by Deena Rini, Vice President and Practice Leader of Retirement Plan Services – Oswald Financial, Inc.
Retaining good employees can be a great challenge for many managers and companies. According to CNBC, in 2019, 58% of young millennial workers plan to change jobs this year alone. Forbes reports that in 2019, 43% of millennials are planning to quit their current job within two years, and only 28% plan to stay in their current role for more than five years. So how can you compete with these statistics?
Today, employees are looking for more than just a high paying salary. They want a distinct and relatable culture, flexible schedules, solid values and new challenges. One significant way employers can contribute to these needs is to offer a well-structured and managed retirement plan.
A well-designed retirement plan not only helps employees save for retirement, but it provides an opportunity to give employees a sense of security and overall better financial health outlook. Retirement plan advisors have stepped outside the box to guide employers on how to create a custom retirement package to entice employees to stick around through retirement.
Our role as an advisor is to help our clients structure their retirement plans so they are suitable for both the employers and their participants. If employers want to design their plans to be an enticing retention tool, here are five options to consider:
- Offer a generous match
- Offer a comprehensive financial wellness program, including one-on-one meetings with an advisor for employees
- Offer diverse, cost effective investment options that are monitored by an advisor
- Provide enhanced security programs that aim to protect assets and information
- Stay in tune with industry trends, such as student loan assistance programs and purchase programs that increase contributions by spending that can run simultaneously with your current plan
Retirement plans have evolved over the years to become more than just a save and match program for employees. They are complex tools for employers to offer their employees that help them save for retirement, enrich their lives and strive to enhance their financial health. While retaining employees isn’t as simple as just offering a great retirement plan, it is often an overlooked value add. So ask yourself, are you leveraging retirement for retention?