The spotlight’s been focused on employee benefits lately, with a steadily low unemployment rate that’s left businesses scrambling to stand out while granting jobseekers the luxury of being picky.
And guess which work perk is high on employees’ must-have list? Yep, the 401k.
In fact, 91 percent of workers agree that a company’s 401k plan (or lack thereof) had at least some impact on their decision to take a job, according to a recent survey by Betterment for Business. For almost seven in 10 (67 percent), it was an important or very important factor.
Data further suggest employees don’t simply want a plan at this point—they want a good one. Nearly three-quarters (72 percent) of respondents are aware of the term “fiduciary,” and among those who are, around half (49 percent) think it’s important that their plan provider be a fiduciary.
Fees matter, too. Most workers (85 percent) agree or strongly agree that 401k plan fees should be transparent and low-cost. And the majority are monitoring their accounts to be sure. Just under two-thirds check up on it regularly—for some once a pay period, for others more often than that.
In terms of employer matches, around half (46 percent) of respondents admit a match played a part in persuading them to accept their current position. Eight in 10 (78 percent) who are offered a match take full advantage of it, as well.
But even though employees are noticeably committed to setting themselves up for post-work success, some businesses are overlooking this opportunity to attract and retain talent.
Nearly a third (30 percent) of survey respondents say they didn’t come across any information related to companies’ 401k plans when searching for job openings.
“With more than two-thirds of employees evaluating retirement benefits during employment consideration, it is clear the 401k has the staying power that will resonate longer and with more employees than trendy benefits like nap rooms and paternity leave,” Betterment noted in its report.
“Employers must not only offer a 401k and ensure that the benefit is communicated to potential and current employees, but also that the provider they select to deliver can meet the key criteria the modern employee demands: trusted advice, easy access to account status, and transparent, low fees,” the report concluded.