PLANSPONSOR - October/November 2021 - 19

PLAN BENCHMARKING | COVER STORY
Attract
Retain
A strong retirement plan is key in a competitive
employment environment
YOUR WORKPLACE retirement savings program can be an effective tool to recruit and retain
employees in a tight labor market-if you really think the offering through.
" You have to get out of the routine of saying to yourself, 'This is our static benefits package,' " says
Tom Ming, managing director of the Pensionmark Retirement Advisory Group in Bakersfield, California.
" The No. 1 step that plan sponsors need to take to have a competitive package is to be different. " The
savings program " needs to be customized for each employer, based on its workforce. Employers need to
sit down and think differently, and get to the root of their employees' benefit needs, " he says.
Willis Towers Watson's 2020 U.S. Defined Contribution (DC) Plan Sponsor Survey, released this
February, illustrates that a retirement plan plays a key role in employers' hiring competitiveness. Asked
to rate the importance of different defined contribution plan objectives/principles in the context of
their organization's total rewards strategy, 45% of sponsors ranked being market competitive as " very
important " over any other objective. Another 39% cited having an " attraction/retention tool " as a very
important objective of their DC plan.
For employers that want to enhance their savings program's competitiveness, five experts
suggested the following strategies:
m * Consider a non-matching contribution. Forty-three percent of responders to the survey
entioned above said they provide both matching and non-matching contributions, with the amounts
averaging 4.1% and 3.4%, respectively. That is a 7.5% average total contribution for these plans.
" We're seeing more employers consider shifting a portion of contributions to discretionary, nonmatching
contributions, " says Mark Smrecek, senior director, retirement at Willis Towers Watson
in Chicago. In an environment where many people feel like they barely get enough money in their
paycheck to pay for basic needs, he says, " you can see where a non-matching contribution becomes
a really valued benefit by employees. As they find that their paycheck is going in different directions-paying
for housing, paying off debt-the ability to get the employer match becomes more
difficult for employees. "
Lately, Alight Solutions has seen some leading-edge companies add a non-matching contribution
with a diversity and inclusion perspective in mind, says Rob Austin, head of research at Alight in
Art by Katherine Streeter
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PLANSPONSOR - October/November 2021

Table of Contents for the Digital Edition of PLANSPONSOR - October/November 2021

INSIGHTS
INDUSTRY ANALYSIS
RULES & REGULATIONS
UPFRONT
To Attract and Retain
2021 DC Plan Benchmarking Survey
Investment Appraisal
The Evergreen Discussion
Retirement, by Auto-Pilot
FIDUCIARY FORUM A Useful Gauge
INSIDE ANGLE ESG for Fiduciaries
PLAN PROFILE Picture of Health
PLANSPONSOR - October/November 2021 - Cover1
PLANSPONSOR - October/November 2021 - Cover2
PLANSPONSOR - October/November 2021 - 1
PLANSPONSOR - October/November 2021 - 2
PLANSPONSOR - October/November 2021 - 3
PLANSPONSOR - October/November 2021 - INSIGHTS
PLANSPONSOR - October/November 2021 - 5
PLANSPONSOR - October/November 2021 - INDUSTRY ANALYSIS
PLANSPONSOR - October/November 2021 - 7
PLANSPONSOR - October/November 2021 - RULES & REGULATIONS
PLANSPONSOR - October/November 2021 - 9
PLANSPONSOR - October/November 2021 - 10
PLANSPONSOR - October/November 2021 - 11
PLANSPONSOR - October/November 2021 - UPFRONT
PLANSPONSOR - October/November 2021 - 13
PLANSPONSOR - October/November 2021 - 14
PLANSPONSOR - October/November 2021 - 15
PLANSPONSOR - October/November 2021 - 16
PLANSPONSOR - October/November 2021 - 17
PLANSPONSOR - October/November 2021 - To Attract and Retain
PLANSPONSOR - October/November 2021 - 19
PLANSPONSOR - October/November 2021 - 20
PLANSPONSOR - October/November 2021 - 21
PLANSPONSOR - October/November 2021 - 2021 DC Plan Benchmarking Survey
PLANSPONSOR - October/November 2021 - 23
PLANSPONSOR - October/November 2021 - 24
PLANSPONSOR - October/November 2021 - 25
PLANSPONSOR - October/November 2021 - 26
PLANSPONSOR - October/November 2021 - 27
PLANSPONSOR - October/November 2021 - 28
PLANSPONSOR - October/November 2021 - 29
PLANSPONSOR - October/November 2021 - Investment Appraisal
PLANSPONSOR - October/November 2021 - 31
PLANSPONSOR - October/November 2021 - 32
PLANSPONSOR - October/November 2021 - 33
PLANSPONSOR - October/November 2021 - The Evergreen Discussion
PLANSPONSOR - October/November 2021 - 35
PLANSPONSOR - October/November 2021 - Retirement, by Auto-Pilot
PLANSPONSOR - October/November 2021 - 37
PLANSPONSOR - October/November 2021 - FIDUCIARY FORUM A Useful Gauge
PLANSPONSOR - October/November 2021 - INSIDE ANGLE ESG for Fiduciaries
PLANSPONSOR - October/November 2021 - PLAN PROFILE Picture of Health
PLANSPONSOR - October/November 2021 - Cover3
PLANSPONSOR - October/November 2021 - Cover4
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