How to Choose the Right Retirement Plan for Your Workforce: A Strategic Guide for HR Leaders

Choosing the right retirement plan isn’t just an administrative task—it’s a strategic decision that shapes your company’s ability to attract, retain, and support employees. As an HR leader or benefits manager, the plan you select will directly impact your workforce’s financial security while aligning with your company’s long-term goals. 

A well-structured retirement plan enhances employee satisfaction, improves retention, and reinforces your company’s commitment to financial wellness. But with so many options available—from 401(k)s to profit-sharing plans and pensions—how do you determine the best fit for your workforce?  

Whether you’re designing a new plan or refining an existing one, these insights will help you build a retirement strategy that benefits both your employees and your organization. 

Why a Thoughtful Retirement Plan Matters

A well-designed retirement plan is more than a perk—it’s a powerful tool for talent retention and engagement. For employees, it provides financial security, reduces stress, and fosters long-term loyalty. For employers, it enhances your competitive edge, strengthens your reputation, and aligns with business growth strategies.

In today’s job market, retirement benefits significantly influence retention rates. According to MetLife’s Employee Benefits Trends Report, 73% of employees say that retirement benefits impact their decision to stay with an employer.

However, not all retirement plans are equally effective, and the right choice depends on your workforce demographics, company values, and financial sustainability.

By taking a strategic approach to plan selection, HR leaders can create retirement benefits that truly support employees—while also advancing company objectives.

Aligning Retirement Goals with Employee Demographics  

One size rarely fits all when it comes to retirement benefits. Understanding your workforce’s needs is critical for designing a plan that resonates.  

• Younger Employees (Millennials and Gen Z): These workers often prioritize flexibility, portability, and employer matching contributions. Many are still managing student loans and leaning on gig economy work, so they’ll be drawn to plans like 401(k)s that offer matching and low upfront barriers.  
• Mid-Career Employees (Gen X): Workers in this bracket may be more focused on catching up. Consider offering robust employer contributions and tools for tracking progress toward retirement benchmarks.  
• Retirement-Eligible Employees (Boomers): Employees nearing retirement might appreciate education on distribution strategies and financial planning seminars. Traditional pension plans or options for steady income streams can be appealing here.  

Conducting surveys and collecting data about your workforce can help you determine which group’s needs to prioritize—or how to balance support across your employee base.  

Balancing Company Goals and Budgets  

While aligning with employee demographics is essential, your retirement plan also needs to fit the financial capabilities and strategic priorities of your organization.  

• Budgeting for Employer Contributions: Don’t just look at the cost of contributions today—assess where your company could be financially in five or ten years. You’ll need to ensure the plan is sustainable long-term.  
• Business Priorities: What role does employee retention play in your growth strategy? How does the retirement plan contribute to making your company a reputable, attractive employer?  

Engaging Employees with Retirement Benefits  

Even the most well-designed retirement plan only works if employees participate. Many workers fail to take action simply because they don’t understand the benefits or process.  

• Automate Enrollment: Automatic enrollment has been shown to significantly increase participation rates.  
• Education Sessions: Host workshops or webinars to inform employees about their options.  
• Provide Financial Tools: Offer access to resources, such as retirement calculators or one-on-one consultations with financial advisors.  

Measuring Success and Iterating  

Once your retirement plan is in place, your job doesn’t end there. Use performance metrics like participation rates, contribution levels, and employee satisfaction scores to track the success of your plan.  

Regularly reassess your offerings as company goals shift or workforce demographics change. Retirement solutions are not static; they should evolve alongside the unique needs of your business and employees.  

The Future of Your Workforce Starts Here  

Designing the right retirement plan isn’t just a project—it’s an opportunity to define your organization’s legacy. By aligning your workforce’s needs with your business goals and investing in the right plan, you’ll not only secure your employees’ futures, but also elevate your company’s profile as an employer of choice.  

At Brighton Jones, our team of experts specializes in helping businesses like yours craft retirement solutions that truly resonate. From plan design to implementation and ongoing support, we’ve got you covered.  

Take the next step for your employees’ futures—contact OpenPlan today.

This content is for informational and educational purposes only and should not be construed as individualized advice or a recommendation for any specific product, strategy, or course of action. Brighton Jones, its affiliates, and employees do not provide personalized investment, financial, tax, or legal advice through this communication. This material is not intended to, and does not, create a fiduciary relationship under ERISA or any other applicable law. For individualized advice tailored to your specific circumstances, please consult with your adviser.