UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: jjm1970 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 775841  
Subject: Re: 401-k- different approach (OT) Date: 2/21/2001 12:25 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
On a $50,000 gross salary, with 3% matching, the "cost savings" would be a maximum of around $5000. That probably won't even pay the cost of recruiting the replacement employee, to say nothing about training costs. Seems penny-wise and pound-foolish to me.

It's $5000 more than the company would have had if the employee left anyway without a vesting schedule.

I doubt anyone is leaving their job because their matching funds aren't vested yet. There are other reasons for job changes far more compelling.

Once they do leave, that $5k does offset some of the costs for recruiting, hiring, and training the replacement. Add to that the fact that the new employee probably doesn't qualify for the 401(k) for at least a year and you have a little more to help offset the costs.

Your right that it costs more than that will provide, all the more reason to make it less attractive for your employees to leave.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next


Kiddie Card Board
Should kids have their own credit card?
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Markel Corp.

Markel's Silver Year
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.