Firms See 401(k) Plans As Necessities, Not Luxuries
August 16, 2008
American companies are upgrading their 401(k) plans with features such as automatic enrollment, advice and more investment options, according to a survey by Charles Schwab.
Companies are also either initiating matching contributions, or increasing them, in an effort to recruit and retain top-grade workers. Schwab polled 208 executives through an online survey by CFO Research Services and found that 55% plan on strengthening their plans.
“Executives realize that if employees are stressed out financially, have excess debt, it really makes them less productive,” Dean Kohmann, vice president of 401(K) plan services for Schwab. “There's a real financial benefit to the company, a long-term financial benefit, for their employees to be on track for retirement and financially fit.”
Other findings: 84% of those polled agreed that a 401(k) plan is necessary to recruit and retain a high-quality work force, 67% believe offering a 401(k) plan enhances a company’s reputation and 58% said it contributes to long-term financial success.
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