Which employee benefits are most important to retaining a stable, experienced work force? In the comment below, one CEO reports on his conversations with long-serving employees on their 5-year anniversary dates.
I would note there are many elements to creating a dedicated employee culture and team spirit. But this benefit seemed to resonate in this credit union.
A CEO’s Analysis of the Importance of a Specific Benefit Plan
I often ask about what has motivated employees to stay with our credit union on their 5. 10. 15. and 20 year anniversaries.
Our 401(k) is usually at or near the top of their reasons.
Data show we are exceeding the performance of similar-sized credit unions in nearly every measurement:
Contribution Rate: 19% – Percentage of annual salary between both employer and employee contributions. Peer 12%
Participation Rate: 91% – Percentage of employees that are participating in the plan. Peer85%
On-Target for Income Replacement: 80% – Percentage of employees that are estimated to “replace” 80% of their income with their 401(k) investments. Peers 56%
Investment Mix. 87% – Percentage of employees that are invested at a risk level commensurate with their age | Peers 87%
These employees practice smart financial planning for tomorrow. How does your retirement plan participation compare?