401(k) vs. Employee Retention

401(k)’s vs. Employee Retention

Aren’t 401(k)’s supposed to help companies retain employees?

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Did you know that only 38% of all employees who are offered a 401(k) choose to contribute, and that number drops to below 30% when segmenting millienials only.

Why don’t employees contribute, especially when there’s a match??

Checkout this article to learn why….

There’s a popular term being thrown around, “employee engagement”.

We’ve literally seen it mean everything from having sleeping pods in the office to software platforms that connect management to their employees.

Well, just so we’re clear:

A recent Gallop poll shows that almost 70% of America’s workforce is disengaged AND would leave for AS LITTLE AS a 5% pay increase.

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What percentage of your employees do you think would consider leaving your company for a 5 or 6% pay increase?

Multiply the number of employees with your employee replacement costs (lost revenue+scouting+interviewing+onboarding+training+ramping up).

# ee’s X $ = $$$$$$$

At NetWellth, we define “employee engagement” as influencing employees to want to stay at your organization without having to increase their compensation.

Photo by Andrea Piacquadio from Pexels

What do employees need to feel engaged?

– Mutual respect for/from their superior(s) (semi-annual management training)
– Believe in the long-term vision of the company (aligned employee benefits and profit sharing)
– Feel like they’re part of team and their feedback is valued (monthly team building)
– Have potential for advancement

Check out our original piece and lets discuss how you can drive significantly more to your bottom line by getting a handle on employee retention.

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