For many companies, the 401(k) is one of the most valued benefits they offer. It’s also one of the least optimized. Plans are often selected during a moment of growth or transition, then left largely untouched for years—even as the workforce evolves, compensation philosophy shifts, and employee expectations around financial wellness increase.
A recent article from Nava Benefits, a benefits brokerage and technology company, makes the case that today’s HR leaders need more from their brokers when it comes to retirement benefits. The right partner should help design, evaluate, communicate, and evolve the plan over time—not just place coverage and renew contracts.
The article outlines four ways a broker can strengthen a 401(k) strategy. First, vendor selection: a strong broker should help clarify what the plan sponsor is optimizing for—whether that’s lower fees, high-touch service, payroll integration, fiduciary guidance, or a better employee experience—then run a structured evaluation that goes beyond familiarity or a competitive fee quote.
Second, benchmarking. A 401(k) shouldn’t be a set-it-and-forget-it benefit. Brokers can help benchmark employer match structure, eligibility and vesting schedules, participation rates, average deferral rates, and total plan fees. This helps HR leaders answer whether their plan is competitive for recruiting and retention, whether employees are actually using the benefit, and whether plan design features like auto-enrollment and auto-escalation are driving better outcomes.
Third, employee education. Even the best-designed plan falls short if employees don’t understand it. Brokers can help integrate 401(k) messaging into open enrollment, coordinate education sessions with providers, create targeted communications for different employee groups, and reinforce retirement savings as part of broader financial wellness. Timing matters too—new hire onboarding, open enrollment, and major life events are the moments when employees are most likely to engage.
Fourth, managing transitions. Exiting a PEO, completing an acquisition, or reaching a new growth stage often requires reevaluating the retirement plan structure. Without strong coordination, companies risk employee confusion, payroll issues, and missed deadlines. A broker can project-manage these transitions by helping evaluate and select a new provider, design the standalone plan, coordinate integration, and build clear employee communications.
The article also offers a useful gut-check: if your broker can’t confidently answer questions like when the plan was last benchmarked, how fees compare to similar employers, or what the current participation rate is, it may be time to rethink how your retirement strategy is supported.
When designed strategically and supported consistently, a 401(k) can improve retention, strengthen recruiting competitiveness, and reinforce your compensation philosophy. The key is treating it as a living benefit—not a compliance checkbox.
