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SHRM: Retirement plan auto-enrollment levels remain flat since 2012

Automatically enrolling employees in 401(k) plans can be a key to expanding access to retirement savings, a SHRM study finds, though companies aren't using it as much as they could.

By Marlene Y. Satter | Updated on June 24, 2016
Automatically enrolling employees in 401(k) plans can be a key to expanding access to retirement savings, a SHRM study finds, though companies aren't using it as much as they could.(Photo: Getty)

Despite the retirement savings crisis and company efforts to improve employee retirement preparedness for the day when they leave the workplace, one tactic to boost results isn’t gaining much ground: auto-enrollment.

That’s according to the 2016 Employee Benefits report from the Society for Human Resource Management, which found that, although automatically enrolling employees can be key to expanding access — something that must be done in order to improve the nation’s retirement situation — only 38 percent of companies automatically enrolled new employees into defined contribution plans unless those employees opted out, and just 21 percent of companies automatically enrolled current employees unless those employees opted out.

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