The Importance of Regular Reviews and Revisions

You likely recognize the importance of seeing your doctor for an annual physical to keep your health in tip-top shape, or taking your car in for routine maintenance to keep it running like new.

But what about checking the health of your retirement plan? When is the last time you reviewed your retirement committee charter, investment policy statement (IPS) and other key retirement plan documents to monitor your plan’s compliance with specific standards of conduct and fiduciary responsibilities under the law?

Ideally, you should meet with your plan’s advisor at least once a year to evaluate the overall health of your retirement plan, which includes reviewing plan documents and operations to help ensure they are up to date with current guidance and regulations.

Always a Fiduciary: An Ongoing Responsibility

As a retirement plan fiduciary, adhering to plan documents is one of your most important roles. As a plan sponsor, you are a fiduciary to the plan. This means you have an ongoing and continuous responsibility to monitor the plan, service providers, investment offerings and operations. It’s your job to ensure they are being managed in the sole interest of your participants and their beneficiaries, and for the exclusive purpose of providing benefits and paying plan expenses.^[1] Not following these standards of conduct could subject you to personal liabilities. In addition, courts could take action against plan fiduciaries who breach their responsibilities. There has already been a plethora of lawsuits against plan fiduciaries in recent years.

Associate Supreme Court Justice, Stephen J. Breyer, famously submitted his verdict of the landmark Tibble v. Edison case, which set a precedent for fiduciary breach cases regarding the monitoring and selection of retirement plan investments. He stated that “… a trustee has a continuing duty — separate and apart from the duty to exercise prudence in selecting investments at the outset — to monitor, and remove imprudent, trust investments.” In short, monitoring and managing your retirement plan, its investments and operations are not responsibilities to be taken lightly.

Compliance Never Sleeps

Moreover, government and regulatory agencies such as the Department of Labor are continually monitoring plan fiduciaries to make sure they are following plan documents and procedures in accordance with the Employee Retirement Income Security Act (ERISA), the law that governs employer-sponsored retirement plans. Ultimately, this puts the onus of compliance and proper plan management on you. That said, it can be helpful to partner with your plan advisor to perform annual plan reviews for any common mistakes while managing your retirement plan and investments.

Addressing six common mistakes:

1. Poor investment oversight. Create an investment committee, led by a qualified financial professional and conduct periodic investment reviews and ongoing monitoring towards ensuring the plan’s investment options and fees are appropriate for all participants.

2. Failure to conduct periodic plan reviews. Regulations are constantly evolving and changing. Conducting a periodic plan review or benchmarking process, preferably with an independent third party, can help ensure that plan fees are reasonable and the plan is promoting positive outcomes for participants.

3. Failure to take timely action. Having knowledge of potential compliance, investment, plan fees or other significant issues, but failing to remedy them in a timely manner, can result in serious penalties or personal liability for plan fiduciaries.

4. Lack of an up-to-date Investment Policy Statement (IPS). Typically maintained by the retirement plan investment committee with help from the plan advisor, the IPS guidelines address how the plan’s investment options are selected, monitored and managed. The IPS should be periodically reviewed and updated to reflect the plan’s current goals. Many employers create an IPS but fail to follow or update it, putting them at risk for a breach of fiduciary duty.

5. Lack of a proactive participant education and communication plan. Three markers of retirement plan success are widespread participation, high savings rates and adequate investment diversification. An effective participant education and communication program can help increase deferrals and promote proper asset allocation for participants. It can also make a significant difference in your plan’s success.

6. Not following the terms of the plan document. It’s important to make sure employees are being enrolled as they become eligible, participants are receiving the correct employer matching contributions, and loans and distributions are being handled according to the policies and procedures in the plan documents.

If you identify operational or compliance errors during your annual review — don’t panic. The Internal Revenue Service (IRS) and Department of Labor (DOL) have programs to assist you in fixing mistakes. Your plan’s advisor and third-party administrator (TPA) can help with operational and compliance errors, too.

Keep in mind that once you’ve identified and corrected any plan errors, you should put processes in place to avoid future mistakes. In addition to conducting annual reviews, you should also perform regular maintenance to ensure your plan remains in good health — just like sticking to a healthy diet and exercise regimen prevent illness and performing routine tune-ups on your car keep it performing at its best.

^[1] U.S. Department of Labor. “Fiduciary Responsibilities.”

