To encourage employees to stay with a company longer, it’s crucial to make them feel genuinely valued and invested in. Offering employer matching contributions to retirement plans is a powerful way to achieve this, as it not only enhances employees’ financial security but also strengthens their loyalty to the company. Implementing shorter vesting periods, such as two or three years instead of the standard five or six, further incentivizes employees to remain with the company by allowing them to fully own their matched contributions sooner.
Beyond financial incentives, personalized career development opportunities and regular recognition are key to fostering a deeper connection between employees and the organization. When employees see that their growth is actively supported and their contributions are acknowledged, they are more likely to feel committed to the company. By combining meaningful financial benefits like employer matching and shorter vesting periods with personalized support, employers can create a workplace environment that encourages long-term retention and engagement.
In a recent interview on the campus of Rutgers University’s, Fred Barstein, founder and CEO of TPSU and 401KTV, spoke with Nandini following a successful TPSU program. The discussion focused on the role of 401(k) plans in recruiting and retaining employees. Nandini emphasized the importance of employer matching contributions and shorter vesting periods to make retirement plans more appealing, particularly to younger employees like millennials. She highlighted that these incentives could encourage employees to stay with a company longer by making them feel more valued and invested in.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein, founder and CEO of TPSU and 401KTV here on the New Brunswick, New Jersey, campus of Rutgers, where we just completed a very successful TPSU program. I’m here with Nandini. Welcome, Nandini.
Nandini:
Thank you.
Fred Barstein:
Okay if we ask you a few questions?
Nandini:
Absolutely.
Fred Barstein:
Okay. So, one of the things that we talked about and we are seeing more and more is recruiting and retention using retirement plans to recruit intention. Number one, are you seeing that, and what can employers do to make the 401(k) help with recruiting and retention?
Nandini:
Mm-hmm. That’s a great question. When I’m looking at employers, I think something an employer can definitely do is have some type of matching setup where an employee can contribute a certain portion of their salary to their 401(k), an employer will match it at certain contribution. I think that’d make it really enticing for someone to stick around for a longer period of time.
In addition, for shorter vesting periods, sometimes you see companies out there that have larger vesting periods. And especially myself, I’m a millennial. So, for us to stick around for a job, we really want to feel like you’re investing in us. You’re saying, “Hey, you might have a two- to three-vesting year period,” might be something that would be more enticing as opposed to five or six years.
Fred Barstein:
That’s great. Final question: What couple of things you picked up at TPSU and would you recommend it for people?
Nandini:
Definitely. I think the first one is really having a strong advisor.
Fred Barstein:
Right.
Nandini:
So, setting yourself up with someone, asking the key questions that really will meet your organization’s needs and really fill some of that support that you need. In addition, just having a strong program structure design. So, really better understanding how many investments do you need in your plan and how to set that up appropriately that align to your target population or your employees.
Fred Barstein:
Great. Thank you for contributing today-
Nandini:
Thank.
Fred Barstein:
… and attending TPSU, and thank you for watching 401KTV. Please stay tuned.
