State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
January 25, 2005
Employers Take Aim at Raising 401(k) Participation

Employers are boosting their efforts to educate and make it easier for employees to participate in their 401(k) plans in 2005, according to a survey of 200 large employers by Hewitt Associates.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

Almost 90 percent of employers reported that they plan to focus on making sure their employees understand how their 401(k) plan works, the value of it, and how to access it.

They also plan to take steps to promote personal responsibility for retirement planning and initiate actions designed to increase 401(k) plan participation. Seven out of 10 employers (70 percent) report they will focus on offering additional support to employees to manage the diversification of their 401(k) plan.

Almost half of companies (47 percent) say they are also likely to automate certain features in their 401(k) plan as a way to increase participation and quality of participation. Key areas of focus for those companies include automatic enrollment, automatic contribution rate increase features, and automatic rebalancing.

"Many employers are acknowledging that regardless of their efforts to educate workers on the importance of saving for retirement, there will always be some who are just not going to actively participate on their own," says Lori Lucas of Hewitt Associates. "Automating the 401(k) plan is a way that enables such employees to better maximize the value of their plan without requiring a lot of time or effort on the part of the employee."

Featured Free Resource:
Cost Per Hire Calculator
Twitter  Facebook  Linked In
Follow Us
HCMNPWS1
Copyright © 2024 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on https://Compensation.BLR.com
Document URL: https://compensation.blr.com/Compensation-news/Retirement-Planning/Employee-Retirement/Employers-Take-Aim-at-Raising-401k-Participation-158734