As an employer, you are always looking for ways to make your workers more productive and keep them from leaving. While there are numerous approaches you can take to achieve these goals, one that is often overlooked is encouraging your employees to plan for their long-term financial goals. Employees who participate in their 401(k) retirement plans and plan for their long-term financial needs tend to be better employees overall and stay around longer. In this blog post, we will explore the benefits of promoting 401(k) participation among your employees.
Employee Retention
One of the most significant advantages of encouraging employees to plan for their long-term financial future is that it can lead to greater employee retention rates. 79% of employees say that a strong 401(k) plan is important when evaluating a job offer, according to a Charles Schwab survey. Additionally, 61% of employees say that they would be willing to accept a lower salary if the company offered a better retirement plan. This data illustrates that employees value retirement benefits and are more likely to stay with an employer that offers a strong 401(k) program.
Increased Productivity
Employees who participate in their 401(k) plans are more productive overall. According to a study by Aon Hewitt, employees who participated in their 401(k) plan were more engaged, more productive, and had a better sense of well-being than those who did not. Employees who are financially secure are more likely to be focused on their jobs and less likely to be distracted by financial concerns.
Improved Health and Wellness
Another benefit of encouraging your employees to plan for their long-term financial future is that it can lead to improved health and wellness. Money is the leading source of stress for Americans, according to a study conducted by the American Psychological Association. Financial stress can lead to a range of health issues, including anxiety, depression, and high blood pressure. By encouraging 401(k) participation and financial planning, you can alleviate some of the financial strain your employees may be experiencing.
Building Trust and Loyalty
Encouraging your employees to plan for their long-term financial future can also help to build trust and loyalty. When you invest in your employees’ financial futures, they are more likely to feel valued and appreciated. This can lead to greater loyalty and a stronger sense of commitment to your company’s mission and values.
Conclusion
Encouraging your employees to participate in their 401(k) retirement plans and plan for their long-term financial future is a win-win situation for both the employer and the employee. Employees who are financially secure are more productive, engaged, and loyal. Employers benefit from reduced turnover rates and a more engaged and productive workforce. By investing in your employees’ financial future, you are investing in your company’s long-term success.
NetWellth is a leading provider of employee financial wellness programs that can help your team achieve long-term financial stability. Our experts can help you make the most of your 401(k) plan and give you the tools you need to educate and engage your employees. Schedule a free consultation with us today to learn more about how we can help you promote financial security and boost your bottom line. Click here to schedule.
Sited:
“Charles Shwab Survey” – https://content.schwab.com/web/retail/public/about-schwab/schwab_2022_401k_participant_survey_genz_millennials_deck.pdf
“Aon Hewitt Study” – https://www.aonhumancapital.com.au/getmedia/60aa0f9d-f798-4b38-9c26-04bc6a52b176/2013-managing-engagement-during-changing-time.pdf
“American Psychological Study” – https://www.apa.org/news/podcasts/speaking-of-psychology/financial-stress#:~:text=APA’s%20latest%20Stress%20in%20America,sources%20can%20affect%20your%20health.