We recently received these election-related infographics courtesy of one of our valued research partners, Riverfront Investment Group, and thought you might find the content and visual display noteworthy:  2020 Election Infographics – RIV

Rest assured we have no interest in adding to any anxiety over the upcoming election.  The information is almost exclusively data driven and apolitical.

We hope you find them informative.

By choosing to offer your employees a 401(k) plan, you’re sending a powerful message — that you’re invested in their future and committed to helping them work towards financial security in their retirement.

As a business owner, you can also benefit from setting up a retirement savings plan. Not only does it provide you with the opportunity to save money for your own retirement, it also enables you to take advantage of tax savings thanks to special deductions and tax credits.

Here are four ways that a 401(k) can help you reduce taxes:

Personal tax benefits

Depending on the type of plan you offer, you and your employees can save for retirement in two ways:

• Pre-tax: Contributing pre-tax dollars to the 401(k) plan while working reduces your current taxable income and allows you to defer paying taxes until you withdraw the money at retirement.
• After-tax (Roth): If you opt for a plan with a Roth feature, you and your employees can save on an after-tax basis. While it doesn’t reduce your current tax bill, generally you can take the money out tax-free at retirement.[1] This includes your contributions, along with any investment growth.

If you are considered an employee of the business, you can take advantage of these pre- or after-tax savings, too. Moreover, having a 401(k) can provide additional savings opportunities for you.

For instance, if your income exceeds the Roth limits that would prohibit you from making contributions to a Roth Individual Retirement Account or taking deductions for traditional IRA contributions, a qualified plan could eliminate these issues because contributions to a pre-tax or Roth 401(k) do not have an income ceiling.

Keep in mind that participants can save up to $19,500 in a qualified retirement plan such as a 401(k) in 2020, per IRS limits. These contributions can be split between pre-tax and Roth deferrals — much higher than the $6,000 IRA contribution limits. In addition, employees age 50 and older can make additional catch-up contributions of $6,000 to a 401(k). These maximum limits exclude any employer matching or profit-sharing contributions.[2]

Tax-deductible employer contributions

Many employers choose to make retirement plan matching contributions, although it isn’t required. Offering an employer match can help you attract top talent, making your retirement plan more competitive and improving employee retention.

Plus, company contributions are tax-deductible as a business expense — up to certain limits, including both matching and non-elective contributions (those made directly by the employer regardless of whether or not employees contribute to the plan).

Business tax credits

A qualified retirement plan is an employee benefit. Therefore, any plan-related expenses you pay may be tax-deductible, including employer contributions and the administrative costs for running the plan. These could include fees paid to a Third Party Administrator (TPA), recordkeeper, auditor or other consultants you hire to help with your plan. All of these costs can potentially be written off.

In addition, the IRS has created tax credits to incentivize small business owners to offer 401(k) plans. Employers may claim a tax credit for some of the ordinary and necessary costs of starting a qualified plan.

For 2020 and beyond, employers may qualify for a credit of at least $500. Additional credits may be available, and employers may be able to take the lesser of:

• $250 for each non-highly-compensated employee (NHCE) eligible to participate
• $5,000

The credit is available for the first three plan years.[3]

Specific criteria apply, so talk to a tax professional to understand how the credit could impact your specific situation.

Increased tax savings with profit-sharing

You can further customize your 401(k) plan by adding a profit-sharing component. Profit-sharing plans offer similar tax benefits to a traditional 401(k), but they have higher contribution limits, which allow employers to enjoy additional tax savings.

With profit-sharing plans, employers contribute to employees’ retirement savings based on the company’s profitability within a given year. These plans offer employers a lot of flexibility — you can choose how much you want to contribute and even skip contributions in less-profitable years.

Profit-sharing plans provide an opportunity for you and your employees to save beyond the annual limits. For instance, employees can make salary deferrals up to $19,500 (the annual limit in 2020). However, maximum employer contributions are even higher: up to 100% of an employee’s annual salary or $57,000 per year ($63,000 including catch-up contributions for employees age 50 and older), whichever is higher. Note, combined employer and employee contributions may not exceed the $57,000 limit.

The tax laws can be favorable for business owners who offer a 401(k) or similar qualified retirement plan. It’s a great way to help you and your employees save for the future while getting tax benefits for doing so. Now is a good time to take a closer look at the options available to your business and consider how providing a competitive benefit can help attract and retain talent, save on taxes and positively impact your bottom line.

[1] A Roth 401(k) offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.

