We’ve all heard it: “Don’t leave free money on the table.” It’s the classic pitch to get employees to participate in their 401(k) plans. Employers proudly offer a match, expecting that phrase alone will light a financial fire under their workforce. And yet, participation rates still stall. Apparently, even free money isn’t exciting enough anymore.
Maybe it’s not that employees don’t want the match. Maybe they just don’t believe it’s really free. After all, this is a world where “free” Wi-Fi comes with a privacy clause longer than War and Peace. People have been burned by too many “free trials” that cost them $19.99 a month for eternity. So when HR says, “We’ll match your contribution,” employees assume there’s a catch—like hidden fees, complicated vesting schedules, or that one coworker in accounting who insists the company is tracking them through their 401(k) app.
The truth is, the match only works if the plan design and communication work with it. If employees don’t understand the math—or worse, if they think the plan is a bureaucratic maze—they’ll tune out faster than a bad PowerPoint presentation. A 3% automatic deferral, auto-escalation, and plain-English education materials do more to boost participation than another flyer shouting “FREE MONEY!”
Here’s the irony: plan sponsors spend thousands on recordkeeping, audits, and investments, but many still rely on outdated enrollment meetings and PDFs from 2011. You can’t sell the value of the match with a presentation that looks like it came from dial-up Internet.
So, what’s the takeaway? If your employees aren’t contributing enough to get the full match, don’t just blame them—look in the mirror. Maybe the problem isn’t that the match isn’t generous enough. Maybe it’s that your messaging is as dry as an ERISA disclosure.
Free money may not be exciting, but clarity and engagement still are. Give your employees a story they can trust, and they’ll take the match every time.
