Benchmark: Communicating 401(k) Information
Graphs displaying information on how various small businesses communicate 401(k) information to employees.
You can increase employee participation in your 401(k) plan if you beef up your communication program, says a recent survey of nearly 900 plan sponsors, 40% of which had fewer than 500 employees. Here's how use of the most popular methods broke down:
Percentage that Percentage that
Communication method use method rely on method
Word of mouth 100% 24%
Enrollment brochures/plan descriptions 98% 81%
Newsletters/benefits brochures 86% 62%
Meetings/surveys 85% 43%
Company's general-information materials 80% 50%
Personalized statements/illustrations 76% 55%
One-on-one counseling 72% 30%
Audiovisual presentations 67% 24%
Payroll stuffers/posters 53% 23%
Source: "Survey on Employee Savings Plans," Foster Higgins, New York City, 1994.
