Retirement Benefits: A Talent Magnet for the Construction Industry
By Christopher Magno, SVP/General Manager, ADP Retirement Services
The construction industry is vital to the U.S. economy and infrastructure. But considering the severe worker shortage, tight talent market and numerous HR challenges, many firms are seeking new ways to meet their unique needs.
Thanks to federal programs, billions of dollars will be allocated toward American infrastructure, driving significant growth in the construction industry. However, this federal spending — paired with increased demand for building and construction services — will compound an already severe worker shortage.
Strong workplace benefits, including a retirement plan, are a talent magnet that supports personal and financial well-being. But retirement plans are not without their own challenges.
Challenge: Plan participation rates are low.
The average retirement plan participation rate in the construction industry is just 73%. That means employees are missing out on this valuable workplace benefit, including tax-advantaged savings and matching contributions. Simply offering a plan is no longer enough; employers must be proactive in communicating the benefits of participation clearly and often.
Challenge: Many plans don't offer financial education resources to employees.
Many workers struggle with paying daily expenses, debt, saving for emergencies and other financial challenges. The financial stress can be a distraction in the workplace, reducing productivity. Providing employee education about your retirement plan is part of your fiduciary obligation, yet 50% of construction firms offer no financial wellness education on budgeting, debt and saving for long-term goals.
Challenge: Too many plans may be taking unnecessary fiduciary risk.
Plan sponsors have a fiduciary responsibility to act in their employee's best interests, including paying reasonable fees for investments. Forty-seven percent of employees are unsure if their plan advisor is a fiduciary, which is problematic considering it's the responsibility of the plan fiduciary to select and monitor plan investments.
One simplified solution
An ADP retirement plan can help make your workforce stronger by attracting and retaining motivated, productive employees with benefits they value while making plans easy to manage:
- Access data and insights to keep everyone in control of saving for retirement
- Leverage a data-driven approach to employee education that solves unique challenges, uncomplicates retirement planning and empowers employees to make better decisions
- Protect your employee data with industry-recognized security, compliance management and risk mitigation
Learn more
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Read the full report to learn how ADP can address your unique business challenges: Retirement plan solutions for the building, construction and contracting industry.
For more information, reach out to an ADP retirement specialist at 1-800-432-401K or visit adp.com/401k.
ADP, Inc., and its affiliates do not offer investment, tax, or legal advice to individuals. Nothing contained in this article is intended to be, nor should be construed as, particularized advice or a recommendation or suggestion that you take or not take a particular action. Questions about how laws, regulations, guidance, your plan's provisions, or services available to participants may apply to you should be directed to your plan administrator or legal, tax or financial advisor. ADPRS-20231110-5160