Social Media Can Improve 401k Participation Rates

Last week one of our team members attended a Webinar about the power of Web 2.0 in talent management. One of the highlights was how Best Buy increased their 401k participation by 30%.

30%? How the heck did they do that?

With a contest. A video contest. They asked employees throughout the retail chain to submit motivating videos that would help increase overall 401k participation. They did just that and the winner is below.

Ah, creative employee engagement does motivate and help with retention (well the hopefully solid 401k is helping retention in this economic mudslide we're in).

These types of creative "social media" initiatives, coupled with employer financial education programs and auto-enrollment and online plan management tools, can help retain an already incredibly unsteady workforce.

According to a recent press release by the International Foundation of Employee Benefit Plans (also an HRmarketer member), 43% of U.S. respondents offer financial education/literacy programs for their workers. And this number will only increase next year as the economy is predicted to become bleaker before it improves. And Julie Stich, Senior Information/Research Specialist with the IFEBP stated that "with the economy affecting retirement plans, employees are taking a greater interest in their retirement future."

Of course we are. No more weapons of financial mass destruction.

Now, check out the winning video...


Post by Kevin Grossman

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