Successful relationships are built on trust. So are successful 401(k)s and 403(b)s.

Trust drives employee engagement, commitment and profits. According to Watson Wyatt, where employees trust leaders, shareholder returns are 42% higher than where distrust abounds.

In the retail world, customers expect sales pitches that ignore or downplay disadvantages.

Although dishonesty isn't tolerated, customers know they're being sold.

Expectations are different in the workplace.

Employees expect clear, complete and honest communication. When they don't get it, trust weakens and commitment suffers - and so may profits.

Employees who don't trust 401(k)s, 403(b)s, or their employer aren't likely to take full advantage of the plan, even with automatic enrollment.

Unfortunately, the retail approach to selling is sometimes used in 401(k)s and 403(b)s.

By all means, communicate your 401(k) or 403(b) aggressively.

But don't sell it using slick tactics and uniquely defined words. Be straightforward. Use clarity to build trust and create understanding.

Employees deserve courteous and efficient treatment when they use their retirement plan and other benefits. Except for that, don't treat them like retail customers.

Unfortunately, in the mutual fund industry, the communication/education function has its roots - and sometimes its offices - in sales and marketing departments.

Naturally, these communicators have a proclivity toward selling, albeit within strict regulatory constraints.

Their goal is to acquire customers and their money. That's fine.

But sometimes they use retail words and concepts that should not be used in the workplace.

These communicators are not trying to mislead employees. They're just doing what's been done for years.

Say what you mean

Here are a few examples of retail language that should not be in the workplace.

• "When you leave, you're entitled to your contributions and growth." Promise? Ask participants who invested in S&P 500 funds in early 2001 and took a distribution a couple years later. Many got less than their contributions and zero growth. Rather, you might want to say, "When you leave, you're entitled to the full value of your contributions in your account based on investment performance, including any growth."

• "Our 403(b) has no sales fees." At best, it's a half-truth. Shouldn't employees know about the fees they do pay, not just the ones they don't? Statements like these - or lack of prominent mention of fees - could lead most employees to think their 401(k) or 403(b) has no fees.

• "Your contributions remain credited to your account." Instead: "Your contributions, minus fees, and plus or minus investment gains and losses."

• "Your money grows." Another promise? The true meaning is, "Your money is invested" or, "Your account shares in the performance of your investments," so say that.

• "You'll need around 80% of your pay when you retire." Literally, that says a person making $50,000 needs $40,000 to retire. This oversimplification of the replacement ratio concept misses the most important part-longevity. You'll need $40,000 each year. If you live 25 years in retirement, you'll need 25 times $40,000 - $1 million from various sources.

• "You're offered a full range of investment options." Avoid words that lack precision, like comprehensive, complete and ample.

Undefined jargon, undisclosed fees damage trust

Granted, employees should learn some retirement-related terms.

But all the jargon is unnecessary and can be overly confusing to employee-investors. For example, is:

• Wealth building a bank building?

• A large-cap fund an investment in companies that make big hats?

• Capital appreciation being satisfied with the center of government?

• In-kind just being nice?

• A portfolio something artists carry?

• Your salary reduction something to avoid?

• A premature distribution a condition to consult a doctor about?

In other words, lay terms - not jargon - are the best way to communicate plans and engender employee trust.

Further, according AARP, 65% of 401(k) participants believe they pay no fees for their 401(k) investments; another 18% don't know if they pay.

Obviously, the way fees have been communicated to participants hasn't been clear.

Soon the government will almost certainly require clearer 401(k) fee disclosure.

Most employees will be surprised they've been paying for the 401(k). That won't build trust.

Aside from fees, there are other things employees don't know or understand about 401(k)s that they expect their employer to tell them. It's better to tell them now.

Tips for strengthening trust

To strengthen employees' trust in your 401(k) or 403(b) communication:

• Read plan materials aloud to your adult children, spouse, friends or a small group of nonparticipating employees. Each time you feel the need to elaborate on what you've read, or if you feel uncomfortable because of the promotional nature of the content, circle it. This isn't much fun, but it can be enlightening.

• Distribute copies of brochures, presentations, Web content and other materials to a small group of employees, not HR staff or folks from the finance department. Ask the group to circle words, phrases, graphics or concepts that are not clear and photos that don't look like "our people."

• Give a summary of the circled items to your 401(k) or 403(b) communications provider, and ask them to clarify those points.

• Redo these steps with the revisions to evaluate the improvements.

Sending messages that aren't trusted is not only ineffective, it may be harmful to your workplace environment.

Ask your retirement plan communications provider how it ensures that messages - the look, tone, content and messengers - are is trusted by employees.

Without trust, even the greatest plan designs will fail to get employees to take full advantage of the plans.

Dennis Ackley, president of Ackley Associates in Lee's Summit, Mo., has 30 years of HR consulting experience at firms including Watson Wyatt and Towers Perrin. Before starting his firm, he was vice president of participant services at JPMorgan/American Century.