They know they need to offer them to stay competitive, and they see the multiple advantages that 401(k) plans bring—both to themselves and to their employees. But still business owners struggle to communicate to employees how important such plans are, and how important it is that they participate.

These are among the findings of a new survey from Nationwide, which also says that the problem is bigger for women business owners and for younger ones, those aged 18–34.

And it's definitely a challenge to offer 401(k)s, although the benefits—attracting and recruiting top talent (88 percent); tax advantages for both one's business and employees (88 percent); improving employee retention (86 percent); and employees viewing a 401(k) as a necessary benefit (84 percent)—are just as definitely worth the effort.

But despite the fact that almost 90 percent of business owners say that their plans offer tools and and resources to encourage employee participation, 53 percent of business owners still struggle with getting across to employees the importance of participation and the benefits of doing so.

The percentage increases for women business owners (60 percent) and younger business owners 65 percent), and the reasons for that lack of understanding vary by age too.

Older business owners, the study finds—those 55 and older— are more likely to believe employees don't participate because of a lack of funds, while younger ones—the 18–34 crowd—attribute it to employees having other options.

And 52 percent of business owners overall say employees think 401(k)s are irrelevant and just aren't interested.

The challenges they cite in providing 401(k)s include the financial cost (45 percent), encouraging and managing employee participation (41 percent), administrative headaches (such as paperwork for plan administration) (37 percent) and a lack of knowledge around starting or maintaining a plan (27 percent).

But despite all this, 92 percent of business owners say the hassle is worth it.

However, there is one big fly in the ointment: 65 percent say that an economic recession could impede their ability to provide 401(k) plans to their workers.

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Employers still struggle to educate employees about 401(k)s

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