Six Ways to Create Employer Buy-in – It Matters!

Employer buy-in is essential to the success of state-sponsored auto-IRA programs like CalSavers, OregonSaves, and Illinois Secure Choice. The goal of these programs is to help workers without access to traditional workplace retirement plans save with every paycheck. The sooner workers can start saving, the better, thanks to the power of compound earnings, so it’s important that employers know about the program, register, and start making payroll deductions for employees in a timely manner. 

Getting the attention of busy employers, however, isn’t easy, especially across different geographies and industries. So how do you find them and help them get onboard? Here are six proven tactics states can pursue:

Direct mail and email: States usually maintain multiple databases of employer information, through business registration, tax departments, and programs like unemployment insurance. Data sharing agreements between state agencies can help identify eligible employers, especially if cross-referenced with other databases like Form 5500 filings. These databases are not a silver bullet, however, since many times the information may not be up to date or be missing key contact information. I spent a good amount of time for OregonSaves searching for alternative phone numbers, mailing addresses, and emails for businesses when the info in the databases was wrong. It can be especially hard to connect with the right corporate office for large employers that operate in multiple states or countries. 

Existing Government Communications Channels: State agencies often communicate with employers through notices, conferences, and newsletters that state auto-IRA programs can tap into. For example, in Oregon, we included information about OregonSaves on every business registry renewal notice. Employers tend to be more likely to read the mail coming from sources that regularly communicate with them about important compliance or tax information.

Chambers and Business Associations: Many businesses participate in various local, state, or national chambers of commerce or business associations. These entities can help connect programs directly with employers, especially leaders in the local business community, who can turn out to be key advocates for auto-IRA programs. In Oregon, these groups were critical in helping the state find employers for its pilot program, which helped the state not only design better systems but helped the program gain public recognition and momentum.

Payroll Providers: Businesses often outsource payroll and benefits administration, either to the large providers or to their local, independent payroll firm. These firms are often the ones who will complete the processes for employers, so it’s important for states to work with payroll providers at every step of the process to gain their buy-in, as trusted business partners.

Advertising: Advertising probably isn’t that effective at getting employers to register or take next steps, but it can help build general awareness. Many digital advertising platforms, like ads for Google and Facebook, make it possible to target specific audiences, like employers or key industries.

Personal Outreach: At the start of OregonSaves, we worked with volunteers to go door-to-door in downtown business districts to talk with local store owners. We also sent personalized emails to business owners and made cold calls. This type of outreach can be helpful ahead of deadlines for employers.

It often takes many contacts with employers before they take action, and in Oregon, we found that this was true for almost every step of the process, from creating general awareness to registering for the program, to making payroll deductions. Learning a new program and getting used to integrating into business processes takes time. Some may have no trouble starting up, but others will need various forms of assistance along the way, including in person. 

Auto-IRA program staff can’t create personal relationships with every employer, but they can focus on building great customer service, to ensure employers get the info and help they need in the ways that they need it.

More to come! / Joel

Columnist and Senior Associate Joel Metlen is based in Oregon. Joel is a pioneer of the state facilitated retirement savings space, woven into a career of public service and innovation. At OregonSaves, Joel’s responsibilities ranged from marketing and employer engagement to operations and data analysis. You’ll see his insights from that experience, and more, here.

This piece was featured in the March 10, 2022, edition of Retirement Security Matters. For more fresh thinking on retirement savings innovation, check out the newsletter here.