SOURCE: ADP, LLC

ADP, LLC

June 16, 2015 09:00 ET

Simplified Retirement Savings Process a Key to Talent Acquisition and Retention, Yet Only Half of Today's Employers Offer Retirement Savings Plans

ROSELAND, NJ--(Marketwired - Jun 16, 2015) - The second annual study on retirement savings from the ADP Research Institute® shows that there is general agreement among both employers and employees on the importance of employer-offered retirement plans in acquiring and retaining top talent. Among employers offering a 401(k) or similar plan, almost 90 percent say it is important for attracting and retaining talent. Nearly 80 percent of employees view benefits like a retirement plan as a key consideration in accepting a new position. However, the research also shows that only about half of all companies offer them.

The study, How Employers Can Extend Coverage and Simplify the Retirement Readiness Process, examines the retirement savings rates of approximately 10 million employees between the ages of 20 and 69, with total compensation of $20,000 and up from about 161,000 organizations. It also tracked employer and employee attitudes around the importance of retirement benefits in talent acquisition and retention.

"The determination of which companies offer retirement plans is mostly a function of size, with over 90 percent of companies with 500 or more employees offering plans, while only one-third of companies under 20 employees do," said Ahu Yildirmaz, vice president and head of the ADP Research Institute. "Industry also matters. For instance, two-thirds of manufacturers offer retirement plans while less than one-quarter of leisure and hospitality companies do."

While the availability of defined contribution retirement plans is pervasive among large companies, many of the traditional barriers that have kept small companies from offering plans have become much more manageable. Typically, cost and administrative complexity have kept many smaller companies from offering retirement benefits. However, there are many service providers who now offer low cost, easy to manage retirement solutions designed for smaller businesses.

"The retirement savings crisis in the U.S. is well-documented. Employees are struggling to accumulate sufficient savings for a secure retirement. Unlike prior generations, they are no longer able to rely on private pensions, home valuations or Social Security," said Joe DeSilva, senior divisional vice president at ADP Retirement Services. "Employers who simplify the retirement savings process by including a retirement plan in their benefit offerings can develop a significant edge when it comes to building a better workforce."

About the ADP Research Institute®
The ADP Research Institute is a specialized group within ADP that provides insights to leaders in both the private and public sectors around issues of human capital management, employment trends and workforce strategy. For more information about the ADP Research Institute, visit: www.adp.com/research.

About ADP
Employers around the world rely on ADP® (NASDAQ: ADP) for cloud-based solutions and services to help manage their most important asset -- their people. From human resources and payroll to talent management to benefits administration, ADP brings unmatched depth and expertise in helping clients build a better workforce. A pioneer in Human Capital Management (HCM) and business process outsourcing, ADP serves more than 625,000 clients in more than 100 countries. ADP.com.

The ADP logo, ADP and ADP Research Institute are registered trademarks of ADP, LLC. All other marks are the property of their respective owners. Copyright © 2015 ADP, LLC.

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