Addressing the Importance of a Retirement Plan with your Employees

December 6th, 2013

As a manager, you can encourage employees to think long-term and establish a concrete retirement plan, which is essential to overall morale and productivity. When your team members feel secure with their future and their lives, it might be surprising to see how productive and focused they will be. Just as with any outside problems, employees can sometimes be distracted easily and not produce quality work. It could be due to the fact some people struggle with seeing the future and can only think in the short term, here and now. How can you, the employer, promote a sense of well-being and security within your staff?

Focus on the Employees
Too many times a company will focus on the perks they offer at the business rather than what they offer for the future. Sure, you may have free snacks, coffee, and even flexible scheduling but are you employees able to sleep at night because their future is secure? No one can guarantee a perfect future but you can offer ways to make it easier. While they may not express it right away, your staff will appreciate your attention to the long-term more than how many holiday parties or free lunches you provide. There’s no need for the retirement plan to destroy the company budget and communicating the benefits of it will help increase enrollment. Helping them understand why they should care is the first step in a retirement plan.

Changing Times need Changing Plans
In the past, employees used to use tools such as overtime, their mortgage, savings bonds, and valuable life insurance policies to get them through retirement; this is no longer the case. The majority of Americans don’t pay off their mortgage in full by retirement and can’t use it as equity or as a way funding their future. More and more employees are using the plans offered by their employers because it’s an easier option and usually carry tax benefits. Companies who match employees contribution are even more attractive to current employees and future ones. One of the best ways to impart the importance of future planning to your team is just simple communication. If they are aware of what is offered and how easy it is to reap the benefits, more employees will jump on board with a retirement plan.

Communication is Key
You care about your employees and want them to feel secure in their future; by simply letting them know the available plans and how it will help can convey that feeling. Gather your teams together and present the retirement plans offered, as well as how important it is to plan for the future. Most people want to prepare but don’t know how so give them the tools in order to make the best decision possible.

Have additional questions? Curious how Pinnacle Workforce can assist you and your organization? Contact us today for more information!

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