Even in a time of increasingly trendy benefits aimed at attracting and retaining younger employees, the 401(k) is still a valuable recruiting tool—that’s the word from Betterment for Business.
Results of its 2018 Customer Survey indicate that, although employers are diversifying the funds they spend on employee benefit packages as they seek to lure younger workers with much-needed skills, the 401(k) is holding its own against such newer offering as unlimited paid time off, tuition reimbursement and professional development opportunities.
In fact, 67 percent of respondents said that when evaluating a job offer, a good 401(k) plan was very important or important in their consideration; only 9 percent said that it had no impact at all on their decision to take a job.
Incidentally, a lot of employers are missing the boat by not using their 401(k)s as recruiting tools; 30 percent of respondents said that during their job search, details of the company 401(k) never came up at all.
Matching funds are important, too. Not only do 46 percent of all respondents say that a match played a role in whether they took their current jobs, once they get hired they take full advantage of it—with 78 percent of people who have a match contributing enough to take advantage of the maximum allowed.
Employers who don’t match funds in a 401(k) are doing their employees a disservice, since 10 percent of people who don’t participate in their company’s 401(k) plan say it’s because the company doesn’t match their contributions.
Workers are paying attention to other things about 401(k)s, too. Nearly half—49 percent—of respondents said that it’s important for their 401(k) provider to be a fiduciary, and 64 percent say they check their accounts a minimum of once every pay period, if not more often.
In addition, over 57 percent strongly agree that their 401(k) plan should offer transparent and low-cost fees.