Employers: Retain and Attract Employees with Employer-Sponsored Retirement Plans
Employer-sponsored retirement plans at the workplace have the potential to retain current employees and attract new employees.
According to the Transamerica Center of Retirement Studies, workers highly value employer-sponsored retirement benefits. In fact, retirement plans, like an employer-sponsored 401(k), play an import role in job selection.
The 17th Annual Transamerica Retirement Survey: A Compendium of Findings About American Workers reports 88 percent of workers view an employee-funded retirement plan as “very” or “somewhat” important. (1)
Additionally, 78 percent of workers agree that the retirement savings programs offered by a prospective employer will be a major factor in their job search decision. (1)
Retirement plans are so important to workers that when selecting between two hypothetical job offers, workers are equally likely to say they would select a job with a higher than expected salary, but poor retirement benefits (50 percent) versus a job with excellent retirement benefits, but only meeting minimum salary requirements (50 percent). (1)
Therefore, employers may want to re-evaluate the importance on the ability to attract employees with employer-sponsored retirement plans.
The survey also reports workers may switch employers for better retirement benefits.
The majority of workers (60 percent) whose employers do not offer a retirement plan would be likely to switch jobs for a similar job with a retirement plan. Among all workers, more than half (54 percent) would switch jobs for a better retirement plan. (1)
Encourage retirement readiness for your employees by offering employer-sponsored retirement plans. It will not only attract potential employees, but also retain the ones you have.
1 – http://www.transamericacenter.org/docs/default-source/retirement-survey-of-workers/tcrs2016_sr_retirement_survey_of_workers_compendium.pdf