A recent survey by the Employee Benefit Research Institute indicated that only 64 percent of Americans have saved any money for retirement. Of that 64 percent, the vast majority had less than $25,000 in total savings. Needless to say, that means within your organization the majority of your employees are not adequately preparing for the next stage of life.
This lack of retirement planning can cause unintended consequences to your organization. Retirement-age employees who choose to stay in their job, due to lack of personal savings or just simply due to lack of confidence, can become disengaged and potentially block a more engaged worker from a promotion. This can not only lead to frustration for the organization, but for individual employees.
So what can your organization do to assist your employees with this transition? There are a few simple steps you can follow:
- Provide financial literacy training and resources to employees. This is should be much more than a 401(k) meeting. Help employees understand financial wellness and the importance of saving.
- Have frequent conversations with employees about their professional goals. Keeping a constant and open dialogue with employees helps establish trust and allows you to understand their interests and goals.
- Ensure that you have a well communicated total rewards compensation strategy. Ensuring that employees understand all the benefits your organization provides allows them to make more educated choices about their future.
Assisting your employees through all stages of life is the key to a successful, engaged workforce. If you would like more information on how your organization can better prepare it employees, MSEC can help. Please e-mail HRManager@msec.org.