Millennial employees are less and less convinced that retirement will happen. Most companies don’t offer pension plans. Private technology and marketing companies, which make up a large percentage of millennials’ employers, don’t have ESPP options or easy retirement plans. 401(k)s are rarely incentivized, and there is a dark cloud looming over the idea of sustainable Social Security.
While there’s not much your company can do about those national trends, you can make your prospective and hired employees feel more optimistic about their own financial futures. Offering a few resources for personal finance and making your HR team more approachable are intangible benefits that both appeal to applicants and make hired millennials stay with your company longer. Here are two resources that won’t break your budget:
1. Make it easier for employees to change their contribution options.
Several studies have already cemented the idea that friction points and inconvenience are the biggest deterrents to retirement savings. If your employees don’t know how to opt-in to the company 401(k) or contribute to their HSA, they’re likely to keep putting it off. So, build your intranet to have a clear procedure. Automate what you can, and publicize contribution windows with email blasts.
2. Curate financial resources.
There’s so much financial information online that it’s almost impossible for anyone to get started. Set aside an afternoon or two to go through basic personal finance and retirement courses or credible videos on YouTube. Your company might not be able to officially endorse the list, but you can certainly pass it around as informal advice.
Entry-level employees and employees just starting to worry about retirement will appreciate the starting point, and it’s a great way to ask your employees what other resources they need.
One of the biggest problems millennials and younger employees face with personal finance is knowing how to start good habits. Acknowledging that problem and providing solutions makes you a more reliable employer. Contact us at Tangram to optimize your workplace.