Many employers have eliminated or reduced 401K matching programs to cope with leaner budgets in the recession. And 401Ks won’t necessarily be bouncing back when the economy rebounds, according to an article in Workforce.com.
Executives entering salary and compensation negotiations should understand that at the moment, many matching programs have been eliminated all together and some may never return, at least as we knew them, retirement and employee benefit experts told Workforce.
It’s more likely that 401K matching payment programs will align more closely with performance than a predetermined match rate, they said.
Many employers have started talking about reinstating their 401(k) matches, but are looking closely at whether they will bring them back at the same levels, said Rob Reiskytl, leader of Hewitt’s defined-contribution consulting practice.
“We are working with some organizations that aren’t just looking at the timing of when to reinstate, but also of exactly what to reinstate,” he said.
If you’re negotiating for salary, benefits and compensation be careful to press for what’s possible not demand something benefits experts are saying may be a luxury of the past.
(401K Retirement and Employee Benefits by mujitra (´･ω･) via Flickr, CC3.0)
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