As another year winds down, there is a lot on business owners minds. How do I keep my best employees? How do I reduce business expenses? Now is a great time to assess portions of your business. Is there a better, cheaper, way to do something? Is there a way to make your teams life easier?
Often my team finds that for companies who haven’t reviewed their 401(k) recently, we’re able to accomplish those things. Reduce costs, increase services, make life easier for your HR team and better for your employees.
1. Automate Your Payroll.
Moreover, payroll integration makes many action items in the 401(k) easier for your payroll or HR team. Ideally, you would set up what's called a 360 integration with your payroll provider. This automates changes to payroll and the 401(k) recordkeeper so your team can focus on other items.
2. Clarify and Benchmark Fees.
Get the basics clarified. What are you paying your record keeper? Your advisor? Your administrator? Are you getting good value compared to the market for those dollars?
3. Get Your Advisor to Help Tell the Story of Your Retirement Plan.
Having a third party, such as your advisor, talk to employees about the great benefits of your 401(k) can be more helpful. For example, an advisor could mention during an education session that your fees are very low relative to the market. This kind of third-party confirmation will add value and confidence that employers might not be able to provide.
4. Find a Level of Understanding with Employees.
I have seen countless times, how excited employees get when their 401(k) improves or fees go down. And I have seen how frustrated employees are when they learn their fees are increasing or their match is going down. (Owners are often surprised at how poorly these meetings go, even when I warn them beforehand.)