Kelly Chambers

Employee engagement: 3 ways to boost workforce engagement with benefits Dec 16, 2025 9:12:57 AM Employee engagement can be your biggest growth driver. Discover three financial benefits that help motivate your team and strengthen your business. Key takeaways: According to Gallup’s latest report, only 31% of U.S. employees are engaged, the lowest level in a decade. Betterment’s research uncovered that anxiety about finances impacts workplace performance for 46% of employees. Savvy employers can move past offering “perks” as ways to engage their team, and instead offer real financial benefits that employees want. Three financial benefits to engage employees beyond a 401(k) include educational content, digital personalized advice, and 1:1 financial coaching. Betterment makes it easy for small and mid-market businesses to provide a scalable retirement plan along with education and advice tailored to your employees. For business leaders, employee engagement remains a popular topic. And the search data confirms it. There are over 1 million Google searches every month for the phrase “employee engagement.” Leaders are looking for ways to keep their teams motivated, productive, and connected—a difficult task in today’s evolving workplace. Why employee engagement matters more than ever According to Gallup’s latest State of the Global Workplace report, only 31% of U.S. employees are engaged, the lowest level in a decade. Additionally, 52% of employees were “not engaged” and 17% were “actively disengaged.” Low employee engagement is a problem. It’s not a feel-good HR metric. It’s a key driver of business performance. The data from a Gallup meta-analysis that looked at over 3 million employees from 50 industries shows the impact of engaged employees: Highly engaged teams experience 78% less absenteeism and 14% higher productivity Highly engaged teams achieve 10% higher customer loyalty and 18% higher sales productivity. When taken together, the behaviors of highly engaged employees result in a 23% increase in profitability. What can a modern business leader do to boost employee engagement? Many leaders find themselves investing in perks and programs that simply don’t often move the needle. Why? Because employees want support that improves their daily lives—not just their workday. In today’s economic landscape, that means real financial support. Research shows that financial benefits can help drive workforce engagement Money remains a top source of stress for U.S. employees—and, according to our latest research, it regularly impacts engagement levels in the workplace. In Betterment’s 2025 Retirement Readiness Annual Report, we uncovered: Anxiety about finances impacts workplace performance for 46% of employees. Younger employees (Gen Z at 65%, Millennials at 64%) are most likely to switch jobs based on financial benefits. Knowing that employees’ financial worries can negatively impact a business’s bottom line, savvy leaders can take steps to offer financial benefits that increase engagement at work. Three financial benefits to help increase employee engagement Three financial benefits to engage employees beyond a 401(k) include educational content, digital personalized advice, and 1:1 financial coaching. These financial benefits may help increase overall engagement as employees feel taken care of and suffer less from financial stress. 1) Deliver educational financial content that employees actually use Educational financial content helps employees level up their money skills and make confident decisions about retirement, savings, and budgeting. This, in turn, can help reduce financial stress that creeps into the workplace. Betterment at Work provides a full suite of educational tools, including: Short-form videos that explain benefits in plain English Live and on-demand webinars tailored to your workforce Custom email campaigns that guide employees through key financial moments Articles and resources that answer the financial questions employees ask most Our financial planning hub offers employees videos and articles on: Get started with a 401(k) Building a financial foundation Leveling up your investing strategy Roadmap to a secure retirement When employees understand their benefits, they’re far more likely to engage with them—leading to better participation, satisfaction, and retention. “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 2) Engage employees with personalized digital retirement advice Today’s employees expect personalized support in every part of their lives—including their retirement planning. Digital retirement advice meets employees where they are, guiding them through the tools they already use. Through Betterment at Work, employees can access in-app retirement insights that help them: Determine if they’re on track for retirement Understand how contributions impact their long-term savings Model future scenarios and make informed adjustments Take clear, personalized next steps toward their financial goals Additionally, because younger employees are more likely to access their accounts on their phones, the Betterment app features in-app content, making it easy to consume on the go. This creates an ongoing engagement loop: employees log in, interact with their retirement accounts, and feel more connected to the long-term value of their benefits. 3) Offer 1:1 financial coaching Access to a financial coach can be a valuable experience for employees. We saw this through our own proprietary research: 54% of investors with a positive outlook work with a financial advisor, citing improved financial plans, advancement of long-term savings goals, and reduced financial stress as the top benefits of a human-guided approach. 32% of employees ranked “access to a live financial advisor” as one of the top five financial benefits that would entice them to leave their current job. Betterment at Work’s 1:1 financial coaching connects employees with real financial experts who can guide them through budgeting, debt management, savings strategies, and long-term planning. If employers opt to offer the benefit, employees can book sessions anytime, ask questions specific to their unique situations, and receive actionable steps to reach their goals—whether that’s buying a home, paying off student loans, or planning for retirement. Coaching doesn’t just address financial stress. It builds trust, provides financial education, increases the utilization of benefits, and strengthens the bond between employees and their employer. Offer the benefits your employees want and need Through our research, we know that employees are asking for financial benefits that help them reach their goals outside of work. As an employer, you have the opportunity to deliver on that, helping your employees live better lives and your business thrive. Ready to offer your workforce an award-winning retirement plan? Check out Betterment at Work today. Already offer a 401(k) with Betterment at Work? Log in to your plan sponsor dashboard to find our comprehensive Employee Engagement Playbook.

