A small but very meaningful gift from the boss on Worker’s Day

“What better acknowledgement of the value your workers add to your business than helping them to have the best possible chance of a decent retirement?” asks Berger.

Employers who help their staff save for retirement by setting up a fund, and perhaps also contributing to it, are often seen as a cut above the rest, as employers of choice. Even if they don’t make contributions to retirement savings funds, employers will help their staff benefit from corporate pricing, which reduces the fees they pay.

“If you really want to show your staff you care, which will certainly motivate them, how about interrogating whether you are doing right by them in terms of your choice of retirement fund provider,” Berger says.

He argues that employers need to bear in mind that the money workers accumulate in their retirement pot over the course of their careers will be the biggest investment many of them ever make. As such, setting up a retirement fund for employees should not be a casual commitment, but a carefully considered strategy that forms part of an employer’s business model.

“Good intentions aren’t enough when entering the world of long-term investing for your workforce,” adds Cedrick Pila, Business Development Manager at 10X Investments.

“Enrolling staff in a retirement fund carries a moral obligation to ensure that your employees’ investment has a solid chance of earning a decent return, that too much money isn’t lost in fees and that employees have access to all the information they need about the fund.”

Choosing the right fund for employees can be a complicated and confusing process, especially for human resource departments, which don’t necessarily have personnel to understand and interpret the numerous investment options provided by umbrella retirement funds. So, it’s vital to opt for a provider that is willing and able to educate employers, not only about the policies they offer, but also how to communicate them properly to their employees.

“In my experience, few companies take enough of an interest in their employees’ retirement journey,” says Pila. “If their employees are enrolled in a fund of the employer’s choice, they should also take an interest in helping employees understand their options. This in itself is a gift and a sign that you value your staff and their future prospects.”

Taking the time to conduct a full analysis of your prospective or existing corporate retirement fund, including an evaluation of all associated fees, is the place to begin, says Berger. Fees are one of the biggest predictors of retirement savings success, with an apparently small saving in fees compounding to make a significant difference over a savings lifetime.

“Finding a provider that helps employers to better communicate the options with their employees will instill greater confidence within your workforce. A workforce with a prosperous outlook and good retirement options is in everyone’s interest and is an appreciation of your employees that transcends far beyond Workers’ Day,” Berger concludes.

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