Retirement preparedness is a challenge across the construction industry, where mobile workforces and seasonal employment leave many workers underprepared. While contractors focus on project deadlines and safety, fewer address long-term financial health. M.A. Mortenson, a Minneapolis-based construction company with 2,000+ employees, raised 401(k) participation among nonunion construction workers from 20 percent to 71 percent by transforming benefits communication into an engaging initiative. This article examines the strategies and implications of helping construction workers build futures through employer plans. For additional insight into related workforce development efforts, see Epa Green Infrastructure Program Helping Five State Capitals.
The Retirement Crisis in Construction
The construction industry faces unique barriers to retirement savings that distinguish it from other sectors. Understanding these challenges is essential for any contractor considering the implementation or improvement of a retirement benefit program.
Low Participation Rates Among Field Workers
Construction companies have long struggled to engage field workers in retirement planning. Workers move between job sites, making it difficult for HR to reach them. The seasonal nature of construction also creates income variability that discourages consistent contributions.
Nationally, the median 401(k) balance is about $54,000, far below what is adequate for retirement. Among construction workers, many have no retirement savings through their employer.
The Information Gap
A major part of the problem is communication. Typical onboarding presents new hires with a stack of benefits documents and leaves them to navigate the material on their own. As Connie Mullis of the Profit Sharing/401(k) Council of America (PSCA) notes, this places an unreasonable burden on employees with limited financial planning experience.
The result is that many workers never fully understand the value of their retirement benefits, the power of employer matching contributions, or the long-term impact of compound growth. Without this foundational knowledge, participation remains low and contribution rates stay minimal.
Why Employer Action Matters
Construction employers are uniquely positioned to address this gap. No other institution has the same regular access to workers or the same level of trust from employees regarding workplace benefits. When a contractor takes an active role in financial education, the impact extends beyond the jobsite. Construction Safety Management Essential Practices for Protecting Workers similarly demonstrates how employer-led initiatives in one domain can create positive ripple effects across the entire workforce.
The Mortenson Model: Turning Education into Engagement
M.A. Mortenson took a fundamentally different approach to retirement education. Rather than treating 401(k) communication as a once-a-year obligation, the company transformed it into a sustained, engaging campaign that resonated with its workforce.
From One Day to One Month
The PSCA established 401(k) Day as an annual reminder for workers to evaluate and optimize their retirement savings. Most participating companies download materials from the PSCA website and distribute them with minimal fanfare. Mortenson decided to go much further, expanding the concept into a month-long event.
This extended timeframe allowed the company to reach workers across multiple job sites, accommodate varying schedules, and reinforce key messages through repetition. The month-long format also created opportunities for themed activities that captured attention and made financial education feel less like a chore.
Creating a Memorable Mascot
One of the most creative elements of the Mortenson program was the introduction of Guy Savingston, a bobblehead doll designed as a construction site superintendent complete with hardhat, tool belt, and megaphone. Modeled after Ty Pennington, the host of the television show “Extreme Makeover: Home Edition,” the mascot became the face of the company’s retirement campaign.
Each year, Mortenson’s manager of retirement benefits, Annette Grabow, collaborates with staff to develop a construction-themed slogan. One year, the theme was “Extreme Financial Makeover: Mortenson Edition.” Employees who attended financial education sessions were entered into drawings to win bobbleheads and other prizes, creating a direct incentive for participation.
Results That Speak for Themselves
The impact of Mortenson’s approach has been dramatic. Since launching 401(k) month in 2001, the company saw participation among nonunion construction workers rise from 20 percent to 71 percent. Office employees, including engineers and administrative staff, maintained participation rates around 80 percent, but the quality of their participation improved significantly.
| Metric | Before Program | After Program |
|---|---|---|
| Nonunion field worker participation | 20% | 71% |
| Office staff participation | ~80% | ~80% (stable) |
| Average salary deferral rate | Below typical | 9% of pay |
| Attendees who adjusted investment mix | Rarely | 100% after seminar |
Salaried employees at Mortenson now save an average of 9 percent of their pay into their 401(k) plans, roughly 3 percentage points higher than the national typical contribution rate according to the Center for Retirement Research at Boston College. More importantly, Grabow reports that employees today maintain what she describes as model portfolios, a direct result of seminars that taught workers about risk tolerance and asset allocation. Every attendee made changes to their investment mix in the year they attended, reducing cash holdings and increasing allocations to stock mutual funds. This is noteworthy because research consistently shows that workers rarely make investment adjustments on their own.
