Why? The beginning of a new year is typically when even the most reluctant staffers are receptive to change.

To help boost participation, pass along these facts about direct deposit to skeptical workers:

• They get their money faster. Employees enrolled in direct deposit get their checks in their accounts faster — usually around 12 hours faster. That’s a very convincing point for employees who are living paycheck to paycheck.
• They get to save without thinking about it. Many employees want to put money aside, but simply don’t have the discipline to do it themselves. With direct deposit, employees can elect to automatically put a set amount of money into a savings account each pay period.

To convince its employees direct deposit was a smart idea, a southeastern manufacturing company presented it’s workers with real-life examples of how the system would benefit them personally.

Example: During a hurricane in the area, some of its employees weren’t able to get their paper checks on time — and direct deposit would prevent that problem from happening again.

What are some ways you convinced employees to switch to direct deposit? Let us know in the Comments Box below.

Here are some common species:

Bottom-liners

These no-nonsense employees don’t like fluff. So the most effective way to present info to — or answer questions from — this group is to be direct.

Concrete examples with tangible facts and figures work well with these workers.

Attackers

These employees tend to be more negative — they have no problem criticizing company initiatives and programs in public.

If an “attacker” comes to you with a gripe about changes you’re making to one of their benefits, show you care about the person’s concerns by listening. Then, if necessary, explain how the changes are meant to help them — or the company — long term.

Avoiders

These are the employees who want to do only the bare minimum.

They present a challenge to benefits pros who are trying to boost participation in company-wide initiatives — wellness programs, health risk assessments, 401(k), etc.

The key to success with this group is making things as simple as possible.

Example: Adding automatic enrollment to your 401(k) may be all it takes to boost participation among these workers.

Not according to recent trends. 401(k) participation over the past year has remained strong despite the fact that 71% of American workers are now living paycheck to paycheck, a new survey by the American Payroll Association has found.

In fact, 82% of workers with access to a 401(k) say they’re still making contributions.

Of those still contributing, 19% have raised their contribution level and 19% have lowered it since Sept., 2008.

Employees happy with their plans

More good news: The majority of employees (54%) are satisfied with their company’s retirement plan, and 61% say they view their employer’s plan as the primary vehicle to save for retirement, according to recent research from Watson Wyatt.

Another 29% admitted they wouldn’t save for retirement without it.

Some other findings from the Watson Wyatt survey:

• More employees (62%) with a defined-benefit (DB) plan are satisfied with their retirement plan than those with only a defined-contribution (DC) plan (51%)
• 46% of employees say they’d be willing to pay a higher amount out of their paycheck to ensure a guaranteed retirement benefit, and
• 52% of employees with a DB plan say their company’s retirement plan is a key reason they continue to work for their employer — only 33% of those with a DC plan say the same.

The expected participation rate may vary not only by your industry but also by your location. On a national level, 52% of employees participate.

 According to EBRI here are the five top and bottom states for retirement plan (defined benefit or defined contribution) participation.

Top 5:

1. Wisconsin (67.7% participation average)
2. Iowa (66.9%)
3. North Dakota (65.8%)
4. Connecticut (65.0%)
5. Minnesota (64.1%)

Bottom 5:

1. Florida (41.8% average participation)
2. Arizona (44.3%)
3. Louisiana (46.7%)
4. Texas (48.8%)
5. Nevada (50.3%)