Engaged Employees More Likely to Prepare for Retirement
Quick! Name a way to increase employees’ retirement readiness. Did you respond, “build employee engagement”? That’s the answer Richard Glass of Investment Horizons, Inc. would give. In his white paper, “Employee Engagement, Corporate Profitability, and Retirement Readiness,"
Glass argues that there is a connection between how engaged employees are and how well they prepare financially for their retirement.
Glass discusses the importance of employers exercising their fiduciary duties of monitoring and communicating about their retirement plans — especially in light of recent studies that show that majority of employers are disengaged regarding their benefits and planning for the future. For instance, he cites a Towers Watson study that found that an important factor in enabling workers to reach a high level of engagement is helping them achieve peace of mind over their financial well-being and health.
Glass cites statistics that show that 70 percent of American workers are disengaged. He suggests that most employers have ignored this and concludes that this indicates that they are similarly unconcerned about their employees’ financial health, including retirement readiness. And changing that attitude, he argues, is essential if an employer is to view retirement plans from its employees’ perspective.
John Iekel is Senior Writer and Editor for the ASPPA Net and NTSA Net portals.