More employers say recruitment and retention are among the top reasons for offering nonqualified deferred compensation plans to their key employees. This according to new findings from a study of employers and their key employees conducted by Boston Research Group on behalf of the Principal Financial Group ®. The vast majority of plan sponsors (91 percent) say nonqualified deferred compensation plans are important to provide a competitive package for recruiting employees, a 7 percentage point increase from 2011. Eighty-six percent of plan sponsors say these plans are important as a retention tool, up 8 percentage points from 2011. Key employees, those identified as most critical to the business, confirm nonqualified plans factor into employment decisions:
- 69 percent say these plans are important when making a decision to take a new job.
- 61 percent report the plans are important in their decision to stay with a current employer.
- More than three-fourths (78 percent) report reviewing their investment allocation quarterly or more frequently.
- Just over half (53 percent) sought advice from a financial professional, yet 59 percent do not have a written plan that includes goals and sources of retirement income.