A 401(k) specialist has the time and processes to dedicate to your employees. However, whether you handle things internally or decide to outsource, there are two key areas to make the initiative a success:

Give employees useful information. Although a 401(k) is complicated in a lot of ways, user experience is where businesses and service providers can make the most progress for employees. No matter how complicated the actual plan is, the choices, pros and cons, and actions employees must take should be as simple as possible. Handing workers a 25-page legal document is not helpful, but giving them a two-slide overview of how the plan works and what exactly they need to do is useful. Make sure to focus on the important points of how they can participate to relieve any anxiety around retirement planning.

Provide one-on-one assistance. Many employees are often left to navigate 401(k) enrollment websites on their own, which can be confusing. They might not understand or be comfortable with the risk and uncertainty of investing. They might fear clicking the wrong button or picking the wrong amount or investment options. That often leads people to avoid the decision altogether, so they don't make the wrong one. However, not making a decision is the worst decision for employees when it comes to retirement. In my experience, it's striking how much you can increase participation rates, savings, and good investment choices simply by sitting down with employees individually. Finding a service provider who can sit down with employees — or familiarizing yourself with the intricacies of the 401(k) plan and doing this yourself — can give your team confidence and increase engagement with your 401(k).

Getting your team started with 401(k) planning

Workers who are secure in their finances are happier and more productive because they know they can safely retire when and how they want. This makes their last few years much easier on their co-workers and the companies they work for. But they often need assistance from HR or the benefits service provider to get there.

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