There’s no easy way to tell staffers about cuts to your 401(k) plan, but the way you deliver that news will ultimately determine what happens next.
For companies that have been forced to scale back or suspend their 401(k) match, communication becomes a major challenge. How do you make sure employees are getting the essential legal info in a compassionate and understanding manner?
While most companies have HR and benefits pros designated to handle these areas, most experts believe it’s the job of the top brass to inform employees on changes of this caliber.
Whether it’s the CEO or the CFO, top leadership should step in. Why? Communication from top-ranking execs holds the most weight and ensures that employees don’t feel in the dark about the company’s direction. It sends the message that everyone is in this together.
It’s also important to make sure managers are prepared to answer any employee questions. Example: When a company cuts its 401(k) match, employers must send out legal info explaining the change — info that is often difficult for the average employee to digest. It’s management’s responsibility to help staffers understand any difficult “legalese.”