With compensation and benefits packages ranking as the top tools for employee retention and attraction, it’s no surprise that employers are investing in retirement plans.
Americans have invested more than $5 trillion in 401(K) plans, which represents almost 20 percent of the total retirement savings Americans have, according to the Investment Company Institute. Recent figures suggest that more than half a million employers have 401(K) plans, and nearly 55 million workers participate in these plans.
ForceBrands’ 2019 Talent Market Report, which surveyed more than 500 full-time hiring decision-makers and leaders across CPG, found that 401(K)s — with and without company contribution — are the most popular retirement benefits currently offered with 75 percent of employers offering the retirement savings program. Out of all the companies surveyed that offered 401(K) matching, the majority (75 percent) matched an average of 5 percent of an employee’s salary while 25 percent matched an average of 50 cents on the dollar.
Stock options also topped the list of the most popular retirement benefits, proving the power of the ‘ownership mentality’ to attract and retain top talent.
But 401(K)s and stock options aren’t the only retirement benefits CPG employers are offering to remain competitive. Access to financial planners, life insurance, profit sharing, equity, and financial literacy training also top the list.
But no two industries are the same. In the wine and spirits and food and non-alc beverage industries, life insurance is the top retirement benefit offered, which takes the third spot overall across all industries.
For more insights about CPG retirement benefits, download the report here.