How Important Are RRSPs For Candidates?
Make me a match
Retirement seems to be top of mind for today’s employees. Employers would be wise to take note and offer the best matching or other benefits to attract the best and brightest.
In a market still rife with volatility and job seekers who will stop and think before jumping to the next job, employers would be wise to give consideration to the types of benefits they provide. Why? Job seekers will scrutinize and compare the offers they are getting, not necessarily based on compensation (as that is often comparable between companies) but based on the benefits they will receive.
It’s important to consider that attracting and retaining strong candidates will rest on the extra benefits you provide as an employer. The right benefits have been proven to improve productivity because employees are more effective when they feel security both for themselves and their families.
And among the top five benefits offered by Canadian employers is pension or RRSP contribution matching. Essentially, because the costs of offering older style defined benefit (DB) plans have become prohibitive, more companies have begun offering defined contribution (DC) and/or group RRSP-type plans. Providing a match is not only an incentive for current employees to save for retirement but also an important benefit that attracts and retains top talent.
Some of the other top benefits being offered include extended health benefits, individual performance related bonuses, training and/or certification, and more than 10 days of vacation.
The benefits that become more or less popular among the workforce seem to be driven by demographics. As younger millennials enter the workforce, flexibility arrangements, working from home, time off and other “softer” benefits are sought after. But for the larger part of the population that is getting older (yet still has a foot in the workforce), things like healthcare and retirement benefits will certainly remain at the top of their list. Overall, companies not keeping track of their competitors’ retirement and other benefit plans will likely lose out on the best and brightest of the workforce.