Month: December 2015

 

Retirement concerns are on the minds of many Americans. According to the National Institute on Retirement Security, a non-profit research and education organization that recently conducted a survey on the subject, 83 percent are concerned that current economic conditions will affect their retirement. Additionally, 70 percent believe it is harder to retire today than it was for previous generations—and many are planning to remain in the workforce longer as a result.

While we wouldn’t wish the distress of perceived financial insecurity on anyone, the situation does present an opportunity for employers to leverage benefits including retirement planning education and assistance to their advantage—helping their workers in the process.

 

Job Seekers Consider Benefits Packages

A survey conducted by Monster.com, an online employment solution, found that most job seekers consider the benefits packages of employers before accepting an employment offer. While it’s not surprising that 32 percent of the respondents ranked a healthcare plan as the most important benefit package component, 8 percent preferred an employer-sponsored retirement plan.

While one might think a retirement plan would hold more attraction for older workers, it is not always the case. According to ADP Research Institute, 66 percent of younger professionals are counting on more help from their employers to achieve financial security through benefits. Only 31 percent of older workers feel the same way.

A survey conducted by ManpowerGroup, an employment firm, found 52 percent of American employers were having difficulty finding suitable talent to fill job openings—even though national unemployment remains high. In an environment where you face considerable competition for the best workers, including retirement planning education, assistance and a 401(k) in your benefits package could increase your chances of landing top candidates.

 

Benefits Also Impact Employee Retention

Fifty-nine percent of employees say that retirement benefits influence their company loyalty according to ADP Research Institute. It’s easy to see why. Data from the Employee Benefits Research Institute shows that 64 percent of employees enrolled in employer-sponsored retirement plans feel confident in their ability to save enough money to retire comfortably. Only 48 percent of those who do not participate in such a program can say the same.

 

Consider Worker Preferences When Designing a Retirement Plan Benefit

If you want to get the greatest benefit from an employer-sponsored retirement plan, you need to design it in a way that will attract most of your employees—and these days that means Generation X and Generation Y workers. These professionals value continuous access to educational tools and resources online as well as integration with social media and mobile applications. They are also drawn to newer 401(k) options such as automatic opt-in and target date funds according to ADP.

Whether you already offer retirement planning education and assistance as part of your benefits package or have recently begun considering the merits of such a move, talk with your benefits provider to learn more about creating the optimal win-win situation for your company and your employees.

 

 

 

Do you include employee training and development in your benefits package? You should—research has revealed that workers consider such benefits when deciding whether to accept a new position or stay with their current employer. In fact, one study conducted by The Society for Human Resource Management discovered a direct correlation between employee turnover and development opportunities—or the lack thereof.

Unfortunately, not all employee-training investments represent time and money well spent. According to training experts, many companies make mistakes that severely reduce the benefit of their training programs. Consider the following missteps you should avoid when offering an employee training opportunity.

 

1. Avoid large groups. It’s difficult to have a productive discussion with dozens of people in the room—particularly if you want all employees present to participate. When possible, limit training sessions to a dozen or fewer workers at a time and everyone will feel more comfortable chiming in.

2. Avoid pointless games. Creative team-building activities may sound like a fun way to capture your employees’ interest and break the ice, but make sure they have a direct relation to the goal of the training. If they don’t, it will be harder to get all of your workers to participate.

3. Avoid complicated training materials. While different workers will have different learning styles—such as visual, auditory and kinesthetic—keeping the material simple will enhance the experience of all. This is another area where multiple small training groups can be beneficial, allowing you to fine-tune your presentation based on the questions in each previous session.

4. Avoid the lecture. Unless you want your employees to spend the session doodling in their notebook or checking Facebook on their cell phone, don’t hire trainers who rely on lectures. Instead, look for professionals who are adept at initiating and steering conversations without dominating discussions. The more he prompts your employees to participate, the more they will engage in the opportunity.

5. Avoid irrelevant information. Training opportunities that are directly connected to your employees’ jobs and development goals are always better investments than those that focus on information or ideas that are not immediately applicable. The easiest way to determine the training your workers would most like to receive is to survey them on the topic.

6. Avoid discomfort. Uncomfortable chairs, an air conditioner on the fritz, and too many noisy distractions will sap the attention of any employee. For best results, hold your employee training sessions in a comfortable, quiet room. If you must meet during normal lunch hours, make sure you provide refreshments as well.

Some studies have shown training programs can increase employee retention by as much as 70 percent. When you consider the expense that goes into finding, hiring and onboarding replacement workers, it’s easy to see that greater retention is better for your company’s bottom line. If you’d like further advice on implementing a program at your organization, consult your benefits advisor.