Benefits sponsored by employers make American employees more likely to stay
Employees in the US are much more likely to stay in a company that offered retirement savings plan that are sponsored by employers, a study by Voya Financial said, as reported by Plansponsor. 71% of the respondents of the study said this which was an increase from the 60% in the previous year.
The findings also showed that 75% of the respondents said they were more likely to stay at a company if they were offered a competitive salary or compensation package.
Flexible work hours were desired by 70% employees while ways to improve financial wellness, physical health benefits or programs, and financial wellness benefits or programs all garnered 61%.
51% of the employees were also more likely to stay in the company if they received education, guidance, tools, and resources that can help them in reaching their goals for retirement. This number goes even higher with employees who have student loans, amounting to 63% in comparison to those who don’t (48%).
The study also found that employers are a critical source of support for retirement savings.
Last year, the SECURE 2.0 Act was passed to address the retirement crisis that the US was facing, as reported by Forbes Advisor. The passing of this law paved the way for new provisions regarding retirement reforms. One of them being that employers were now given an option in considering student loan payments as elective retirement contributions.
As student loan payments often prevent employees from saving for their retirement, this option makes it so that employees will be eligible for matching contributions that can allow them to save more for their future with their employer’s support.
Voya Financial’s findings were from a survey conducted on June 12 and 13 with their respondents being 1,004 adults. 483 of them had either full-time or part-time jobs.
