A great 401(k) plan can be an attractive part of any job, but on its own, it may not be enough to attract and retain a younger, more mobile workforce.

While the 401(k) is still the best vehicle for retirement, it’s often not relevant to younger workers. Millennials are focused on other expenses and milestones, like paying down student loan debt, saving for a home, or starting a family.

Millennials are hearing mixed messages about saving and are forced to make tough decisions. Young workers are encouraged to contribute to their 401(k), especially if the company matches their contributions.

Unfortunately, other financial priorities and obligations may prevent workers from contributing as much as they’d like, especially if they’re trying to pay down debts in the short term to be able to contribute more to their retirement later on.

According to a recent Bankrate survey, 57 percent of Americans don’t have enough money to cover a $500 unexpected expense.

While contributing to a 401(k) is still a great way to save for retirement, employees need to find a way to put enough money away for retirement while keeping enough in personal savings to cover emergencies.

The needs of employees are changing; in order to properly attract and retain workers, employers must offer the right benefits.

Taking a more holistic approach to a financial wellness benefit can be a huge draw for many workers, as the flexibility allows them to not only address worries about retirement, student loans, and credit card debt, but also to learn proactive ways to take control of their finances to meet their individual money goals.

Unique benefit offerings like financial wellness programs can differentiate a company and attract top talent. For many millennials, saving into a 401(k) may still just be a dream, not a priority. Financial wellness programs can help employees tackle their current financial stresses.

As their priorities and goals change, a 401(k) may become more attractive, but until then, 401(k) plans are often not enough of an incentive for hiring.

Benefits that accurately meet the needs of the workforce are what will retain talent.

This isn’t to say that the 401(k) isn’t beneficial, but rather that there are other benefits available that do a better job of retaining talent. Young people don’t want to contribute to a retirement plan for their future until they feel secure in the present.

Financial benefits aren’t a one-size-fits-all program. Employees are in different stages in their financial lives and in turn, have different financial priorities. When considering an overall benefits package, the 401(k) alone is not enough for many members of the workforce.

Not all workers need to put money into a retirement plan right now—but they all need to solve the financial issues that keep them up at night.

Chris Whitlow is the founder and CEO of Edukate.

Instant Insights /

Why the 401(k) alone isn&rsquo;t enough to attract and retain workers today

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Why the 401(k) alone isn’t enough to attract and retain workers today