Hostess Brands isn’t the first employer to dole out new employee benefits in wake of tax reform — but its offer may be the sweetest.
The bakery company — known for its Twinkies and Ding Dongs — said recently it will offer employees bonuses in the form of cash and 401(k) contributions, as well as a year’s supply of Hostess products.
The bonus — to be paid to Hostess’ 1,036 hourly employees — will consist of $750 in cash and $500 toward 401(k) contributions. Meanwhile, the free snacks will vary; Hostess says it will select a “product of the week” that it will give to each employee in a multi-pack.
“Adding the product piece was a fun way to bring all of our facilities together,” says Matt Hall, Hostess’ vice president of human resources. “We do not make everything in every plant, so having the opportunity to provide new and different products for folks to try seemed to be the right direction to go. We hope to continue building passion around our company.”
Hostess Brands joins other employers that have boosted 401(k) plan contributions and made other benefit enhancements in wake of tax reform, which slashed the corporate tax rate to 21% from 35%. Visa, Anthem and Aflac are among the companies that recently have enhanced their 401(k)s.
Hall says Hostess hopes its extra retirement plan contribution “encourages employees to participate in their 401(k)” and “get them involved in their long-term future.” The company’s 401(k) is available to every full-time employee.