Retaining Key Employees As Markets Recover
The Principal examines nonqualified deferred compensation plan satisfaction
August 5, 2009 (Des Moines, IA) — More than six out of 10 (64%) employees in deferred compensation plans say the plan is important to their decision to stay with their current employer. Nine out of 10 (92%) view the plan as important in reaching their retirement goals according to new research from the Principal Financial Group®.
A white paper from The Principal® analyzes the impact nonqualified deferred compensation plans have on employers and their key employees. The conclusions are based on an in-depth study of nonqualified deferred compensation plan sponsors and plan participants conducted in conjunction with Boston Research Group.
"As the economy begins to improve, retaining key employees is critical to the success of the business. These employees have worked harder with less and want to be recognized," said Gary Dorton, vice president of nonqualified benefits for the Principal Financial Group. "Our research shows employers and their employees are generally satisfied with their deferred compensation plans, but certain drivers can increase satisfaction and may contribute to employee loyalty."
The report, "Nonqualified Deferred Compensation: Understanding Plan Sponsor & Plan Participant Expectations," gives insight for employers regarding what drives benefit satisfaction. Specific participant plan services drivers include:
- Information regarding investment decisions
- Ease of finding summary plan benefit information
- Educational tools like retirement calculators
The white paper includes implications for plan sponsors as well as plan participants. The full report is available in the Principal Research Center, www.principal.com/nqresearch where The Principal® continuously tracks trends that affect employers and their employees.
About the Principal Financial Group
The Principal Financial Group® (The Principal ®) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $257.7 billion in assets under management and serves some 18.8 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.
Insurance products issued and plan administrative services provided by Principal Life Insurance Company. Securities offered through Princor® Financial Services Corporation, 800-247-1737, member SIPC. Principal Life and Princor are members of the Principal Financial Group, Des Moines, IA 50392