Some employers treat their 401(k) plan like the office copier. As long as nobody complains and nothing appears broken, they assume everything is fine. The plan gets attention when someone needs something, usually immediately.
Morgan Stanley’s 2026 Retirement Plan Survey offers a reason to rethink that approach. Surveyed plan sponsors now believe defined contribution plans are employees’ most valued workplace benefit, tied with healthcare. That is the sponsors’ assessment, but it should still get their attention.
If you believe employees value your retirement plan that highly, your oversight should reflect it. You wouldn’t casually ignore questions about whether employees have health insurance. Questions about retirement plan eligibility, payroll deductions, and missing contributions deserve prompt attention, too.
Having a plan is only the beginning. Employees need to understand how to participate, what the employer contributes, and where to get help. A benefits package loses some of its appeal when using it requires chasing three people who each blame someone else.
This also means looking beyond the owner’s account. A plan that produces a satisfying contribution for the business owner may still frustrate employees through confusing communications, poor service, or features that don’t fit their needs. Ask your providers what participants are experiencing.
Review the plan regularly. Understand its costs, evaluate provider service, and discuss whether its design still makes sense for your workforce. Give the employees handling administration enough training and support to do their jobs. Answer your TPA’s requests before the reminders become a collection.
Employers spend money trying to convince good employees to stay. They should pay attention to a benefit they already believe employees value so highly.
Your 401(k) deserves more than a mention in the employee handbook and an annual invoice. Treat it like an important part of compensation, because that is exactly what you’re offering the people working for you.