Our Company Is Growing Fast. Is Our 401(k) Keeping Up?

Growth is exciting.

You’re hiring.

Revenue is growing.

New opportunities keep coming.

The company that had 25 employees suddenly has 50.

Then 75.

And you’re already talking about 100.

But here’s a question growing companies don’t always stop to ask:

Did your 401(k) grow with you?

The Plan You Started Years Ago May Still Be the Plan You Have Today

That’s not necessarily a problem.

But think about how much your company has changed.

You may have:

• More employees
• More locations
• A larger HR team
• More payroll complexity
• More plan assets
• Different employee demographics
• More competition for great employees

Meanwhile, your retirement plan may look remarkably similar to the one you established years ago.

At some point, it’s worth asking whether it still fits.

Growth Has a Way of Exposing Friction

When you’re small, it’s easier to work around things.

HR can answer another question.

Someone can make another phone call.

The owner can step in.

You can manually fix one more process.

As you grow, those little inefficiencies start multiplying.

That’s when you may notice:

• HR spending too much time on the 401(k)
• Employees not knowing where to get help
• Service taking longer than expected
• Education not reaching everyone
• Providers not communicating well
• Technology creating work instead of eliminating it

None of those things automatically mean you need to replace your providers.

They do mean it’s worth looking at how the plan is being supported.

The 401(k) That Got You Here May Not Be the One That Takes You There

A company with 30 employees has different needs than a company with 150.

Your retirement plan should be able to evolve too.

Sometimes that means changing the plan design.

Sometimes it means better employee education.

Sometimes it’s technology.

Sometimes it’s changing a service provider.

Sometimes it’s simply adding more retirement plan expertise to the team you already have.

Growth doesn’t automatically require change. It requires evaluation.

Don’t Forget the Employees

Your employees are helping build this company.

They’re driving the revenue.

They’re shaping the culture.

And as you grow, you want them to feel like the company still has their back.

That includes their retirement benefit.

Employees don’t need to become 401(k) experts.

They need to understand what they have, know where to get help and feel confident using it.

That becomes harder to deliver informally as your workforce grows.

It needs to become intentional.

Approaching 100 Employees?

There are also additional considerations that can arise as retirement plans grow, including when a plan may become subject to an annual audit.

It’s not simply a matter of hitting 100 employees.

If you’re getting close, we’ve explained that separately in our guide:

401(k) Audit Requirement: What to Know Before Reaching 100 Participants

The bigger point?

Don’t wait until your growth creates a deadline.

Your Retirement Plan Should Make Growth Easier

Your HR team is already dealing with the challenges that come with a rapidly growing company.

Your 401(k) shouldn’t become another thing they’re trying to hold together.

The people supporting the plan should help make their lives easier.

And employees should feel like they have somewhere to go when they need help.

Key Takeaway

The 401(k) that helped your company get from 25 employees to 75 may not be the 401(k) that should take you from 75 to 150.

That doesn’t mean something is wrong.

It means your company grew.

Your retirement plan should grow with it.

If you’re hiring quickly and wondering whether your current plan, providers and employee support are ready for what’s next, that’s exactly the time to have the conversation.

Not after something becomes a problem…before it does.