One of the keys to increasing participation in your company’s retirement plan is making things easier for employees. These plan features do just that.
So if your 401(k) provider doesn’t offer these things, you’re probably not getting the most bang for your buck.
1. The ability to change contribution rates online. People crave convenience. If workers have to go through the hassle of filling out a form every time they want to change their contribution rate, they’re less likely to do anything.
Your 401(k) provider’s website should be equipped with a tool that allows employees to increase or decrease their contribution rates with just a few clicks of the mouse.
2. A take-home pay calculator. Employees want to know how much increasing their contributions will affect their take-home pay — down to the last penny.
By entering gross annual salary, pay period, contribution percentage rate, etc., these calculators give employees a clear picture of whether they can really afford to bump up their 401(k) contribution rate. An example of this tool can be found here.
