Dive Brief:
- More than half of business owners say they struggle to communicate about 401(k)s with their employees, according to a survey of 400 business owners by Nationwide.
- The majority of those polled (68%) recognized their responsibility in encouraging employees' 401(k) participation.
- Still, 88% of owners agree the plans offer benefits that are key to attracting and recruiting talent. Another 86% said they believe it improves employee retention.
Dive Insight:
Employees are looking for assistance with their financial well-being; a third of workers polled by the National Business Group on Health in July said they want their employer to assist more with their financial health and planning. Even as employers attempt to meet those needs, usage gaps remain, a recent report from Bank of America revealed. Poor communication, as reported by Nationwide, may contribute to this problem.
Much of this financial planning, which certainly includes 401(k) usage, will play into workers' retirement strategy. A third of employees in a recent study anticipate financial struggles upon retirement or predict they will never be able to retire at all.
Retirement readiness is a top concern for businesses and employees. A recent survey showed 60% of workers have zero retirement assets, while the majority of those who have participated in a retirement fund average only $40,000 in savings. Meanwhile, businesses are left with aging workforces that may dramatically change the flow of talent through their organizations.
