Participation Matters to Employers and Employees
February 01, 2013
Numerous employers have tried various communication “campaigns” only to give up in frustration when the desired outcome wasn’t reached – instead choosing to provide just basic/required plan communications and leave the rest up to employees. However, studies have concluded there is a high correlation between the rate of employee turnover and lack of participation in retirement saving plans.
One retailer’s study noted that employees who signed up for its benefit plans tended to view their employment as longer term than those who did not. With the cost of turnover between 100% and 200% of pay, getting more employees to participate in your plans can actually positively impact earnings even though benefit costs will rise. Just ask a store manager or shift supervisor how much down time they spend trying to staff a shift or how the constant churn of employees impacts the quality of services or production levels.
It is time to take a fresh look at new “education” tools and techniques that are changing employee behaviors (which differ based on age) and deploy strategies that will benefit both employers and employees.
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