PEO Employee Engagement: Five Keys to Retention and Productivity

Employee engagement is more than just a buzzword—it’s the backbone of a thriving workplace. Companies with highly engaged employees tend to see greater productivity, improved morale and lower turnover rates.

For professional employer organizations (PEOs), employee engagement is about more than creating happy workplaces—it’s about driving value, both for your own employees (in cases where you’re the employer of record) and your adopters’ employees. One often overlooked but powerful driver of engagement is the availability of comprehensive retirement plans. By offering a high-quality retirement plan, you clearly demonstrate that you support your employees’ long-term financial health, value their contributions and are invested in their future.

How can you inspire and deepen that employee engagement? These five keys will get you started.

1. Understand what matters to employees

Employees want to feel valued—both in their day-to-day work and through the benefits they receive from their employers. Conducting regular surveys to understand employee priorities

can offer invaluable insights into what motivates them. While compensation is always a factor, modern employees increasingly value benefits like flexible work arrangements, career development opportunities and robust retirement plans.

Understanding the specific needs of different employee demographics is crucial. Using the example of retirement programs, younger employees may need education about the importance of saving early for retirement. Older employees might focus more on maximizing their contributions or understanding catch-up contributions. Tailoring communications and benefits to each specific employee audience is a key engagement tool.

2. Offer competitive and relevant benefits

A strong benefits package signals to employees that their well-being is a priority. The 2024 Workplace Wellness Survey from the Employee Benefit Research Institute shows that 62% of employees surveyed in 2024 value strong retirement plans as a key component of their financial security–up from 56% in 2023. By offering competitive matching contributions, flexible investment options, and customized tools that make saving for retirement easier, you can help your adopters attract and retain top talent.

3. Communicate clearly and consistently

Employees can’t value what they don’t understand. Clear, ongoing communication about available benefits and their value is critical to employee engagement. Create multiple channels —email, webinars, in-person meetings and even social media—to share information about benefits.

For example, hosting a retirement-focused information session during enrollment periods can boost awareness and participation. The key is to simplify the message. Use plain language and relatable examples to help employees see how these benefits can improve their lives. At Ameritas, we offer a wide variety of materials to help you and your adopters communicate effectively with employees, allowing you to share information quickly, easily and in full compliance with current regulations.

4. Celebrate milestones and successes

Recognizing employee achievements is a simple yet powerful way to enhance engagement. Whether it’s celebrating an employee’s years of service, highlighting team successes, or acknowledging financial successes like taking advantage of a 401(k) match program, these acknowledgments foster a culture of appreciation. This culture will help create a happy ecosystem, where satisfied employees lead to satisfied adopters—and ultimately, the plan sponsor’s satisfaction.

5. Emphasize the value of retirement planning

Retirement plans are a cornerstone of a well-rounded benefits package, but they’re often underutilized. This is where you can step in to help ensure employees are making the best choices possible for their future.

Why are retirement plans such an excellent tool to drive engagement?

• Show employees that their future matters to you. When you or your adopters emphasize the importance of retirement, you’re communicating that you care about your employees’ long-term well-being. Especially in periods of uncertainty, this can help your employees feel more secure about their financial future, which can contribute to their overall job satisfaction.
• Boost financial literacy. Many employees don’t contribute to their retirement plans simply because they don’t understand how the plans work or how saving now impacts their future. By offering educational resources, such as webinars, one-on-one consultations and engaging learning tools, you can help employees feel more confident about their finances overall.
• Attract and retain top talent. Competitive retirement plans are a key factor for many job seekers. By attracting high-caliber candidates and retaining experienced employees through this key benefit, you and your adopters can reduce costly turnover. · Help reduce financial stress. According to a 2023 PwC survey, 57% of employees cited finances as a top source of stress. Providing a comprehensive retirement plan in coordination with other high-value benefits can potentially help ease this burden, allowing your employees to focus on their work rather than financial worries.
• Foster a culture of trust and care. Employees who feel supported by their employers are more likely to trust their leadership and remain loyal to the company. By promoting retirement plans, you can help adopters build this trust. Features like transparent communication about plan fees, access to unbiased financial professionals and regular updates on account performance can help employees feel confident in their retirement plan.

Ready to get started?

As the workforce continues to evolve, so too must the strategies for keeping employees engaged, supported and invested in their future. For PEOs, leading the way with retirement plan engagement isn’t just good business—it’s a win for everyone involved.

To learn more how Ameritas can help you, your adopters, and your adopters’ employees, contact us at: peo@ameritas.com.