Employee benefits and retirement plan solutions Trends and Insights Trends in nonqualified deferred compensation plans

Trends in nonqualified deferred compensation plans

The key findings from this year’s study prove continued value and need for deferred comp plans.

Photo of a plan sponsor discussing trends in nonqualified deferred compensation plans with key employees.
4 min read |

Economic issues and taking care of key employees are top of mind for employers. Nearly 70% are concerned about inflation, with 52% concerned about a potential recession. Meanwhile, 76% of employers are worried about attracting key employees, with 60% concerned about losing them. The good news? Plan sponsors and participants agree nonqualified deferred compensation can help attract and retain top talent.

Those are just some of the insights from our latest deferred comp study.

Explore the findings.

Now in its 16th year, our annual deferred comp research can help you benchmark against your peers and gain valuable learnings.

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Key research insights

Employees looking for a change 
  • 75% of employees are considering changing jobs. 

  • 41% of employees are actively looking for a new job. 

Reasons for hiring challenges 
  • 74% of employers say it’s hard to find employees with the right skill sets. 

  • 54% of employees are leaving for better pay. 

  • 52% of potential employees are looking for remote work rather than in person work. 

  • 35% of employees are leaving for better benefits. 

Participants consider a deferred comp plan important when 
  • 61% - Deciding to take a new job 

  • 53% - Deciding to stay with a current employer  

  • 80% - Preparing for retirement  

Employers view on recruiting and retention 
  • 59% of employers view the plan as a valuable recruiting tool. 

  • 66% of employers view the plan as a valuable retention tool. 

Top reasons why plan sponsors offer deferred comp plans 
  • 89% of employers provide a competitive benefits package for key employees. 

  • 88% of employers help participants save for retirement above qualified plan limits. 

  • 82% of employers see it as a retention tool for key employees. 

  • 75% of employers help key employees manage current taxation. 

Hear how an employer uses a deferred comp plan to enhance its benefits plan for recruiting and retaining a skilled leadership team. 

What's next?

Talk to your financial professional about incorporating—or improving—a deferred comp plan in your benefits program.