For younger employees, the value of participating in a 401(k) plan is not always immediately clear—which makes effective communication especially important.
At a recent TPSU program at the Thunderbird School of Global Management at Arizona State University, Jennifer Nelson of Sima Systems shared how she encouraged a new employee to enroll after becoming eligible for the company’s generous 100% match up to 6%.
“I told her, ‘You’re leaving money on the table,'” Jennifer said.
When reminders didn’t work, Jennifer took a more personal approach. Because the employee happened to be the daughter of a friend, Jennifer jokingly warned that she would get her parents involved if needed. Eventually, the persistence paid off, and the employee enrolled in the plan.
While lighthearted, the story points to a serious challenge many employers face. Younger workers may not fully understand the value of employer matching contributions or the long-term cost of delaying participation. Retirement can feel far away, making it easy to overlook the immediate benefit of saving early.
Jennifer’s experience is also a reminder that effective employee communication does not always have to be complicated. Sometimes, it is about noticing who may need extra guidance, explaining the value in plain language, and continuing the conversation until the message connects.
For plan sponsors, HR teams, and payroll professionals, that kind of engagement can make a meaningful difference in helping employees take the first step toward better retirement outcomes.
Read the Full Transcript Here:
Fred Barstein:
This is Fred Barstein, CEO and Founder of 401kTV and TPSU, The Plan Sponsor University. We just completed a program here in downtown Phoenix at the Thunderbird School of Global Management, which is part of Arizona State University.
And I’m here with Jennifer. I remembered you! Welcome, Jennifer.
Jennifer Nelson:
Thank you.
Fred:
Is it okay if we ask you a few questions?
Jennifer:
Yes.
Fred:
Before we do, tell us your first name, your role, and approximately how many employees your organization has.
Jennifer:
My name is Jennifer Nelson, and I work for Sima Systems. We’re an accounting and payroll development company, so there were kind of two niches for me to come here with this. We have only 17 employees, but we also do payroll services for fiscal agents. There’s a lot involved with payroll—there are a lot of payroll laws—so I came just to kind of freshen up.
Fred:
Right. One of the things you mentioned that really struck me was what you do when employees decide not to participate in the retirement plan. You shared one particular story. Can you tell us about it?
Jennifer:
Yes—my sweet girl, Katie.
She started with us just under two years ago, and I believe our waiting period is 90 days. So once she became eligible, I told her, “Hey, it’s time. You need to get on that. You’re leaving money on the table.”
Our company provides a 100% match on up to 6%, so she was leaving a lot of money on the table.
She also happened to be a friend’s daughter, so I told her, “Do you need me to get your parents involved? I’ll call your father. I’ll call your mother. You need to get on this.”
My pestering finally paid off, and she signed up this month.
Fred:
Very good! Did you actually call her mother?
Jennifer:
I told her mother.
Fred: (laughing)
There you go!
Jennifer:
I said, “I told her I was going to talk to you about it.”
Fred:
That’s a great story.
Final question: What are a couple of things you learned today, and would you recommend TPSU?
Jennifer:
Oh, I would absolutely recommend it.
I actually think some of our consultants would benefit from attending because they help set up 401(k) plans within payroll software. It’s good to understand all the different types of retirement plans because when you’re working with different companies, you don’t always know what they offer. It’s helpful to understand what’s available and be able to ask, “Do you offer this? Do you offer that?”
So yes, I would definitely recommend it.
Fred:
And as you’ve heard—and as we hear at every program—payroll is so important. It’s complex, and it’s critical to get it right.
Jennifer, thanks so much for your time.
Jennifer:
Thank you.
Fred:
And thank you for watching 401kTV. Please stay tuned.
