If you watch television you may have noticed commercials from financial institutions that encourage retirement savings. There’s one, in particular, that stands out for me. A financial expert gives people ribbon. Each person stretches the ribbon as far as it’ll go across a timeframe laid out in the grass.
The goal is to show how far the money they’ve saved for retirement will—or won’t—last. Sadly, most only have enough saved for five or six years!
The commercial’s concept may be goofy, but its underlying message is scary. It highlights an important message when it comes to our collective financial wellness. According to a recent survey by GoBankingRates, almost half of all Americans are on track to retire with less than $10,000.
The Bureau of Labor Statistics says only 16.5 percent of people have more than $300,000 saved for retirement, and folks age 65 and over spend about $46,000 a year.
We could all be in trouble, unless we do something. As an employer, you can encourage retirement savings with communication. Educate your employees on what they need to know (e.g., Social Security probably won’t be enough). Help them set themselves up well for the future, when they’re no longer working.
Highlight the Power of the 401(k)
The 401(k) plan has been around for decades as a retirement savings tool. Many Americans still don’t know how it works or why they need to participate. Show them. Targeted campaigns illustrate to employees all these plans offer them and their families. To increase engagement and encourage retirement savings, promote tax advantages and the company match, if appropriate.
Highlight and expand on those “what’s in it for me” points when you describe your plan. If your offer a company match, make sure your employees know how much to contribute to get it. It’s one the most powerful savings growth tools available to your workforce. If employees ignore the company match, they ignore free money.
Promote Retirement Planning Tools
Saving for retirement can be intimidating. Many people don’t know how much they’ll need to save and where. Planning tools, like Financial Engines, which is available to us at Trion, can help if people know they exist. Put them front and center in your communications and remind employees how to access and use them to encourage retirement savings. There may be some cost involved to maintain these tools, but the payoffs in employee goodwill and financial security could be enormous.
Highlight Other Savings Opportunities
If your company offers deferred compensation, employee stock purchase plans, pension plans, profit sharing, money purchase plans, or other retirement savings vehicles, point them out in your benefits communication. Teach employees as where they go for more detailed information. Provide links to carrier documents where they can learn more.
Saving for retirement is about more than stocking away money in a 401(K) plan. Use your communications to make sure employees take advantage of all savings opportunities. That way, they can have more funds to put towards their retirement contributions. Show how they’ll pay a lower copay with a visit to an urgent care clinic versus the emergency department. Describe the money-saving benefits and efficacy of generic drugs. Remind them how a covered bi-annual dental visit can prevent costly problems.
Employees may not be aware of everything you offer to help them save money. Show employees you’re serious about helping them build a nest egg for their futures. Encourage retirement savings with your communications so sure they know what you’ve got, and how to get it.
The average American accesses over 30 apps on our smartphone each month. We use them to do everything from learn a new language to look up movie times.
But has your company considered the powerful role apps can play to engage employees in their benefits? Don’t be afraid of an apps-based open enrollment. It may be just the thing to target tech-savvy, time-crunched employees.
Enrollment at Their Fingertips
Did you know Americans spend more time interacting with smartphone apps than watching TV? Sure, some of that time might be spent playing Fortnite or Minecraft, but there are more productive uses of app time.
There’s a strong chance the third-party software you use for open enrollment has an app. Instead of selecting and monitoring benefits from their computers, employees chose them from their smartphones. This may be the secret to reach today’s busy, on-the-go workers. If a large portion of your workforce isn’t deskbound, an open enrollment app makes benefits selection easy.
Apps are key to educate employees about their benefits. Trion’s iBenefits app puts control right in employees’ hands. They can securely view their plan information whenever they want and contact carriers with a simple click.
Meet employees where they are (on their smartphones) and they will value you as an employer. Take the time to communicate the ease of use of these enrollment apps. They help employees stay engaged in their benefits.
Employee procrastination can be a challenge to meeting deadlines. Why not give employees the nudge they need? Some third-party apps send push notifications to remind staff about important open enrollment dates.
Do it Yourself Apps
If you want more control over the features of an open enrollment app, or if you are feeling adventurous, you can create your own app. Proprietary app development is more expensive and time-consuming than using off-the-shelf employee benefits apps. Yet, it offers some convincing pros.
Customized apps offer greater security and easier integration with your existing software. If your employees’ make benefits choices through your company intranet, then a complimentary app may work best. With a DIY app, you control the features and maximize how you engage employees in their benefits.
For the highest quality results, hire a professional app developer. Search for developers with knowledge of employee benefits and experience creating similar apps. The upfront expense of someone with app-building expertise ensures all the kinks are ironed out upon launch.
Communicate About Carrier Apps
After open enrollment, continue the conversation around apps. Do your employees know most carriers offer an app? They can access ID cards, find doctors and schedule appointments, check HSA or FSA balances, and more. Apps aren’t limited to medical carriers. Employees can check and adjust 401(K) balances, get supplemental life insurance quotes, and book conversations with EAP counselors from the palm of their hands.
Your role as their employer is to teach them about these options. Create educational pieces, like short, instructional videos that walk through the apps’ functions. Or, combine in-person and digital education and host a meeting that showcases how to download and access the offerings. Teach employees how they can stay engaged in their benefits with apps throughout the year.
You always need to consider the communications preferences of all your workers. An open enrollment that’s only apps-based would not work. Add apps to the mix of communications options, like online guides and printed booklets and face-to-face meetings. You know your staff best. Tailor your open enrollment communications approach to meet their needs.
It may be too late to introduce apps for this year’s open enrollment. However, it’s not too early to think ahead to next year. What do you want the future of enrollment to look like?