[2] “Retirement Topics – 401(k) and Profit-Sharing Plan Contribution Limits.” Internal Revenue Service, Jan 2020.

[3] “Summary of The Setting Every Community Up for Retirement Enhancement Act Of 2019 (The Secure Act).” Ways and Means. Mar 2020.

While we firmly believe life is meant to be lived, we also know that it’s important to have peace of mind in the event of an emergency. We’ve put together a detailed checklist to help you organize your life.

Download the Guide here: Participant Infographic – Getting Your Ducks in a Row Documents that Adults Need

As COVID-19 wears on, employers and employees alike continue to face a multitude of updates, changes, and challenges… and we know that uncertainty can lead to stress. While things are constantly changing, one thing remains the same – your status as a fiduciary. Your responsibility to act in the best interest of your employees can not take a sick day.

There are three fiduciary actions you can take during these turbulent times featured in our video above.

Remember, there is still time to adopt one or more features of the CARES Act to help your employees cope with unforeseen financial difficulties.

And, if you’re interested in implementing a comprehensive Financial Wellness program for your employees, we’ve got your solution. With all of the stresses out there, the last thing you want your employees worrying about is their finances.  Now, more than ever, providing them with access to their own personal Financial Coach can go a long way to stabilizing their footing and getting them on the right path forward.

To learn more, give us a call:  415.925.8700.

Scan the business news and you will likely find an article detailing the latest 401(k) litigation against a company accused of a fiduciary breach. The litigious trend started with corporate behemoths but has been trickling down to small and mid-size plans.

Adding to this, a survey found that 43% of company fiduciaries don’t actually think they are fiduciaries.[1]

“We see this regularly and stress that plan sponsors need to understand their fiduciary responsibility and all that it entails,” said Roger Levy, AIFA, an Analyst for the Centre for Fiduciary Excellence (CEFEX). CEFEX is an independent certification organization that works closely with industry experts to provide comprehensive assessment programs to improve the fiduciary practices of investment stewards, advisors, recordkeepers, administrators and support services firms.

“Even if a company outsources their fiduciary oversight for some aspects of their retirement plan, they still have certain obligations under the law,” says Levy. As a plan sponsor, you are still responsible for adhering to the Department of Labor’s Employee Retirement Income Security Act of 1974 (ERISA) guidelines, which govern and enforce the administration of 401(k) plans and their assets.

Here are five ways that plan sponsors can aim to lower fiduciary risk and stay in accordance with ERISA. If you have questions about the complexities of plan management, contact us for support.

Plan Committee, IPS and Governing Documents

Establishing a plan committee is the first step in guiding the fiduciary oversight process. The committee should be a reasonable size and include experienced members of finance, HR and operations. In turn, members will be responsible for numerous aspects of plan management, often in conjunction with your retirement plan advisor.

Next, the investment policy statement (IPS) is a roadmap for investment oversight because it determines the prudent processes and criteria for selecting and monitoring plan investments. When the plan committee meets, it uses the IPS to benchmark and review funds, fees and whether the investment strategy is meeting its stated goals and objectives, among other things.

Additional governing documents include the plan document, trust statement and charter statements that should be read, reviewed, understood and followed by all committee members.

Document the Investment Process

Documentation of process is critical in establishing fiduciary compliance. This includes recording minutes every time plan fiduciaries or investment committees meet to discuss investment changes or decisions. The documentation must show that due diligence has been taken in advance of a decision. “One of the biggest mistakes plan sponsors make is failing to properly document their investment decisions,” says Levy.

Conduct oversight meetings

Investment committees should have regularly scheduled meetings (either annually, biannually or quarterly, depending on the size of the plan) to monitor the performance, evaluate service provider agreements and ensure that costs and fees remain reasonable.

Be careful of the tempting “set it and forget it” mindset that leads to infrequent monitoring and lack of process, which can result in a failure of fiduciary duties.

Fund Choices

Offering numerous funds (i.e., “a fund for everyone”) does not reduce fiduciary risk. Rather, plan sponsors should conduct prudent due diligence to ensure that fund selection aligns with the IPS and corresponding investment strategies are appropriate.

The investment choices should not favor a particular asset class over another nor be overtly correlated to each other; however, the fund menu should provide a spectrum of risk and reward.

Underperforming funds should be monitored closely and replaced if necessary. Simply adding funds to counteract low performers increases fiduciary risk and can be interpreted as not fulfilling ERISA responsibilities.

