Construction workers, farmers, and forestry employees are among the least likely workers to have access to a workplace retirement plan, according to analysis from small plan provider Guideline Inc.

The recently-published research, which draws from Bureau of Labor Statics’ data, found that, on average, about 72% of workers are offered retirement benefits as of the first-quarter of 2022, the most recent data available.

Not all industries are created equal when it comes to workplace retirement plan access, however. Construction, extraction, farming, fishing and forestry clock in at the lowest rate of 65% plan access, as compared to management, business, and financial service businesses being most likely to offer a plan at 87%.

Blue collar industries and service jobs often have the lowest retirement plan benefit rates due to transitory workforces and roles with hourly pay, according to the Guideline analysis. But changing worker expectations, along with state mandates for retirement plans, could boost those rates in coming years, says Jeff Rosenberger, chief operating officer for the firm. 

“Worker expectations are changing,” Rosenberger says, noting that part of Guideline’s strategy is reaching small businesses in underrepresented fields. “Because of the state mandates and the labor market expectations across all industries, there is a greater expectation from workers that they would like access to a retirement plan.”

Rosenberger says state mandates are partly responsible, not just because businesses need to start offering plans, but because news of the mandates is driving interest from employees.

“Most workers are smart enough to know what really matters,” Rosenberg says. “Yes, they want higher compensation, but after that you are pretty quickly into things like, do I get paid time off, and then health insurance, and then retirement savings—usually in that order.”

Rosenberger sees a role for small business financial advisers, accountants, and payroll providers in improving the plan coverage gap across industries.

“In some cases, they know their industries really well, and they are all paying much more attention to retirement plans,” he says. “That is where there is a lot of energy and focus to better understand what is available to their clients.”

Sectors in Focus

Guideline’s research broke down both availability and participant rates for retirement plans by sector, which were both more likely among white collar professions. Roles in management, business, and finance not only provide a better chance to be offered a workplace plan, but employees also participate at the highest rate of 79%.

The second-best sector was professional services, such as teachers and nurses, which had an 87% offering rate and 74% average participation. The third-best sector participation was in protective services, such as fire fighters, police officers, and correctional officers, with a 78% chance of having the benefit, and a 66% participation rate. After that, office and administrative services came in fourth in terms of access at 77%, with average participation of 60%, according to the study.

From there, workplace offerings dropped below 75%. Fields such as production, transportation, maintenance, and sales all showed lower access as well as participation.

Rosenberger says that retirement plans, even if offered, may have less participation if workers are in the field all day, as opposed to being on computers. He says in this case, a mobile option for signing up, managing, and tracking retirement savings is important.

“For lots of the workforce, especially if they are field based, mobile is all you have,” he says. “You must meet people where they are, and that is the medium where more of them are. If you are in professional fields, you’re much more likely to be at a desk-based job and on a computer for many hours of the day—but that’s actually a minority of the workforce.”

Rosenberger notes that Guideline recently launched a mobile application for participants to access their platform.

When asked what industries Guideline sees as improving plan access, Rosenberg noted the restaurant and retail spaces in particular, two industries that have traditionally struggled with workplace retirement plan offerings.

“There’s a lot more interest from these industries,” Rosenberger says. “People who are working as waiters and servers at restaurants have been thinking about retirement plans and realizing they need to be saving.”

Rosenberger says state mandates are partly responsible, not just because businesses need to start offering plans, but because news of the mandates is driving interest from employees.