Too many employers talk about their 401(k) plan the way they talk about free coffee in the break room—as a perk, a nice extra, something to mention in the benefits brochure and forget about until renewal season. That mindset misses the point. A 401(k) isn’t a perk. It’s a promise you make to the people who show up every day to build your business.
When an employee defers part of a paycheck, they’re trusting you to choose competent providers, reasonable fees, and investments that give them a fighting chance at retirement. They’re not thinking about ERISA sections or fiduciary standards; they’re thinking about paying a mortgage at 70 and not becoming a burden to their kids. That’s heavy stuff, and it deserves more respect than an annual “set it and forget it” meeting.
I’ve seen plans treated like afterthoughts—old fund menus no one has reviewed in years, advisors who never show up, payroll files that don’t match eligibility rules. None of that comes from bad intentions. It comes from forgetting what the plan really represents. Every match dollar, every enrollment meeting, every investment change sends a message about how much you value your workforce.
The good news is that keeping the promise isn’t complicated. It means having a process: benchmarking fees, documenting decisions, educating employees in plain English, and surrounding yourself with partners who answer the phone. It means remembering that a retirement plan is part of your company’s culture, just like safety or customer service.
Employees will forgive a lot—tough years, tight budgets, even modest matches—if they believe you care about their future. But they won’t forgive indifference. Treat the 401(k) like the long-term commitment it is, and it becomes more than a benefit. It becomes proof that the company they’re helping to build hasn’t forgotten them on the other side of the finish line.
