A strong retirement plan does more than check a compliance box — it plays a meaningful role in financial well-being, talent retention, and long-term employee stability. Yet many organizations struggle with low participation, minimal engagement, and employees who don’t feel confident about their financial future.

Often, the issue isn’t the plan itself — it’s the strategy behind how the plan is designed, communicated, and supported.

Here are practical ways employers can improve participation and help employees achieve better retirement outcomes.

1. Align Plan Design with Human Behavior — Not Just Policy

Employees don’t always make retirement decisions based on logic — they make them based on behavior, emotion, and convenience.

Plan design features that can significantly increase participation and savings include:

• Automatic enrollment

• Automatic escalation of contribution rates

• Default investment options that reduce decision fatigue

When thoughtful behavioral design is implemented, participation increases naturally — without pressure or complexity.

Better approach:

Build plan design around how employees actually make financial decisions.

2. Reduce Financial Barriers That Keep Employees from Enrolling

For many employees, the biggest obstacle to participation isn’t willingness — it’s affordability.

Common barriers include:

• Competing financial pressures

• Lack of budgeting knowledge

• Fear of locking money away

Employers can improve outcomes by:

• Offering flexible contribution options

• Providing financial education resources

• Positioning participation as a small, manageable step

Even modest initial contributions can build momentum and confidence over time.

3. Communicate Beyond Enrollment Season

Employees can’t value — or use — what they don’t understand.

Participation drops when communication is:

• Only delivered during open enrollment

• Full of technical language

• Focused on plan mechanics instead of real-life benefits

High-impact communication:

• Tells stories

• Uses simple, relatable language

• Reinforces benefits throughout the year

Better approach:

Treat retirement education as an ongoing engagement effort, not a one-time event.

4. Give Employees Access to Guidance and Decision Support

Many employees want to participate — they’re just unsure where to start.

Participation improves when employees have:

• Access to advisors or support resources

• Tools that simplify investment choices

• Clear explanations of risk and time horizon

Confidence is one of the strongest predictors of participation and savings behavior.

Better approach:

Provide resources that help employees feel informed rather than overwhelmed.

5. Measure Participation — and Use Data to Improve

Strong retirement plans don’t stand still — they evolve.

Employers should regularly monitor:

• Participation rates

• Average deferral levels

• Plan leakage or loan activity

• Outcomes across employee groups

Data helps leaders identify gaps, test improvements, and demonstrate progress to both employees and leadership.

Better approach:

Treat retirement outcomes as a measurable success metric — not just an administrative task.

The Impact of a Strong Retirement Strategy

When retirement plans are intentional, employees feel supported, employers strengthen retention, and organizations benefit from a more stable, financially confident workforce.

A well-designed strategy turns the plan into a meaningful part of the employee experience — rather than just another benefit option.

Ready to Strengthen Participation and Improve Employee Retirement Outcomes?

If you’re unsure whether your current retirement plan strategy is producing the outcomes you want — or if participation has stalled — now is the right time to take a strategic look at your program.

Instead of a standard plan review, our Executive Advisor leads your team through the Clear Path™ process — a structured discovery and assessment that evaluates plan design, participation trends, communication effectiveness, fiduciary oversight, and employee outcomes. From there, we deliver a Roadmap that outlines practical steps to strengthen engagement, improve participation, and support long-term financial wellness for your team.

👉 Contact our team to begin the Clear Path™ process and get a Roadmap built around your organization and the people who make it successful.