|[December 06, 2012]
Recruiting and Retaining Focus Increasing in Post-Crisis Economy
DES MOINES, Iowa --(Business Wire)--
More employers say recruitment and retention are among the top reasons
for offering nonqualified deferred compensation plans to their key
employees. This according to new
findings from a study of employers and their key employees conducted
by Boston Research Group on behalf of the
Principal Financial Group®.
The vast majority of plan sponsors (91 percent) say nonqualified
deferred compensation plans are important to provide a competitive
package for recruiting employees, a 7 percentage point increase from
2011. Eighty-six percent of plan sponsors say these plans are important
as a retention tool, up 8 percentage points from 2011. Key employees,
those identified as most critical to the business, confirm nonqualified
plans factor into employment decisions:
69 percent say these plans are important when making a decision to
take a new job.
61 percent report the plans are important in their decision to stay
with a current employer.
"Employers and employees alike were shaken by the economic crisis
compounded by the gradual recovery and continued market volatility,"
says Gary Dorton, vice president of nonqualified benefits for The
Pincipal®. "Employers recognize that helping employees
bolster their retirement savings also makes good business sense in
today's competitive marketplace to secure top talent."
The number of participating employees contributing $25,000 or more in
nonqualified deferred compensation plans has steadily increased over the
last three years, now at 44 percent in 2012. Participants also plan to
save more in these plans, with one-in-three (35 percent) planning to
increase their contributions in the plan over the next year. Other
actions by employees surveyed:
More than three-fourths (78 percent) report reviewing their investment
allocation quarterly or more frequently.
Just over half (53 percent) sought advice from a financial
professional, yet 59 percent do not have a written plan that includes
goals and sources of retirement income.
Nearly 9 in 10 key employees say nonqualified deferred compensation
plans are important in reaching retirement goals. According to Dorton,
"A growing number of employers are more worried than ever before if
their key employees will be adequately prepared for retirement, which is
why these plans are shifting toward a retirement focus. Key employees
use them as an additional way to reach their retirement goals, and
employers see them as a valuable part of a comprehensive benefits
More insights from the 2012 study are available at www.principal.com/nqresearch.
For more news and insights from The Principal, connect with us on
Twitter (News - Alert) at http://twitter.com/ThePrincipal.
About the Principal Financial Group
The Principal Financial
Group® (The Principal ®)1 is a global
investment management leader offering retirement services, insurance
solutions and asset management. The Principal offers businesses,
individuals and institutional clients a wide range of financial products
and services through its diverse family of companies. Founded in 1879
and a member of the FORTUNE 500®, the Principal Financial
Group has $392.2 billion in assets under management2 and
serves some 18.3 million customers worldwide from offices in Asia,
Australia, Europe, Latin America and the United States. Principal
Financial Group, Inc. is traded on the New York Stock Exchange under the
ticker symbol PFG. For more information, visit www.principal.com.
1 "The Principal Financial Group" and "The Principal" are
registered service marks of Principal Financial Services, Inc., a member
of the Principal Financial Group.
2 As of September 30,
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