Fee transparency and reasonableness

Since the 2012 Department of Labor rule, the transparency of retirement plan fees has significantly improved. Each year, plan sponsors are provided with a disclosure and information detailing their retirement plan’s fees.

As a plan sponsor, it is your responsibility to verify the accuracy and reasonableness of all plan fees and document the benchmarking process.

While plan sponsors bear significant responsibility and oversight for the company’s 401(k) plan, the burden can be eased by working closely with financial advisors and staying abreast of fiduciary obligations.

The result?

A win-win-win for the plan sponsor, advisor and participants!

[1] “Let’s be clear about fiduciary status.” J.P. Morgan. 10 Oct 2017. https://am.jpmorgan.com/us/institutional/library/lets-be-clear-about-fiduciary-status

Americans are worried about their finances, and it spills over into every aspect of their lives, including their work.  Compounding matters is the financial stress resulting from COVID-19.  Having a comprehensive financial wellness program for your employees is more important than ever.

Why Have a Financial Wellness Program for Your Employees?

A recent survey has found that 78% of American workers are living paycheck-to-paycheck.[1] It’s no wonder so many workers say they’re stressed about finances.

But what does this mean for you, their employer?

Employees stressed about their finances are far more likely to be late to work, absent, sick or distracted and unable to work effectively. According to the Chicago Business Journal, 43% of employees who are distracted by finances spend three or more hours a week at work thinking about financial matters or dealing with them. This equates to 150 hours per employee per year in lost productivity.[2] That’s a bundle of lost money that employers will never recover.

These numbers are causing employers to take notice, and many are establishing financial wellness programs to help.

5 Steps to Create a Comprehensive Financial Wellness Program

Employees generally need help in four key areas: budgeting, debt elimination, saving/retirement planning and asset protection. A comprehensive financial wellness program will address all of these areas while also addressing the invisible problem – poor attitudes about money.

The goal of a financial wellness program is to change employees’ behavior regarding their finances: a change that can drastically reduce their stress.

So… you’ve decided to offer a comprehensive financial wellness program to your employees. Where to start?

1. Determine the main problem you’re trying to solve. Is it to help your Baby Boomer employees confidently retire? Decrease the burden of student loan debt on Millennials and Gen-Xers? Is it to increase employee knowledge about financial planning? Reduce absenteeism? Or reduce healthcare costs? You’ll need to take into consideration both your needs and the needs of your employees. It might even be a good idea to conduct an anonymous survey and ask your employees what they would like to receive from a wellness program. Their answers may surprise you. When you do make your decision as to the type of program to implement, be sure to give their interests top priority.
2. Determine your employee demographics. Are there more Baby Boomers or Millennials? Your employee makeup will determine which financial topics you should emphasize.
3. Select a provider. Most financial wellness programs are provided by retirement plan recordkeeping platforms and are not comprehensive. In seeking a solution for your employees, consider a third-party provider that can provide unbiased education and advice to your employees about their finances while at the same time keeping their information confidential. You will probably bear the cost of the program, but the tide is beginning to shift towards being able to bill these services directly to the plan. In either case, always do your due diligence and select your provider with the same care you would when making any fiduciary decision.
4. Have a strong communication plan. Advertise the program well in advance. Tell your employees why you’re sponsoring the program and how it can help them. In addition, it may help to add some sort of incentive program in conjunction with wellness to maximize adoption rates.
5. Track results regularly after implementation. Results are important. Has absenteeism decreased? Has 401(k) participation increased? Those are easy metrics to measure. It is more difficult to determine attitudes about money and increased productivity. Those may take a little longer to realize.

Measuring Success

Your ROI? With a comprehensive financial wellness program in place, you are likely to:

• Improve employee engagement
• Lower health care costs
• Increase 401(k) participation
• Attract better employees
• Retain top talent

It’s a win-win for you and your employees. After all, unstressed employees are happier and happier employees are more productive.

You probably already have different types of wellness plans in your company – smoking cessation, nutrition, fitness. Adding a financial wellness plan to the mix is a natural progression and one that addresses one of the largest stressed employees face today.[3]

Creating an environment where employees feel empowered about their finances is a dialog… and we have the tools to help. Portico’s GoalPath Financial Wellness Program can help you and your employees chart the course for a better financial future. Contact us today to find out if GoalPath is right for your company.

[1] Friedman, Zack. “78% of Workers Live Paycheck to Paycheck.” Forbes Magazine. Jan. 2019.

