First, it was the defined-benefit pension that became a dinosaur. Now, the 401(k) match is reaching relic status.
If you’re hiring, and if you still have the match, that’s something you’ll want to mention to candidates as a plus. Fewer and fewer companies can make that claim in 2009, according some recent surveys.
Let’s start with the Big Boys: General Motors, Eastman Kodak, FedEx and Sears are among the larger employers that have suspended company contribution to 401(k)s.
And a new survey by business researcher Spectrem Group says 29% of employers intend to reduce or eliminate contributions in the next 12 months.
Watson Wyatt Worldwide says that 12% of 245 large companies surveyed have already cut their 401(k) matches, and another 12% plan to do so in the next 12 months.
What employees think
Most employees seem resigned to the bad news. Nearly half of workers said in November 2008 that they were concerned that the sour economy would cause their employers to cut back on matches to 401(k)s, according to MetLife’s Employee Benefits Trends Study.
The good news: 56% of workers now say they appreciate their workplace benefits more than ever before.
