As discussed in last month’s blog, employers must rethink the formation of corporate benefits packages to better attract and retain high-quality employees. The key point was creating a benefits package with different and refreshed options (or even deconstructing it to allow for greater choice and flexibility), but an equally important piece of the puzzle is effectively communicating with employees.
Remember, multiple generations make up the modern workforce, and it’s important to understand their different communication needs. Regardless of their generation, each employee may have unique preferences; these should be attuned to and included as the benefits package is created, announced, and implemented.
While the retirement plan is one slice of the holistic benefits package, it comes with its own set of challenges. For example, employee enrollment and deferral eligibility may be different than eligibility to receive employer contributions. An 18-year-old employee just starting their first job may not understand any of those terms, while a 60-year-old transitioning to a new employer might be full of questions about rollovers, in-service distributions, and more.
Will these employees learn best at a group meeting? With customized resource sheets? Working with a financial advisor in a one-on-one setting? Watching a pre-recorded, customized enrollment video? Don’t limit the possibilities, because the answer is likely a combination of several of these options; each generation will desire a range of communication channels. Technology offers more, too – consider email, text messaging, company intranet, webinars, online tools, social media, and apps. Some employees may be content with one-time efforts; others will desire constant engagement and more frequent messaging.
While carrying different expectations for relationships with their employers, commonalities abound among the generations. Employees want fair treatment, to be acknowledged for a job well done, and trust they are working in the right place. Paying attention to these desires, as well as incorporating a flexible benefits package with a healthy variety of communication channels, is ultimately a win for everyone.
Employees really do want to understand their benefits, and as an employer, it is your responsibility to effectively communicate with them. If your current methods aren’t measuring up, call the Shepherd Financial team. We’re here to help.
Are you a procrastinator? Do you get a rush from delaying things until their final deadlines? You’re certainly not alone. Many people will sheepishly admit to sometimes pushing work to the last minute. But it could be a problem if you’re part of the 20% of the population known as chronic procrastinators, whose delays create havoc and undermine goals in multiple areas of their lives.
At the halfway point of 2018, we have to ask: where do you fall on the spectrum? And is your procrastination affecting others? As a plan sponsor, it’s your fiduciary duty to prioritize your company’s retirement plan and participants. So those financial wellness goals you set in January? Pretty important. The pending decisions about plan design? Critical and time sensitive.
First, remind yourself of the priority items for this year. If this was never a discussion with your advisor, schedule a review meeting right now. You need to have a clear picture of where you’re going to determine the steps you should be taking along the way. Analyze what adjustments might need to be made to those goals since a great deal of change can occur over the course of six months.
With regard to financial wellness, consider your employee population and anything you’ve learned about them. Do you know their communication preferences? It may be helpful to integrate those attributes and desires in your overall delivery strategy. Examine the type and frequency of participant meetings. Are your employees engaged? Do they have access to appropriate resources? If the answer to either question is no, consider the changes needed to help your employees retire well. You should also think about how you currently measure the success of your financial wellness program – what are your metrics? What results have you seen so far this year?
Perhaps you want to implement a safe harbor contribution provision in your plan design. Well, don’t delay – missing the deadline can be costly. To obtain the safe harbor exemption from ADP and ACP testing for the remainder of the year and ensure an active safe harbor plan by January 1st, the setup process should begin no later than September 15th. Since you must provide notices to your employees at least 30 days (but no more than 90 days) before the beginning of the plan year, notices should be delivered by December 1st.
So even if you’re infamous for your procrastinating ways, here’s your gentle reminder: your deadline is now. Do the things you’ve been delaying – at least when it comes to your company’s retirement plan.