In a recent video from 401kTV, we heard from Colleen Anderson, an Analyst on the Chick-Fil-A, Inc. Retirements Benefit Team. In her interview with 401kTV, they discussed the importance of company contributions and early eligibility as a critical tool for the health of their 401(k) plan and the retirement planning of participants. In an industry with such high turnover, Chick Fil A takes advantage of a great package that lets participants start contributing right away along with a very competitive employer match.
Something to take away from this interview is the importance of employee participation in the plan and how to keep it up. Some companies with a non-competitive plan with poor benefits might not be able to attract top talent, and employee trying to save for their retirement might not be motivated to contribute as much as they can. Using these kinds of practices is a great example to make sure that participants are encouraged to keep saving and preparing for their retirement, even if it doesn’t seem so important now. Both plan sponsors and participants will be able to benefit from healthy contributions the plan every year in more ways than one.