Benchmark: Communicating 401(k) Information
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.
DONNA FENN is the author of Upstarts! How Gen-Y Entrepreneurs Are Rocking the World of Business and 8 Ways You Can Profit From Their Success, an exploration of the ways Gen Y is changing the entrepreneurial landscape.
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