Keeping your workforce fresh
Your business is only as good as your workforce, and your workforce performs best when engaged, empowered and motivated. Long-term employees are especially great – they hold institutional knowledge, gain efficiency through long-term experience at their jobs, and engage and educate the next generation of workers.
Financial insecurity, however, can disrupt the natural balance found in vibrant workplaces. Money worries can lead to stress, absenteeism and lowered productivity. Workers financially unprepared to retire may stay on for years, stagnating advancement in a company. So what can employers do to keep their workforce fresh?
Make your 401(k) more meaningful
First, offer your employees a match and educate them on getting the most out of it. Then encourage regular check-ups to make sure their retirement plan is on the right track. Businesses are continually reviewing their vesting schedule, and many are moving toward immediate 401(k) eligibility. Helping employees save more will give those nearing retirement the confidence to enjoy their golden years and open a spot for new talent.
Managed accounts reduce complexity and keep retirement on track
Simplify the process of retirement investment decision-making. Choosing the right mix of investments in a retirement account is daunting. Most participants are looking for a simplified ‘do it for me’ approach to help navigate the process. Managed accounts give employees the confidence of knowing that an experienced professional is making decisions, tailored to the employee’s situation, risk tolerance and retirement priorities.
Do what you can to make saving automatic
Automatic payroll deductions make workers more likely to save. When people don’t have to take action to save, they are more likely to keep saving and less likely to miss the money they set aside. Payroll deductions for retirement savings are easy to set up. According to a Willis Towers Watson survey, 73% of businesses auto-enroll new participants, and 60% now offer an auto-escalation feature, where the amount saved goes up by a small percentage every year.
HSAs help keep employees healthy physically and financially
A savings tool that is available for today and tomorrow’s health expenses. Unlike FSA’s, you do not have to use your entire health savings in one calendar year. Instead, you can continue to build savings year after year and help with medical expenses that come up even after retirement (when you will likely need the funds the most). And contributions to an HSA offer tax benefits too.
Workplace financial wellness programs can reduce stress
One study says people spend three work hours a week dealing with personal finances. People worry a lot about money, which affects productivity and stress levels and can also contribute to absenteeism. Offering comprehensive financial consulting – addressing issues like building emergency savings, managing debt, and insurance coverage on top of retirement offerings – is one way to help.
You can help keep your workforce fresh in many ways, but solutions aren’t one-size-fits-all. Talk to an Alerus business consultant to learn about the offerings we have for you, and brainstorm with us what else you can do. Our experience working with businesses of all types and our expertise with a range of workplace benefits make Alerus a great place to get fresh ideas.