Fred Barstein, CEO & Founder, TPSU/TRAU/401kTV with Plan Sponsor, Ellis – HR Manager
If you are facing challenges in encouraging employees to enroll in the retirement plan, perhaps considering involving their families in the decision-making process could provide a solution. Studies show that family support and understanding of the importance of retirement savings can significantly influence an individual’s decision to participate in such plans. By engaging employees’ families, you not only demonstrate a commitment to their overall financial well-being but also foster a supportive environment that encourages long-term financial planning.
In addition to involving employees’ families, another effective strategy is to provide comprehensive education and communication about the retirement plan. This includes clear explanations of the plan’s benefits, investment options, and potential long-term outcomes. Hosting workshops, webinars, or one-on-one sessions with financial advisors can help employees understand the significance of saving for retirement and empower them to make informed decisions about their financial future. Furthermore, implementing user-friendly online tools and resources can simplify the enrollment process and make it more accessible for employees, thereby removing potential barriers to participation. By combining family involvement with proactive education and communication efforts, organizations can create a supportive culture that prioritizes retirement planning and financial security for all employees.
During a recent dialogue at the TPSU program in Alpharetta, GA, Fred Barstein, CEO and founder of TRAU, TPSU, and 401kTV, interviewed a Plan Sponsor named Ellis, an HR manager from a manufacturing firm with 250 to 300 employees in Atlanta. Ellis shared an innovative approach his previous employer took to increase employee participation in benefits, particularly in the 401(k) plan. By inviting spouses to attend enrollment meetings and annual training sessions, the company saw a significant uptick in participation, from 66% to 81%. Ellis emphasized the importance of involving families in benefits discussions and noted the positive impact it had on employee engagement. Additionally, Ellis discussed plans to review the composition of their 401(k) committee and explore options for increasing auto-escalation caps upon returning to his organization.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein, Founder and CEO at TPSU, 401kTV, and TRAU. Just completed a TPSU program in Alpharetta, Georgia, and I’m here with Ellis. Welcome, Ellis.
Ellis:
Thank you.
Fred Barstein:
Okay if we ask you a few questions?
Ellis:
Absolutely.
Fred Barstein:
Before we do, tell us a little bit about yourselves and the size of your organization.
Ellis:
My name is Ellis, I’m an HR manager for a manufacturing firm between 250 and 300 people south side of Atlanta.
Fred Barstein:
Great. At the program today, you talked about something I’d never heard before about what you do, how you include the family in the benefits. What do you do?
Ellis:
At a previous employer, we had noticed that there are a lot of people simply not enrolling for benefits in 401k, just dismissing it out of hand and we had a feeling they weren’t even reading the materials, et cetera. At some point, we decided that we wanted… We knew these people had families and wanted the families to be involved, so we actually sent a mailing home to their address of record inviting spouses to attend the enrollment meetings and attend the annual 401k training, and we saw a pretty substantial response in benefits. We went from 66% to 81% percent participation, and we added another 6% on the 401k side.
Fred Barstein:
Right. Were the employees mad you did this or…
Ellis:
They didn’t say anything directly to us. I don’t know if they were or not. Imagine possibly, but I think it was good for the families, that goal, that-
Fred Barstein:
The families appreciate it.
Ellis:
That was the goal.
Fred Barstein:
That’s great. That’s very innovative. Congratulations on that.
Final question, a couple of things you picked up today that you may want to do when you get back?
Ellis:
We need to look at the makeup of our 401k committee, so we’re going to get into that, maybe some discussion of some roles being rotational, and definitely want to look at our auto-escalation. I think our cap needs to be increased.
Fred Barstein:
Very good. Well, thank you for your time today.
Ellis:
Thank you.
Fred Barstein:
And thank you for watching 401kTV.
