Searching on ways to avoid the Great Resignation? If so, try amping up your financial support of employees. Specifically, do what you can to improve your 401(k) program and student loan benefits.
Financial benefits are taking priority as the top benefits, according to a study by Bettermen.
Betterment’s 401(k) business surveyed 1,000 full-time employees. The financial advisor asked question about their understanding of financial wellness and how they rated their own, as well as what they wanted in benefits.
During the pandemic, people have had to tap their emergency funds, and it stressed them out. Now, they want their employers to provide more financial support with retirement planning and student loan debt.
What? Aren’t they two different ends of the spectrum?
Yes, but think of it this way. The pandemic caused stress to many people’s budgets. Those who are getting closer to retirement are certainly going to worry about whether they’ll have enough money to live off once they do retire. And the younger employees with mounds of student loan debt are worrying about how they’re going to pay it back.
Financial benefits: 401(k), student loan
While you would think paid time off and working from home would be the most important benefits to offer for retention, you’d probably be correct in some instances. But in this study, 74% of respondents said if another company had better financial benefits they’d probably leave. And the two benefits they were most attracted to were “a high-quality 401(k) or other retirement plan” and “a 401(k) matching program.”
Another interesting finding from this study: 78% said they take advantage of most or all their employers’ financial benefits. For those who don’t, the reasons were:
- weren’t sure what benefits were offered (36%)
- hadn’t gotten around to signing up yet (30%)
- didn’t need them (19%)
- didn’t know how to sign up (11%), and
- other (16%).
What can you do?
Talk with the powers that be and see if you can increase your 401(k) matching at all. It would cost money, but in the end you’d save money by lowering your turnover and recruitment costs.
Secondly, see if you can offer some kind of student loan benefit.
And finally, make sure your employees know what financial benefits you have, how to access them and sign up, and how to use them.