Comprehensive human resources software solutions will not only benefit HR managers, but it will also help employees at all levels remain up-to-date on their payroll and benefits options. Planning for retirement through 401(k) contributions is not always easy, and it is important for businesses to offer team members as much information as possible about what their savings’ options are.
Especially with recent research showing that more employees want to start looking into saving for their children’s college years, companies of all sizes should have accurate data available.
According to the latest Trends in Employee Financial Issues report by Financial Finesse, 27 percent of employees who have minor children said that they are contributing to a 529 plan, or similar option for saving for higher education. This is an increase from 2012, where just 16 percent of respondents said that they were saving.
Additionally, the report showed that just 22 percent of those surveyed knew how much money they needed to save for college costs and were on track to meet those goals.
Liz Davidson, CEO and founder of Financial Finesse, told SHRM Online that nearly eight out of 10 parents with minor children are in danger of not saving enough money to eventually meet the potential costs of higher education.
“At a time when student-loan debt is at an all-time high, tuition increases significantly outpace inflation, and college graduates face a still-uncertain job market with flat wages and more modest company benefits, parents are not nearly as equipped as they should be to manage these challenges,” she added.
While retirement and other savings options will differ from one company to the next, HR software solutions can help organizations keep all staff members in the loop about what choices they have and what can be done to meet financial goals.