Leveraging 401(k) Power for Competitive Recruitment
In today’s fiercely competitive job market, companies need to differentiate themselves by offering more than just a competitive salary. Employers often focus on salary and overlook other critical benefits. One powerful yet often underutilized tool is the company’s 401(k) plan. By highlighting a robust 401(k) offering, companies can attract prospective employees who value long-term financial well-being. A 401(k) plan with features such as immediate vesting, generous employer matching contributions, and a short waiting period can be a significant draw. When candidates see that a company is committed to helping them build a secure financial future from day one, it adds a compelling layer of appeal that goes beyond the immediate paycheck.
Integrating the 401(k) plan into the recruitment process can be a game-changer. During interviews, HR professionals should thoroughly explain the benefits of the 401(k) plan, emphasizing how it stands out compared to what other employers might offer. This can include showcasing real-life examples of how current employees have benefited from the plan, outlining the potential long-term financial gains, and even providing personalized projections. By doing so, candidates can see the tangible value of joining the company, not just for their current job satisfaction but for their future financial security. This approach not only attracts top talent but also fosters a sense of trust and loyalty from the outset, positioning the company as a forward-thinking and employee-centric workplace.
Fred Barstein, CEO and founder of The Plan Sponsor University, interviewed Briea, an HR generalist for a company with around 75 employees, after a successful program at the University of North Florida. Briea discussed how she uses her company’s 401(k) plan as a competitive recruiting tool, emphasizing its immediate vesting and short nine-day waiting period. She highlighted that during interviews, her HR team spends time explaining the comprehensive benefits of their 401(k) plan, demonstrating its long-term value beyond just salary.
Read the Full Transcript Here:
Fred Barstein:
This is Fred Barstein, CEO and founder of the Plan Sponsor University. Just completed a very successful program at the University of North Florida. I’m here with Briea. Welcome, Briea.
Briea:
Hi.
Fred Barstein:
Okay. If we ask you a few questions?
Briea:
Of course.
Fred Barstein:
Okay, thank you. So before we do a little bit about yourself.
Briea:
So my name is Briea. I am currently the HR generalist for a company that’s about around 75 employees.
Fred Barstein:
Right. Great. So today you brought up a really important, I think interesting, is how you’re using the 401(k) as a recruiting tool. How are you doing that?
Briea:
Yeah, so today’s recruiting environment is more competitive than ever and employees want companies to support them holistically, not just give them a paycheck. So my 401(k) plan is pretty rich. It’s vested out the gate. There’s only a nine-day waiting period. And so I tell people when you come into my company, if you entrust us with your funds, your money will go a lot further for you in terms of retirement than it would at other companies that maybe will hold your funds hostage, or the vesting schedule, or will make you work a year, year and a half before you’re even able to contribute to the plan.
Fred Barstein:
Right. Right. So you’re focusing on that 401(k) and the benefit to them versus just, “We have it.”
Briea:
Absolutely. So one thing that my team does is whenever we have an interview, HR, someone from the team, goes in and does a 15-minute close. And part of that is we highlight all of our benefits and a big chunk of it is going over 401(k) and explaining to people all the benefits that coming here will have for them long term. And that just the short-sighted of what will be my base salary paycheck.
Fred Barstein:
Right. Right. It’s more important. So final question, a couple of things you learned? How was the program today?
Briea:
Absolutely. So I learned a lot about my responsibility as a plan sponsor. I recently kind of got 401(k) under my belt with a promotion I received. And I was not at all familiar with fiduciary responsibility and kind of what all that entails. This training really gave me a great understanding about what I’m responsible for, what my broker should be helping me out with, and now I have a laundry list of questions to give my broker and ask them to ensure they are providing me the best service that I can to keep my employee’s money safe and to keep me safe from that kind of fiduciary responsibility.
Fred Barstein:
Great.
Briea:
Yeah.
Fred Barstein:
Well thank you. Thank you.
Briea:
Thank you very much.
Fred Barstein:
Thank you for your time. And thank you for watching 401kTV.
