All eligible employees may have equal access to their employer's 401(k) plan, but participation is anything but equal. A study by Ariel Investments and Hewitt Associates, "401(k) Plans in Living Color: A Study of 401(k) Savings Disparities Across Racial and Ethnic Groups," confirms what individual client studies have shown for years - that ethnicity is the No. 1 predictor of 401(k) plan participation. Supported by the data of 3 million 401(k) participants, researchers concluded that African Americans and Latinos save less, invest less aggressively in stocks and, as a result, have lower 401(k) balances compared with their white colleagues.

These findings have broader implications beyond preparing for retirement, since 401(k) participation has a positive correlation to employee retention, engagement, wellness and productivity.

Engaging diverse audiences

Ariel Investments has been calling attention to the wealth gap for years through its Black Investors Survey. In fact, Ariel called the 2008 report a "black paper" instead of a white paper because in 10 years of conducting the survey, blacks' average net worth actually decreased.

Ariel stated that things will change when companies take a more active role in educating employees and utilize auto-enrollment more widely.

The few employers that heeded Ariel's call to action delivered a more broad-based financial education beyond the self-study learning and independence-focused communication style that appeal largely to white males. Research shows that the factors that influence people of color to adopt better saving and investing behaviors are advocacy, face-to-face interaction, cross-culturally competent workshops and learning from the experiences of others. Unfortunately, large mutual fund companies - often the sole source of financial education because it's provided to employers for free - generally don't account for cultural preferences in their financial education approaches. Instead, their plain-vanilla approach is geared to steer lower net worth employees to Web sites and call centers.

There are some simple ways employers can better meet the education and communication needs of a diverse workforce, however. Here are some proven methods for engaging minority employees in an effort to improve their investing behavior:

>> Listen to them. Hold focus groups with key audiences to help them articulate the barriers to investing and design an approach to hit the mark.

>> Have the focus groups facilitated by someone who is the same ethnicity or cultural background as the target group. For example, the National Black MBA group collaborated with Hewitt Associates in the development of "Show Me the Money" financial education workshops offered to all participants of the 2008 national convention, complements of Kroger.

>> Partner with employee resource groups. Generally, employee resource groups have goals keyed to empowering the target population. Have a meeting with the group's leadership to see if financial empowerment could be added as a presentation topic.

If the group has a Web site, see if it's possible to post articles having to do with positive saving and investing behaviors. Add direct links to the company's 401(k) Web site so that employees can act on the information promptly. For example, Hewitt Associates sponsored Ariel President Mellody Hobson to kick off Women's History Month with a speech on financial empowerment of women. Hewitt also sponsored "The Art of Financial Success" workshops in seven states, reaching more than 500 women, which produced results including a 50% increase in knowledge retention and positive saving and investing behaviors.

>> Create a cross-cultural financial education approach. Develop workshops, Web sites and print materials that speak to financial topics in a way that resonates by testing the materials with your target audience before they are sent out. Beyond photos and colors that appeal to the targeted group, frame financial education in the world view of the audience.

There are efforts underway to build a multi-cultural financial education Web site that would feature financial planners of diverse backgrounds. Participants would simply click on the financial planner of their choice and they would then be led through a virtual financial planning discussion designed to be more closely aligned with the communication style and learning preference of the participant.