Implementing a Successful Retirement Education Program
Contractors looking to replicate Mortenson’s success do not need to create a bobblehead mascot, but they do need a structured approach. The following strategies are drawn from Mortenson’s experience and broader industry best practices.
Key Elements of an Effective Program
- Leadership commitment. Retirement education must be championed from the top. Mortenson’s program succeeded because dedicated staff invested time and creativity in its execution.
- Tailored communication. Generic benefits brochures do not work for construction workers. Materials must use construction-relevant language and imagery to resonate with the audience.
- Multiple touchpoints. A single annual email is insufficient. Mortenson’s month-long format provided repeated opportunities for workers to engage with the material.
- Incentives for participation. Raffles, prizes, and recognition create immediate motivation to attend educational sessions.
- Practical, actionable information. Seminars should address real concerns such as risk tolerance, asset allocation, and retirement income planning.
Expanding Beyond Retirement
Mortenson’s program has evolved beyond 401(k) education alone. The company now offers seminars covering wills, life insurance, and other financial topics unrelated to company benefits. This broader approach acknowledges that financial stress does not exist in isolation. Workers worried about estate planning, insurance coverage, or debt management are less able to focus on retirement savings.
The expansion into broader financial wellness reflects an understanding that financially secure employees are more productive, more engaged, and more likely to remain with the company. As Grabow herself noted, employees who are stressed about their home financial life are simply not as productive on the job. This observation aligns with Essential Role Civil Engineers Construction Workers, which highlights how worker well-being directly impacts project outcomes.
Measuring What Matters
Any retirement education program should include mechanisms for tracking its effectiveness. Key metrics include:
- Participation rate changes year over year
- Average contribution rate as a percentage of pay
- Average account balance growth
- Changes in investment diversification
- Employee satisfaction with benefits communication
- Retention rates among employees who engage with the program
Mortenson tracked these metrics from the outset, which allowed the company to demonstrate the program’s value to leadership and make data-driven adjustments over time.
The Business Case for Financial Wellness in Construction
Some contractors may view retirement education as a purely altruistic endeavor. While doing the right thing for employees is certainly a motivating factor at Mortenson, the business case is equally compelling.
Productivity and Focus
Financial stress is a major distraction in any workplace. Construction workers worried about mounting debt, inadequate savings, or uncertain retirement futures cannot give their full attention to the task at hand. On a jobsite where safety and precision are paramount, distraction can have serious consequences. A worker preoccupied with personal financial problems is more likely to make errors, overlook hazards, or experience reduced productivity.
By reducing financial stress through education and better retirement benefits, contractors can expect improvements in both safety and productivity. This connection between worker well-being and project performance is also addressed in Collaboration Between Civil Engineers and Construction Workers Best Practices for Project Success.
Recruitment and Retention
The construction industry faces a labor shortage. Skilled workers have more options, and benefits packages factor into their employment decisions. A strong 401(k) program with employer contributions and effective education can differentiate a contractor in a competitive labor market.
Hiring is expensive. The costs of advertising positions, interviewing candidates, conducting background checks, and training new hires add up quickly. When a company invests in retaining its existing workforce through benefits that workers actually understand and value, the return on that investment can be substantial.
Lessons for the Broader Industry
Mortenson’s experience demonstrates that the barriers to retirement savings in construction are not insurmountable. The challenges of a mobile workforce, varied educational backgrounds, and competing operational priorities can be overcome with creativity and persistence. Other contractors can adapt elements of the Mortenson model to fit their own company cultures and resources.
The PSCA provides free resources, including calculators and educational materials, that companies can use as a starting point. Even without a custom mascot or month-long campaign, simply dedicating focused attention to retirement education and measuring the results can produce meaningful improvements. When construction companies help workers build futures, everyone benefits, the employees, the company, and the industry as a whole.