Employers plan to cut more retirement perks amid recession

The number of employers offering, and planning to offer, retirement perks to new employees has fell in response to the recession, according to a recent survey by Hewitt Associates.

Instead of offering premium retirement features, including automatic enrollment and company matches, the survey found that employers are more focused on offering lower-cost strategies, such as automatic rebalancing and target-date funds.

Hewitt’s annual survey of about 150 mid- to large-sized employers revealed that half (51%) currently offer automatic enrollment, up from 44% in 2008.

Among the companies that don’t currently offer automatic enrollment, just 25% are likely to add it for new hires, down from 57% in 2008.

The top reason for not offering automatic enrollment is because of the high cost of the employer match. According to the survey, only 2% of employers have cut or temporarily suspended 401(k) company matches since the recession began, about 5% plan to do the same this year.

Depending on where our economy stands in the next 12 to 18 months, Hewitt predicts that about 10% of companies will also cut or suspend 401(k) matches.

Has the economy forced your business to cut back on employee retirement perks? What lower-cost strategies are you using instead?

Employers plan to cut more retirement perks amid recession

Benefits of hiring older workers

Whether it's from devastated 401(k) accounts, the rising cost of living or uncertainty about the future, more older workers are delaying retirement and some are even leaving retirement for a spot back in the workforce.

More than one-quarter (27 percent) of workers 45 and older were postponing retirement and two-thirds reported having more difficulty paying for essentials such as food, gas and medicine, according to a recent AARP survey.

Additionally, the number of older workers on full-time schedules nearly doubled from 1995 to 2007 and those working part-time increased 19 percent.

Human resources faces unique challenges as more older workers reenter the workplace -- communication across generations, teamwork between coworkers with different work styles, training managers how to work with employees who are much older or younger than they may be.

Still yet, the benefits of hiring older workers greatly outweigh the challenges. Older workers posses the workplace skills businesses need to succeed in today's economy, including:

• Experience. This group of workers understands how business works and what needs to be done in order to succeed, because they've lived it. Depending on the nature of the job, companies will save time and money on less training.
• Work ethic. Older workers in the workplace are more dependable and stay more task-focused than their younger counterparts. They are less distracted by cell phones, mp3 players and social networks, and concerned more with completing the task at hand. Older employees have also proven to be the most self-motivated in the workplace.
• Loyalty. These days, a young worker may have gone through three jobs by the time they turn 25, but that's not the case with senior employees. Older workers grew up during a time where people worked for only one or two companies during their lifetime, building a strong sense of loyalty.
• Pride. Senior employees take personal pride in a job well done. While younger workers may be more concerned with making it out of the office in time to meet friends, older workers are more likely to stick around past closing time to make sure the job is finished and the final product reflects quality work.
• Confidence. With all of their experience and training, older workers have a sense of confidence that younger workers still have yet to develop. Their confidence allows them to make decisions and share ideas that can help companies find ways to save money and run more efficiently.

Hiring older workers, with their unique skills and work styles, has the potential to improve productivity and save companies money during a time when it is needed the most. Tapping into the benefits of a mature workforce can help many businesses through these tough times and into a brighter future.

Benefits of hiring older workers

Online tool measures impact of retiring employees

With one quarter of the U.S. workforce nearing retirement age, conversations about a potential “Baby Boomer brain drain” have been heard across the HR world. Transferring corporate knowledge, talent shortages and phased retirement plans have all become growing issues for worried companies.

It’s estimated that by the end of this year, 17% of the Baby Boomers holding executive, administrative and managerial positions in the private sector are expected to have retired.

“The problem is, HR often doesn’t have the data to back up the belief that their companies will be affected as the baby boomers leave the workforce, experts say.”

To back up those beliefs, AARP created the Workforce Assessment Tool to help business owners gauge how much of an impact retiring employees will have on your business. The 80-question online tool is confidential, free to use, and takes about 30 minutes to complete.

After answering questions about the composition of your workforce, workplace practices and company benefits, the tool generates an individualized report. The report outlines how the aging workforce may affect your organization, recommends how to better accommodate workers of all ages, maps out your current employment practices and areas of improvement and creates an inventory of your workplace strengths that could enhance your employer brand.

Try out the Workforce Assessment Tool today and find out how much of an impact retiring employees may have on your business.

Online tool measures impact of retiring employees