Wall Street Crisis: CAI on 6 Ways to Manage
Employee Concerns About Their 401(k)
Greensboro, N.C. – The largest employers’ association in the state, Capital Associated Industries, Inc. (CAI), says another day of financial woes on Wall Street leads to more employee concerns about the stability of their retirement plan. How can employers in the Triad help employees maintain confidence in their company and assurance with their benefits plan?
Lynn Unsworth, regional manager of CAI, shares a few tips for employers on how to handle this difficult human resources situation that can have a big impact on employee morale.
1) Don’t give employees financial advice. Unsworth says that employers can give employees the resources they need to make decisions, but advises against giving employees advice on selecting stocks and where they should invest their money.
2) Educate employees on their options. Unsworth recommends companies talk with their employees on restrictions and penalties if they want to withdraw money from their 401(k). Employees need to be educated on the mechanics of their plan.
3) Bring in investment advisors to meet with employees. Companies should enlist their plan vendor to work with employees on their individual investment strategies. Employers need to make sure their employees are engaged in a conversation with financial and investment advisors about their 401(k).
4) Help employees avoid looking at their 401(k) performance every day. Employers need to reinforce to employees that a 401(k) is a long-term investment and help them understand they are investing for retirement.
5) Release a benefits statement to all your employees. Employees often underestimate the value in their hidden paycheck. Unsworth recommends employers share with their employees all the benefits they offer to help them learn the value of their paycheck and what vacation and holidays are worth.
6) Reassure employees that their money is safeguarded. Employers should make sure their employees know their 401(k) is audited and heavily regulated by the Department of Labor and IRS. Employees need to be reassured the money they are investing is segregated from the company’s general operating funds.
About CAI, Inc
CAI is a non-profit employers’ association founded in 1963 and serves the greater Research Triangle, Piedmont Triad, and 65 central and eastern counties in North Carolina. With offices in Raleigh and Greensboro, CAI provides 1,200 member companies with management information, day-to-day telephone guidance, and training and human resources services.
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