[2] Lane, Shannon. “Employees’ money worries drain employers’ bottom line.” Chicago Business Journal, April 15, 2019.

[3] PwC’s 9th annual Employee Financial Wellness Survey, PwC US, 2020.

It’s never too early to talk about healthy money habits!

Creating a monthly budget is the cornerstone of good financial habits. Budgeting helps prioritize your spending as you pursue your financial goals.

This customizable budgeting worksheet can help you track your income and spending so you can focus on what’s most important. Simply modify the information below to fit your personal situation. Include the family. Creating a budget together allows you to work towards shared financial goals.

Download Here: Participant Infographic – Household Budgeting Worksheet

Offering a competitive benefits package, including a top-notch 401(k) plan, is essential for your company to recruit and retain premier talent.

Today’s workers highly value employer-sponsored retirement plans: 88% of them say that an employee-funded retirement plan is important to them.^[1] In addition, eight out of ten new hire candidates consider retirement savings programs offered by prospective employers a major factor in their job search decisions.^[2]

As a result, you should evaluate your 401(k) plan regularly — at least once a year — to ensure that it continues to be the right fit for your business and employees. For example, if you find during your review that you’re plan has any combination of high fees, poor investment performance or a lack of service and support, it may be time to consider changing providers. In addition, with many 401(k) providers offering new technology and features, now may be a good time to see if you’re offering everything that you can to your participants.

If you’re considering making a change, here are five tips to help you evaluate your current provider. If you decide to switch, we can help make the transition to your new one as smooth as possible:

#1 Before considering new 401(k) providers, carefully review your existing one.

Clearly identify why you’re unhappy with your current plan provider and services, then determine the improvements you’d like to see going forward. While your cons list for your existing provider may include “fees are too high,” don’t let that be the only reason for switching. Comparing plan providers based on fees alone doesn’t usually reflect the value you’re getting for what you’re paying.

Instead of focusing solely on fees, weigh your current provider — and any prospective ones in the running — based on factors such as:

• Services and design features
• Fees and structure
• Employer and employee customer service and support
• Investment options
• Fiduciary support

#2 Get familiar with the conversion process.

Let’s say you decide to change plan providers. After you choose one, what’s next? An experienced provider should do most of the heavy lifting when transitioning your plan to their platform — called a conversion. To start, you’ll need to review and complete paperwork for your current plan to share with your old and new providers.

You can also expect^[3]:

• Your new provider to review your previous plan
• Preparation and testing to confirm a clean data transfer between providers, including participant account balances and contribution rates
• Communication to employees about the new plan
• Updates to legal and recordkeeping documents to reflect plan changes
• A blackout period, when participants won’t be able to make changes to their retirement accounts
• Final statements issued from your former 401(k) provider
• Creation and activation of participants’ new accounts

#3 Take note of applicable fees.

Your current provider may charge you a termination and/or surrender fee when you switch to a new one. These fees can range from a few hundred to a few thousand dollars. Call your existing provider to determine their termination and/or surrender fees in advance to avoid any surprises. Your new provider may also charge you to establish the new plan.

#4 You don’t have to stick to your old plan design.

Plan sponsors often update their plan designs when switching providers. Most plan documents allow changes to be made at any time, but keep in mind that there may be amendment, regulatory or notice requirements you must meet before these changes become effective. Also, be aware of any timing concerns — for example, investment changes must be aligned with notice and blackout period requirements. Be sure to touch base with your old and new providers to address any potential issues.

#5 Communicate plan changes to your participants.

When you make changes to your 401(k), including switching providers, you’re legally required to provide participants with a blackout notice that includes information about:

• key dates — like the last date they can make contribution changes or rollover requests (since they won’t be able to make these changes during the blackout)
• how long the blackout will last
• restrictions on investment and allocation changes
• who to contact if they need additional information

You should also provide employees with information regarding any fund or plan design changes.

Need assistance?

It may take some time to review your current plan and switch to a new provider.  Moreover, it may be that with a bit of expert guidance, you can get all the features and benefits that you are seeking without having to transfer your plan at all. Either way, getting the support, and features and investment options that are best for your plan and participants will make evaluating your plan well worth it.

If you’re interested to learn how your plan stacks up, we can help.  Just give us a call and request your complimentary Retirement Plan Diagnostic™ today. Together, we’ll help you provide an innovative and competitive 401(k) offering that gives you a distinct edge when it comes to recruiting and retaining talented employees.

