Get Your Employees Off on the Right Savings Approach

Want to spur loyalty for your company among your newest employees? Start by showcasing your care and concern for their future.

Businesses that invest in the futures of their workers often enjoy such side benefits as increased employee morale, lower turnover rates and more.

Here are some ways to get your younger employees off on the right savings approach….

Provide Education

Many workers, young and old, have never received basic financial training.

In fact, a recent report by the Investor Education Foundation of the Financial Industry Regulatory Authority found that 61 percent of American adults couldn't correctly answer more than three in five fundamental financial literacy questions.

This financial illiteracy often leads to a slew of troubles including credit card debt, improper budgeting and the failure to properly save for retirement.

These troubles often also spill into the workplace in the form of reduced productivity due to personal stress.

Help reduce the financial woes of your workers by providing educational workshops on retirement planning, budgeting and more.

Many workplace retirement plan providers offer one-on-one consulting, so inquire if this is a feature offered by your business's plan provider.

Make it Automatic

According to the article, “Goodbye College, Hello Future: Why Retirement Savings Matter in your 20s”, one of the easiest ways to keep retirement savings goals on target is to create a plan.

You can help your employee's keep their retirement savings plans on target by offering the option for automatic paycheck withdrawals into retirement accounts.

Automatic retirement account depositing is now offered by many retirement plan providers, but you'll need to inquire with your workplace plan provider on the specifics.

Increase the Plan's Visibility

Employees won't utilize your workplace benefits if they don't know that the benefits are available.

When each year's enrollment period arrives, make sure that all employees are aware of their option to invest in the workplace's retirement plan.

Set up workshops, offer one-on-one consulting with HR or devise another method of making the retirement plan (as well as the other workplace benefits) more visible.

Offer a Match

Want to entice your younger employees to begin saving for retirement? Offer a match on their investments.

Younger employees are often saddled with a range of expenses, from student loan payments to car payments, and, as such, sometimes don't view retirement planning as a priority among those other obligations.

By offering a match on employee retirement contributions, you may help all employees see increased value in utilizing the workplace's retirement plan.

The match you decide to offer will likely be based on a range of factors, including the business's current financial situation.

Just a few American companies that offer great retirement plan matches are CHG Healthcare Services, a Salt Lake City healthcare staff agency, and Baker Donelson, a Memphis-based law firm.

Look Beyond Retirement Plans

Saving for retirement is important, but so are other financial matters, such as being properly insured.

In addition to promoting the workplace's retirement plan, make sure that the other offered benefits are also receiving their due turn in the spotlight.

Concerned that your business isn't investing enough in the futures of your employees?

Turn things around by providing financial education, by offering automatic deposits into retirement plans and more.

The side benefits of these changes can include increased employee morale and lower turnover rates, among others.