5 Tips for Increasing Employee 401(k) Enrollment
Learn how to maximize employee enrollment in your company 401(k) by following five simple but effective tips. These methods work—enrollment data shows that clients typically experience an increase in both participation and deferral rates by instituting these recommended practices.
Schedule your 401(k) service provider for regular on-site meetings with your employees
Help your employees by making sure they have every opportunity to join the plan and really understand how it can benefit them. Providers should be willing to do this at no cost, and allow time for one-on-one sessions with employees.
Remind your employees of the 401(k) support and services available
Regularly remind your employees of the resources offered through your 401(k) service provider, whether it’s an 800-line help desk staffed with people who are familiar with your plan, or scheduled in-person meetings with the provider.
Explore plan features that can encourage more saving and participation
How is your plan doing? Ask your 401(k) service provider to compare your plan against others of similar size, industry, demographics, or other benchmarks. If your plan’s statistics don’t impress, plan feature changes may help. Some changes can encourage participation and savings rates, and may help the plan pass (or avoid) compliance testing.
Review the plan's investment options
Discuss the plan’s investments with your 401(k) service provider to make sure the menu is appropriate for your particular workforce. The menu should not include too many options, which can overwhelm investors, but it should offer enough to meet the needs of a diverse group.
Understand your 401(k) plan's fees
Fees can be difficult to understand, but can take a significant bite out of investment returns. Ask your provider to give you an analysis of your fees along with industry average information, or seek a second opinion from a third party. If your fees don’t look reasonable, ask for an explanation. Consider renegotiating with your provider—or it might be time to find a new one.
Our enrollment tips work: Our clients typically experience a 55% increase in participation rates and an 100% increase in deferral rates.*
*Enrollment data as of 1/1/19
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