5 Easy Ways to Boost 401(k) Enrollment at Your Company

Helping your employees save for retirement doesn’t have to be complicated. A strong 401(k) plan can be a game-changer—not just for your team, but for your business too. The time leading up to open enrollment provides you with an opportunity to re-evaluate your plan, your provider, and the support available to help employees engage with their retirement plan.

Whether you’re a small business owner or a company leader, these five tips will help you run a successful 401(k) enrollment and get more people involved.

1. Bring Your 401(k) Provider On-Site

Want to increase 401(k) participation? Make it personal. Ask your 401(k) service provider to meet with your employees face-to-face. One-on-one meetings help people ask questions they might not feel comfortable asking in a group. It’s a great way to help employees understand their retirement plan and feel confident about enrolling.

2. Remind Employees About Support Tools

In addition to these one-on-one meetings, remind your employees about the other forms of support and tools available to them through your service provider. These can include things like:

• Phone support
• Retirement calculators
• Retirement related educational materials

After your employees become eligible to enroll in the plan, ask your provider to follow up with those who haven’t enrolled. A quick reminder can go a long way.

3. Add Features That Encourage Saving

Ask your provider to offer insights into how your plan’s participation rates compare with other, similar plans. If your 401(k) participation rates are low, it might be time to upgrade your plan. Here are two powerful features to consider:

• Auto enrollment: This feature will automatically enroll eligible employees at a pre-determined contribution rate chosen by the employer, usually around 3% to 4%. Employees will be able to opt-out if they prefer, but auto enrollment is a great way to automatically increase overall plan participation across the board.
• Employer match: Implementing an employer match into your plan can encourage employees to participate at a higher rate. For example, match dollar-for-dollar up to 5%, or 50% up to 10%. It’s a powerful way to encourage saving.

These retirement savings strategies can not only boost participation—they can also help your plan pass compliance tests and allow higher contributions for top earners.

4. Review Your Investment Options

It’s a good idea to regularly check in on certain core aspects of the plan to make sure they’re still the right fit for your evolving workforce. One part of your plan you can review leading up to open enrollment is the investment lineup.

• Ask for an investment report: Ask for an analysis of your investments by a respected, unbiased provider. This information should help you spot investments that aren’t performing well and should be moved out of your plan. If your advisor is a 3(38) Investment Manager like Fisher\SMB^TM, they’ll handle this for you. It is part of their fiduciary responsibility to review, monitor, and update your plan’s investment lineup regularly.
• Consider investment options: Also, make sure your plan includes choices for every type of investor:
  • “Do It For Me” approach
  • “Guide Me” approach
  • “Self-Selected” options

Flexible investment options make it easier for employees to choose what’s right for them—and stick with it.

5. Understand and Monitor Your Plan’s Fees

Fees can quietly eat away at retirement savings. Don’t let that happen. Ask your provider for a clear report showing all fees—what you pay and what your employees pay. Compare them to industry averages. If something looks off, dig deeper.

Fees can be difficult to understand, but if left unchecked, they can take a huge bite out of your employees’ retirement savings over the years. Transparent fees are a must for any solid 401(k) plan. They help build trust and protect long-term savings.

Set Your Team Up for Retirement Success

In our experience, these five tips are simple, but they work. When employers take the lead—by offering support, smart features, and clear investment choices, employees respond. Lean on your retirement plan advisor to offer one-on-one support, plenty of educational resources, the right plan features, strong investment choices and reasonable fees, and give yourself and your employees the best opportunity to save for retirement.

Let’s Talk

We’re here to help you and your employees navigate the complexities of 401(k) plans and retirement saving. Whether you’re looking to boost participation, optimize plan features, or simplify investment choices, we’re ready to support your business goals. Contact us today to start the conversation.