How Memphis Employers Can Improve 401(k) Participation & Reduce Missed Match Dollars

Helping an Employee Capture Thousands in Missed Retirement Benefits

While reviewing employee benefits participation, Fralick's Benefit Consulting identified an employee who had been with their employer for over five years but was not participating in the company’s 401(k) plan.

The employer offered a 4% company match when employees contributed 5% of their pay, but the employee was unaware of the long-term value of the benefit. We walked through a simple real-world example using the employee’s approximate $2,000 gross pay period income and demonstrated how contributing 5% would not only build retirement savings, but also unlock additional employer contributions through the company match.

Once the employee saw how much money they were leaving on the table, the impact was immediate. The employee’s reaction was clear — they immediately enrolled and began contributing to the 401(k) plan.

Outcome

This interaction helped:

• Increase employee retirement participation

• Improve employee understanding of employer-sponsored benefits

• Encourage long-term financial wellness

• Ensure the employee received available employer matching contributions moving forward

Key Takeaway

Many employees underutilize valuable workplace benefits simply because no one has clearly explained them. Education and communication can significantly improve participation and employee outcomes.