How a 401(k) can reduce financial stress and boost productivity

How a 401(k) can reduce financial stress and boost productivity Dec 12, 2023 3:23:10 PM Financial stress is hurting productivity. Here’s how you can help change that at your business starting with your 401(k). Financial stress is affecting your employees' performance — and your bottom line Not only does financial stress make an individual’s personal life more difficult, it can hurt their employer's bottom line. As business leaders, we are in a position to make a positive impact on our employees’ lives and our business performance. The demand for financial benefits isn't new. Since 2021, approximately 90% of employees surveyed in Betterment's Retirement Readiness report have consistently said it's important for their employers to provide financial benefits. And urgency is growing. In the 2025 installment 76% of workers said benefits matter more to them now than a year ago—up from 68% who felt the same way in 2022. So, what can employers do about this? Why financial benefits are now a retention issue, not just a perk Offering a 401(k), it may be your core financial benefit but it isn’t the sole remedy. More than half of all respondents (57%) said better financial benefits beyond salary—such as 401(k) matching, student loan payment support, and financial advising—would entice them to leave their current job. Financial benefits are especially enticing to Gen Z and Millennials, but they are also clearly hungry for more information on what their employers can do for them. To meet this need and remain competitive, HR leaders need to prioritize benefits education for their youngest employees, ensuring they know what options are available to them and how to make the most of them.” – Edward Gottfried, VP of Product Management, Betterment at Work It’s important to look at how you can build financial wellness features around your 401(k) plan to support your employees’ financial lives—and your business’s future. How to build a financial wellness program around your 401(k) Knowing the needs of a modern workforce, at Betterment at Work, we’ve built a suite of financial benefits designed to support your employees, starting with your 401(k) plan. We believe that evolving your benefits with the needs of your workforce can help provide a strategic advantage in attracting and retaining talent. What to look for in a modern 401(k) platform Your 401(k) plan should be easy to manage for you and easy to use for your employees. Our technology streamlines this, whether via integrations with common payroll providers or through our intuitive platform that helps employees invest in expert-built portfolios. Benefits that integrate with your 401(k) to reduce employee financial stress We’ve added benefits that integrate with our 401(k) platform to make managing benefits easier and reduce the financial stress that your employees carry. 529 education savings: Help employees tackle rising college costs Including 529s in your benefits package helps employees tackle rising education costs and shows your commitment to their financial health. It’s easy to manage, with 529s integrating into your existing benefits platform for a seamless experience. 1:1 financial coaching Help employees take better control of their finances with tailored 1:1 guidance and advice. Adding Financial Coaching to your Betterment 401(k) can help build a more confident, productive team. Plus, as a fiduciary, every financial advisor at Betterment is legally responsible to act in your employees' best interest.