Latest Job Perk: Firms Adopt Automatic Retirement Savings Plans to Attract More Workers
As “The Great Resignation” continues, with record numbers of workers quitting in August and two in three workers looking for new jobs, employers are trying harder than ever to recruit and retain talent.
See: COVID-19 Pandemic: One Year Later, Women are Twice As Burnt-Out As Men in the WorkplaceFind: AARP Retirement Study Shows 92% of Voters Want Simplified Savings Through Paychecks
The latest in a line of perks and benefits? Enhanced automatic retirement savings and reduced healthcare costs.
Global accounting and consulting firm KPMG told Forbes Monday that it is introducing an automatic, employer-funded retirement program. Whether or not they contribute to the 401(k), KPMG will provide an automatic 6% to 8% contribution for all workers.
On the downside, the company has frozen its pension plan, so the matching retirement contributions will help compensate for that change. KPMG Chair and CEO Paul Knopp told Forbes that, for all but the most senior employees, the automatic contribution will be higher than the combined value of existing plans — and is more portable for workers, too.
Additionally, the company is expanding its paid family leave program, reducing health insurance premiums for workers by 10% and adding “caregiver leave” for bereavement or to care for an aging, injured, or ill family member.
KPMG is not the only firm providing enhanced benefits right now, either.
A recent survey by Alight, a cloud-based human capital solution provider, found that 23% of companies offer their workers retirement funds that don’t require employee contributions.
See: 40% of Americans Fear Retirement More Than Death — Here’s WhyFind: Would You Consider a ‘Golden Girls’ Retirement? Plus 5 More Out-of-the-Box Retirement Ideas
Melissa Elbert, a partner at insurance brokerage Aon, told Forbes, “It’s emerging. Companies are absolutely thinking about how their retirement plan can promote retention, which is a huge concern right now.”
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