Retirement Planning Encourages Employee Loyalty
March 6th, 2009 | by admin |Although 401(k)’s aren’t taken advantage of nearly to the extent they should, other retirement plans, particularly those offered by the public sector, have a magnetic effect on employee loyalty. More than lost wages, losing one’s retirement benefits is seen as one of many harsh penalties that encourages lifetime devotion to a profession even if it isn’t satisfying. Although private employers might run out of incentives to retain good workers due to budget constraints, a comparison of government benefits vs their private counterparts indicates that public sector employees enjoy considerable advantages in terms of job security and fringe benefits. A withdrawal to the private sector simply might not be feasible, especially for those in law enforcement. The tools of retirement planning can be a powerful inducement to remain where you are.
