Enhancing Employee Retention and Financial Wellness

With employee retention as a priority for many Texas school districts, Andrews ISD has taken a proactive approach by introducing a financial incentive designed to promote both employee stability and long-term financial wellness.

A recent article from the Texas Association of School Business Officials (TASBO), Boosting Retention & Retirement Participation, highlighted how Andrews ISD addressed employee retention challenges while also supporting employee financial security.

After learning about the strategy at a TASBO conference, the district’s CFO quickly brought the idea back to Andrews ISD. The initiative included automatic retirement plan enrollment with a 1 percent salary increase and a 1 percent district match — offering employees an immediate financial benefit and simplifying their path to retirement savings. This approach also enhanced the district’s appeal to potential job candidates.

The rollout focused on educating staff about retirement planning, using clear examples to demonstrate how a small reduction in take-home pay could lead to significant long-term gains thanks to the district’s matching contribution. 

The results were impressive. Though there was an option to opt out, 94 percent of employees participated in the plan. Andrews ISD not only strengthened its retention efforts but also made a meaningful investment in the financial future of its workforce.

While employer matching retirement contributions are more common in the private sector, this approach may gain momentum in education as districts seek to provide more innovative and competitive benefits.