^[1] Transamerica Center for Retirement Studies. 17th Annual Transamerica Retirement Survey. “A Compendium of Findings About American Workers.” December 2016.

^[2] Transamerica Center for Retirement Studies. 19th Annual Transamerica Retirement Survey. “Employers: The Retirement Security Challenge.” October 2019.

^[3] Human Interest blog. “How to Change Your 401(k) Provider.” April 2017.

A good total rewards program helps you attract and retain the best possible talent for your organization. Add a great workplace culture and environment and you could be on your way to becoming an employer of choice among job-seekers.

What is a total rewards program?

A total rewards program is adopted by a company that provides benefits for its employees including:

1. Compensation—base pay, overtime, bonuses
2. Work/life balance—flexible scheduling, remote work opportunities
3. Benefits—health, life, dental and vision insurance, retirement plan, and voluntary benefits such as wellness
4. Recognition—feedback regarding performance and areas needing improvement, employee recognition programs
5. Growth and development—performance development planning, career paths, internal and external training, tuition reimbursement

However, the playing field has changed with the COVID-19 pandemic.

We’ve gone from record employment to record unemployment. That should make it easier to recruit top talent, right? It might—but only if your benefits are up to the challenge.

First, confirm that your pay and benefits are competitive. Compensation is the first step in preparing a comprehensive total rewards program; however, it is not the whole picture when it comes to winning those all-star candidates.

According to Deloitte’s 2019 Global Human Capital Trends survey, perks and pay aren’t what matter most to many employees—it’s personalized rewards that help meet their needs. Furthermore, only 11% of companies in Deloitte’s survey felt their rewards strategy was highly aligned with their organization’s goals.[1]

What does this mean for you? You might have some gaps to fill between the components of your total rewards program and employee needs. And since the survey was conducted in 2019 before COVID-19 appeared, your future employees’, and thus applicants’, needs are evolving.

What are the key benefits to consider?

Here are five important benefits you might want to include in your total rewards program during this work from home (WFH) new normal:[2]

1. Comprehensive healthcare. Your applicant needs to know they will be covered if they become ill. Without this type of coverage, they could face financial hardship in covering expenses. In addition, short and long-term disability benefits could kick in if the illness persists.
2. Paid sick leave. According to the Bureau of Labor Statistics, employees in private industry had an average of 7 days of sick leave for 1 year of service in 2018.[3] Given recent events, this may not be enough because, with the new coronavirus, recovery often takes significantly longer than 7 days. Seven days, and only after 1 year of service, may not be adequate for your new hire.
3. Remote work. WFH has been encouraged—even required—because of social distancing and shelter-in-place policies to reduce the spread of COVID-19. What is your applicant’s attitude toward working alone?
4. Mental health assistance. WFH may be beneficial in many ways, but along with the accompanying isolation, it can be mentally exhausting. An Employee Assistance Program can help to alleviate the stress and distress caused by WFH isolation.
5. Financial wellness programs. Financial wellness programs seek to help employees with their #1 stressor – finances. The program can help them prepare for unexpected emergencies, student loan debt, future college savings, and/or retirement. With the pandemic, financial wellness has become even more important for employees facing additional challenges such as higher medical bills or the possibility of losing a job. Applicants and new hires may find it reassuring that such a program exists should they need it.

Does your total rewards program contain these benefits?

If there are opportunities for improvement, work with your HR and benefits teams to discuss ways to adjust benefits within the program. It will take some planning, but it could be worth the effort if it means being the employer of choice for top talent. In considering changes:

• Take a long perspective.
• Be consistent and fair.
• Adapt your total reward policies to your industry.
• Don’t forget your current employees! Communicate any and all enhancements to the program to your current and future employees.

Top job seekers are not only looking for a good salary but also excellent benefits. To recruit the best, you have to be the best, and part of that is having an outstanding total rewards program.

To learn how your retirement plan compares to other similar firms, contact us to discuss a benchmarking report.

[1] Deloitte Insights, “Employee Rewards: What Do Employees Value Most?” 2019.

[2] Kathryn Mayer, Human Resource Executive, “8 benefits employers should zero in on during the COVID-19 pandemic,” March 24, 2020.

[3] U.S. Bureau of Labor Statistics. “Private industry workers with sick leave benefits received 8 days per year at 20 years of service,” March 8, 2019.