How much does a 401(k) cost an employer? (2025 guide) Dec 15, 2025 10:15:01 AM A 401(k) can be affordable, especially when you understand where fees come from and how to leverage available tax credits. Key takeaways: A 401(k) can be affordable for small and mid-sized businesses—especially when you understand extra costs and avoid hidden fees. Employers typically budget for setup, administration, and investment-related fees, plus optional matching contributions. Betterment at Work provides transparent pricing and built-in compliance support, to help admin workload for employers. Small businesses may qualify for valuable SECURE Act tax credits that may significantly reduce or even eliminate plan costs in the first three years Offering a 401(k) can help provide meaningful tax advantages for the business. If you’re researching what a 401(k) costs small businesses, you’re not alone. Thousands of employers search for information on this topic every month because understanding plan costs can be confusing The truth is, a 401(k) can be affordable, especially when you understand where fees come from and how to leverage available tax credits. Betterment at Work helps growing companies launch and manage scalable 401(k) plans built for their budget. Here’s what you need to know about 401(k) plan costs. Why understanding 401(k) costs matters According to the 2025 Betterment Retirement Readiness Report, a 401(k) is one of the most in-demand employee benefits. Understanding 401(k) plan costs can help you: Attract and retain top talent Qualify for tax credits and deductions for your business Create an annual budget and avoid surprise fees as your plan grows Understand what it costs to stay compliant with IRS and DOL regulations With Betterment, employers get transparent pricing with built-in compliance. No more stressing over deadlines or handling reporting by yourself. Plus, no need to pay for extra 401(k) plan recordkeepers. We take care of your annual testing, daily monitoring, and complicated paperwork to confirm your 401(k) plan is compliant and up-to-date. See how we manage 401(k) plan compliance for you. What does a 401(k) plan cost? Generally, 401(k) costs usually fall into four categories: Setup and conversion fees: This covers plan design and onboarding, along with costs of converting a plan from another provider. [Do we know roughly how much converting plans costs?] Administration fees: Recordkeeping, reporting, employee support, compliance, payroll syncing make up the infrastructure that keeps your plan running smoothly. Investment fees: Costs of managing investments and fund-level expense ratios vary by plan complexity and are usually paid by employees, but employers influence these costs through their choice of plan providers. Employer contributions (optional): Many companies match employee contributions to boost participation and strengthen employee engagement. Employer contributions are tax-deductible, which can offset the overall plan cost. Small business 401(k) cost estimates 401(k) plan costs can range depending on your business size and the plan provider you choose. Cost type Common cost range Setup and conversion fees One-time fee of $500–$1,000+ Administration fees $500-$10,000+ per year, depending on business size Investment fees Average of 0.27% to 1.25% depending on plan size Employer contributions (optional) Average of 4.8% in 2025 Betterment pricing is designed to scale with your business — not penalize you for growing. See Betterment at Work pricing. How tax credits can pay for some (or all) of your 401(k) plan costs One of the best-kept secrets in retirement benefits is tax credits. For example, a hypothetical company with 50 employees, where five of them earn $160,000 or more, may be able to have its plan expenses paid for by tax credits during the first three years of the plan. Startup credit Your plan may qualify for the start-up credit if it allows non-highly compensated employees (NHCEs) to participate and you have 100 or fewer employees. The startup credit is calculated based on the number of NHCEs in the plan and covers the costs of setting up and administering the plan, and educating employees. The possible annual credit is the greater of (1) $500 or (2) $250 per eligible NHCE, up to $5,000 per year. The maximum credit for a business is: With 51 to 100 employees: 50% of eligible startup costs paid or incurred in a tax year. With 50 or fewer employees: 100% of eligible startup costs paid or incurred in a tax year. If the plan’s administrative costs in a year are lower than the maximum allowable tax credit that year, the remaining credit may be rolled forward to a future year. Auto-enrollment credit You may qualify for the auto-enrollment credit if: You have added an Eligible Automatic Enrollment Arrangement (EACA) or Qualified Automatic Enrollment Arrangement (QACA) provision to your new or existing plan. You have 100 or fewer employees. You may qualify for the auto-enrollment credit even if your plan only allows participation by highly compensated employees.