recent surveys had previously concluded…… A high quality 401(k) plan and an employer match are at the top of the most important financial benefits for employees. The survey found that 65% of employees would be tempted to leave their job for another company that offers a superior 401(k) or other retirement plan. There is a real opportunity in providing a high-caliber 401k retirement benefit, not just in employee morale, but in retention, productivity, and recruiting.
One way to make your retirement benefits stand out is to add a financial wellness benefit that helps employees manage their finances. Having a high-quality plan, along with an engaged financial advisor, can increase the employees’ financial confidence and cement the value of the 401(k) plan. It can drive home the impact of their retirement benefits package in helping them have a comfortable retirement.
In my 36 years of experience in the corporate retirement plan business, I’ve seen too many advisors who operate their 401(k) plans using a “set it and forget it” product. In plans like these, the employees feel lost, rarely have a good understanding of why the plan is important, and how critical it is to take advantage of it. Often, the only change that is needed to optimize your 401k plan is just to replace the advisor with one that has a fully engaged process to give your plan, and employees, the proper amount of attention.
Seek out a financial advisor who focuses on 401(k) plans and employee wellness. It can go a long way towards helping you recruit and retain strong employees in today’s difficult labor market.
*Workers Value a Good 401(k) So Highly, They’re Willing to Quit Their Jobs Over It – money.com.