Offering a 401(k) plan is a great benefit—but it only works if your employees participate. Low participation can impact both employees’ long-term financial wellness and your plan’s compliance with IRS nondiscrimination testing.

If you’re seeing lackluster engagement, here are actionable ways to encourage your team to take advantage of your 401(k) plan.

Make Enrollment Automatic

One of the most effective ways to increase participation is to implement automatic enrollment. Employees are automatically enrolled at a default contribution rate unless they actively opt out. It removes the barrier of having to decide, and most employees stay enrolled once they start.

Bonus: Pair it with automatic escalation to gradually increase savings over time.

Offer a Matching Contribution

A company match gives employees an immediate return on their investment. It’s also one of the top motivators for participation.

Example: If you match 100% of the first 4%, employees see that as “free money” they  don’t want to leave on the table.

Make sure the match is clearly communicated and easy to understand.

Educate—Often and in Plain English

Financial literacy is a big barrier. Many employees don’t understand how 401(k)s work, how to choose investments, or how much to save.

Offer regular education sessions that, 1) Explain the benefits of saving early, 2) Clarify investment options without jargon, 3) Walk through how to enroll or change contributions, 4) Consider using: Short videos, Interactive webinars, or 1-on-1 meetings with advisors.

Make It Easy with Simple Investment Options

Let’s face it—most people don’t want to spend a ton of time figuring out how to diversify their retirement investments. That’s why it’s important for plan sponsors to make it easy. Offering straightforward, well-diversified options helps employees feel confident without needing to be investment experts. It’s also key to understand the difference between risk-based and target date funds, so you can pick the one that makes the most sense for your group.

Tip: Hire an investment advisor that specializes in retirement plans.

Promote Roth 401(k) Options

Some employees—especially younger ones—prefer paying taxes now and withdrawing tax-free later. If your plan includes a Roth 401(k) feature, highlight how it fits their financial goals.

Pro tip: Use real-life examples tailored to different age groups and income levels.

Communicate Year-Round, Not Just at Enrollment

Too many employers rely on an open enrollment email and expect employees to act. Instead, build a communication strategy that includes, 1) Email reminders, 2) Intranet banners or HR portal messages, 3) Payroll stuffers or direct mail, 4) Manager talking points during onboarding, 5) Make the message consistent and clear: “Start now. Save for later. We’re here to help.”

Lead by Example

When leadership participates—and talks about it—employees follow. Encourage managers and executives to share why they participate and how they set their own savings goals.

Remove Barriers to Action

Simplify the sign-up process. Use 1) Easy-to-navigate online portals, 2) QR codes that link directly to enrollment, 3) Mobile apps where employees can update their contributions on the go

Celebrate Milestones

Create a culture of savings by recognizing financial wellness wins:

• “Savings Champion” shoutouts
• Company-wide savings rate updates
• Internal contests or incentives tied to enrollment or contribution increases

Employees want to save for retirement—they just need a little help getting started. By removing barriers, offering education, and building a culture that supports financial wellness, you can turn your 401(k) from a benefit that’s available into one that’s truly used.

Corrigan Krause Can Help

Offering an benefit plan to your employees is a a great way to support your team. If you’d like the support of employee benefit plan audit experts,  contact the Employee Benefit Audit Team for information on becoming at client here.