Posted in: In this week's e-newletter, Industry Spotlight, Investing Trends
Some companies are getting smarter and taking steps that enhance their retirement plans, so their best people stick around.
One way companies can do that: restructuring the match on retirement plans.
The majority of employer 401(k) matches reward all employees equally, regardless of how long they’ve been with the company.
Restructuring the match rewards loyal employees and gives newer workers something to look forward to.
For example: A company can structure its match to give:
- 25% on the first 8% of pay to employees who are with the company less than five years.
- 50% on the first 8% of pay for those with five to 10 years of service.
- 75% on the first 8% of pay to those with 11 to 15 years of employment.
This match idea can work for all kind of employers, including new or startup companies, as well as established firms with a good number of veteran employees.
Do your clients offer better matches for veteran employees? Let us know about it.