Engaging 401k Participants Through Personalized Emails
Engaging 401k Participants Through Personalized Emails. At a TPSU program held at Loyola University, the HR director of a 400+ person company with multiple locations describes how she engages employees working at her company that have not joined the 401k plan highlighting what they are missing through the company’s match.
Every month, the HR director runs a report to determine who is eligible to join the company’s retirement plan but not yet participating and how much they would receive from the match. Though it takes time to run the report and send out the email, the response has been very positive. Employees who are leaving money on the table often respond that they simply forgot to enroll or didn’t realize that they were missing out.
Though auto enrollment is a great tool to engage 401k participants and increase participation, it is also important to engage workers in their 401k or 403b plan. Canned messages from providers who they may not know (or trust) will be less effective than a personalized message from someone at the company. Research also shows that video is more effective, especially for younger workers.
Though it’s easier to create personalized emails than videos, there are companies like Idomoo that create mass customized videos that would be able to let each eligible worker exactly how much they are leaving on the table. Plan sponsors and advisors need to push their record keeper to create scalable solutions that can be leveraged across millions of participants to better engage workers.
Though she will continue with her customized email campaign, the HR director is also considering auto enrollment and is particularly intrigued by re-enrollment which many organizations are starting to institute to get current employees that may not have joined the 401k or 403b plan enrolled automatically.
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