Plan Sponsors are increasingly looking at nonqualified plans and an employer contribution with a larger focus on total rewards to attract top talent.
A nonqualified plan appeals to highly compensated employees because many can’t save as much as they want to in their employer’s qualified plan. Nonqualified plans appeal to many employers because they can help attract pivotal staff and motivate them to stay.
Blade Zych, Retirement Plan Consultant at OneDigital, discusses with NAPA Net Magazine the shift he has seen with employers beginning to put a focus on total rewards to address the retirement-savings gap for highly compensated employees.
I like to refer to a nonqualified plan as being like a Swiss army knife. Employers increasingly realize that they can use it for other things beyond retirement savings, like a sign-on bonus with (vesting) strings attached, or a performance bonus.
- Blade Zych, Retirement Plan Consultant, OneDigital Florida
Blade shares that the pandemic allowed for a change in how we as individuals work. Many employers are now competing for the same remote-work talent. These employers are leveraging their plans as a bonus to entice highly sought-after talent.
Read the full Napa Net magazine article here.
Want to learn more about Nonqualified Deferred Compensation Plans? Check out this recent article: Maximizing the Effectiveness of NQDC Plans for Better Retirement Readiness
Investment advice offered through OneDigital Investment Advisors LLC., an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.