3 ways you can help employees take advantage of their benefits
From paid time off and retirement plans to health insurance and beyond—you try to make sure your employees have benefits they care about. But what if your employees don’t understand how to get the most out of the benefits provided to them? You can help employees get more out of common, employer-provided benefits. Here’s how:
1. Authorize Health Savings Account integration with your retirement plan
Many employers provide a Health Savings Account (HSA). It can provide value but can be hard for employees to understand how their HSA savings fit into their broader retirement savings. Give your employees a more holistic view of retirement by authorizing a Health Savings Account integration that shows HSA cash and investment balances alongside their retirement plan balance. The Principal® HSA Integration incorporates employee HSA balances into the Retirement Wellness Planner and the Retirement Wellness Score. Plus, it even provides secure single sign-on to log into the HSA provider’s site without needing to remember multiple passwords. Get more information about how you can authorize HSA Integration within your retirement plan (PDF).
2. Offer Volunteer Time Off (VTO)
Offering VTO is a growing trend across industries1. Acknowledge volunteerism by posting photos or sharing internal communications about different events where employees of all job levels have volunteered. When senior leaders take VTO, it helps instill volunteerism as a part of the company culture. You could even choose to partner with a local organization, like a food bank or animal shelter, so employees have a place to start.
3. Encourage employees to use automatic annual increase features
Do your employees understand how much they should be saving to maintain a similar lifestyle after they retire? Only 38% of the American workforce has tried to calculate how much money they will need to live comfortably in retirement2. By providing your employees with a retirement plan, you’ve already set them up for success. But if they’re not contributing at least 10–15% of their salary, they may not be saving enough3. One way employees can steadily work toward the goal of 10–15% contribution rate, is by choosing to increase their contribution rate each year until they reach their goal. You can help by adding automatic features (PDF) to the retirement plan.
For more information about automatic plan features or HSA Integration talk with your financial professional or third party administer. Or give us a call. We want to help. If you have a retirement account call us at 877-475-3436.
1 2018 Employee Benefits: The Evolution of Benefits | Society for Human Resource Management (SHRM).
2 2018 RCS Fact Sheet #3: Preparing for Retirement in America | 2018 EBRI/Greenwald Retirement Confidence Survey.
3 The Cerulli Report | U.S. Evolution of the Retirement Investor 2017.
The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
Principal® does not make available products related to Health Savings Accounts.
The Retirement Wellness Planner information and Retirement Wellness Score are limited only to the inputs and other financial assumptions and is not intended to be a financial plan or investment advice from any company of the Principal Financial Group® or plan sponsor. This calculator only provides education which may be helpful in making personal financial decisions. Responsibility for those decisions is assumed by the participant, not the plan sponsor and not by any member of Principal®. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs.
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