After some 80% of employers told Hewitt earlier this year that you planned to this year restore reduced or frozen 401(k) matches, Hewitt’s Byron Beebe recently ratted you out to Business Insurance: Only about one-third have actually followed through with reinstatement.
So, what gives? Basically, the recession has made employers gun-shy, David Wray, president of the Profit Sharing/401k Council of America, told BI.
"It’s the lack of confidence in the future. Companies don’t like to make commitments to their employees and withdraw them. It’s not good for the morale of the workforce," Wray said.
Fair enough. But don’t you think employees will feel just as uneasy if another six months to a year goes by, and they still haven’t gotten their match back? Just sayin’.
What do you think? Did your company reduce or freeze its 401(k) match due to the recession? If so, have you reinstated it yet? Should employers be concerned about the message it sends to employees if companies are slow to reinstate the match? Share your thoughts in the comments.
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