When a company’s 401k plan has a low participation rate based solely on the contributions not being matched, it’s tough to find ways to get more employees involved. The good news is, there are other ways to increase participation with retirement plans by finding a proactive advisor that will engage each employee with one-on-one attention and services. These types of advisors will often be able to encourage employees to be more apt to save towards their financial future.

If the company is matching contributions, but is still in the bottom 10% of participation rates, the advisor again has several options. When creating a 401k matching contribution in a company, an advisor may promote the company and its owners. Offering 401k contributions is evidence of a C-Suite that genuinely cares about their employees well-being.  And it shows that the company values each employee and wishes they would stay.  We at Gate Key Financial want each employee to feel how much the owners care about them.  A simple way to illustrate the value of a 401k match is by framing it as “free” money for the employees or an instant pay raise. 

With all of the plan-building and preparation, it’s also beneficial to supply lots of good information regarding the plan. Communicating clearly to employees about the plan and its benefits across multiple mediums like: one-on-one meetings, websites, workshops, etc is paramount in building a clear understanding of both the plan itself and the available investment options. 

If you’re looking for an advisor that helps promote the company and enhance the lives of every employee, we at Gate Key Financial are ready.  Click here for more information.