Winning Workplaces

With all this talk of unwarranted bonuses at big companies, it's easy to assume that anything that's a hit to a company's bottom line when it comes to benefits is long gone.

Not so (yet) with 401(k)s, though, as Nancy Dittmer reported today on the RSM McGladrey ESOP Blog. She cited a new WorldatWork and American Benefits Council survey of over 500 members of WorldatWork, a global human resources association. The survey found the following:

74% of employers reported no change in the employer matching contribution.
15% have either increased or are considering increasing the employer match.
8% have either decreased or are considering decreasing the 401(k) match.
3% percent reported eliminating the match.

The survey also found, according to the groups' joint press release, that

more than nine out of ten U.S. companies offer an employee 401(k) plan. In addition, despite the widely reported drop in account balances, two-thirds (66 percent) of organizations indicated that at least 70 percent of eligible employees participated in those 401(k) plans in 2008.

This is encouraging news. After all, our 2008 Top Small Workplaces can connect their focus on funding strong employee retirement plans, as part of a set of comprehensive employee engagement best practices, to their overall growth and profitability – even during these trying times. Consider this data from last year's 15 winning small firms:

All 15 winners offer their employees a retirement plan
Their average 401(k) company match is 2.8%
Their average annual revenue growth the last two years is 23%
In 2007 their revenue per employee was over $233,000

The moral? When it comes to employee engagement, slow and steady wins the race. That means not bailing on one of your chief recruiting and retention measures just because times are tough right now. Keep your core benefits in place and focus instead on spurring greater innovation and customer service from your workforce.