November is coming, and so is the deadline to choose next year’s benefit packages for most companies. Are your employees prepared?
While it is true that companies cannot instruct employees to choose one plan over the other, they can provide resources and information, so that employees feel confident they are making the right choices. This confidence has an added perk; employees who feel prepared and informed with their annual benefit enrollment also experience higher job satisfaction. Why? By ensuring employees make the most of their entire benefits package, these companies demonstrate an invested interest in the lives and futures of their employees.
And it goes both ways.
In their article, Attracting and Keeping Employees: The Strategic Value of Employee Benefits, authors Jonathan Gardner and Steve Nyce state, “There is an even stronger link between employees who are highly engaged, those who want to work for their current employer until retirement, and those who cite the retirement program as an important reason for joining and staying with the company. Effective retirement plans are clearly related to employees' emotional connection to their employer.”
One of the best things a company can do is stress the importance of benefit planning. “Employees should understand that mindlessly choosing benefits can—and most likely will—result in lost or misspent income,” said John Koupal, Vice Present of Security National Bank’s Employee Benefit Administration Division. “Not taking advantage of 401(K) company matches, for instance, is a common mistake.”
Setting the right tone isn’t just a one-and-done deal, however; the companies who have the highest engagement and plan participation not only have communication in place during the enrollment period but also at key points throughout the year and during critical times along an employee's career path.
- Remind employees that you as a company want them to make the most of their paychecks, and their ability to save for retirement.
- Educate employees about how retirement benefits are an important part of their total compensation package.
- Celebrate vesting milestones and the benefits of loyalty and tenure.
- Provide training and education to every level of your organization, so employees are empowered to learn, or at least know where to go when they have questions.
- Demonstrate the differences between your retirement savings offerings and those offered by competitors. Stay ahead of the curve in these competitive arenas.
- Set aside adequate time for benefit planning and create materials that can easily be shared with life partners.
- Most importantly, provide one-on-one meetings with dedicated financial advisors so that personal savings goals can be merged with retirement savings vehicles.
“No one wants to work harder than they need to when it comes to saving or planning for retirement,” adds John Koupal. “When a company has the right investment team, tools, and education in place, its employees are more confident in their ability to balance the present while planning and shaping their future.”
Security National Bank has a team of its own dedicated exclusively to providing retirement packages and support for businesses and their employees. We pride ourselves on the quality of our investments and our dedication to customer service on every level.
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