Regardless of which retirement investment structure you choose, employee education is the single most important function to the overall success of your organization’s retirement plan. In addition to increasing participation in contribution plans by providing employees with a clear understanding of the benefits available to them, establishing an employee education plan can lead to increased satisfaction and loyalty. Such a plan will also make your company more attractive to potential employees. 

I provide a solid educational program that seeks to accomplish five goals:

• Ensure that participants understand the importance of investing for retirement
• Emphasize the need to start saving today on a
  pre-tax basis
• Educate participants about their plan and its investment options
• Explain the concept and significance of diversification
• Reinforce the need to develop and stay with a long-term strategy.

To meet these goals, I offer a comprehensive, four-step approach to employee education that consists of:

• Research
• Goals and objective
• Implementation
• Ongoing education

RESEARCH

The research process is the critical first step in ensuring a thorough understanding of your company’s diverse and unique needs. After conducting an analysis of your employee base, I will make specific recommendations and work with you to develop a strategy for communicating the benefits of your company’s retirement plan.

Before implementing an employee education program, it is essential to determine:

• Employees’ understanding as it pertains to saving for retirement
• What goals employees have for their retirement years
• Employees’ knowledge as it relates to investing in the plan
• Employees’ perception of plan benefits and features 
• What educational topics best suit employees’
  current needs 
• The most effective medium(s) to deliver messages
• What internal resources can be leveraged to properly implement the plan

GOALS AND OBJECTIVES

After the initial analysis is completed in the research phase of the program, goals for the plan can be established - Increasing low participation rates  which are attributed to a variety of factors.

Some employees may tell themselves that they can’t participate because they believe that:

• “I can’t afford to save.”
• “Retirement is too far off to be worrying about it now.”
• “I don’t understand my plan’s benefits.”

Increasing participation can be accomplished if effective and frequent educational programs are used to communicate the benefits of the plan. These programs create financially confident employees by using a variety of proven methods that demonstrate how the plan can easily and effectively help them save for their future. Frequent communication regarding how the plan can work to help employees save not only increases participation among them, but demonstrates that their employer is concerned about their needs – an important factor in nurturing employee loyalty.

Introducing general plan changes

In an age of shrinking corporate benefits, it is common for your employees to be concerned when they hear about their benefits changing, even if the changes are positive. For this reason, it is vital to communicate plan changes as early as possible in an affirming way, highlighting improvements and addressing initial questions employees may have about their change in benefits. Some suggested approaches include letters, fliers, posters, voicemail
and e-mail.

Implementing specific plan changes

Often, plan changes, such as the addition of plan provision, affect only a segmented population. I can develop a strategy that uses the appropriate communication materials to address issues that may arise for these targeted groups. If a plan option is added, for instance, we will ensure that the employees who have never had a retirement plan understand that they can now make pre-tax and/or post tax contributions to the plan. I teach the concepts of compounding and savings by using examples that are easy to understand

IMPLEMENTATION

Each quarter, employees will receive account statements that detail balances and investment performance, as well as illustrate asset allocation and other account summary information. In addition, I will evaluate the current programs that target the appropriate audiences.

Highlights of the ongoing education portion of the program include:

• Targeted educational modules - These modules are based on issues such as “Diversifying your investment portfolio” and “Planning for the long run.”
• Online participant account information – Participants can access their account via the Internet. Employees can inquire about balances, pricing, performance, asset allocation and contribution elections. Interactive calculators and worksheets help them assess their financial planning goals and objectives.
• Availability of an investment professional – I am always available during normal business hours to assist employees with questions on the plan, asset allocation strategies and/or personal financial planning.
• Educational seminars – I will provide ongoing financial seminars on a variety of topics, including estate planning, distribution decision making and asset allocation advice.

BUILDING FINANCIAL SECURITY . . . ONE INVESTOR AT A TIME

By listening to each employee like they are the only investor in the world, I can help them assess their present situation and design a plan to help meet their retirement goals. My business is people and their financial well-being. I devote my best efforts to meeting and, when possible, exceeding my clients’ expectations. My objective is to put you – and your employees – first to serve you both effectively, efficiently and distinctively – whatever your retirement plan needs.

Contact me today to see how my employee education plan can help your employees build financial security for their future.