Combine concern about the performance of the marketplace with an increasing number of options under 401(k) plans and the importance of employee education about these plans becomes obvious.
An increasing number of employers see the best way to provide such education is through one-on-one counseling, according to the latest Annual Survey of Profit Sharing and 401(k) Plans, released by the Profit Sharing/401(k) Council of America.
Although holding seminars and using Web sites to offer information and access to frequently asked questions remain popular, the survey found that employees – particularly at smaller companies – were more likely to take advantage of and learn more from one-on-one interaction. For smaller employers (fewer than 49 plan participants), 56.6% obtain advice. For employers with 50-199 participants, only 27.5% sought advice. The number for larger employers (more than 200) dropped to a measly 13.5%.
One advantage that smaller employers enjoy is the ability to offer one-on-one counseling more efficiently. Obviously, an advisor or team of advisors can meet with employees at one or two locations more easily than at dozens or hundreds of job sites. What’s more, the fewer employees and advisors, the more confident the employer can be that the advice offered is consistent.
To make it more convenient for employees to get information about your 401(k) plans, why not let our retirement planning professionals help by providing one-on-one counseling at your workplace? You’ve provided the opportunity; let us help your employees create the reality.
