I haven’t had the opportunity to speak with Michael J. Fox, but I believe that he’d agree with John Lowell. According to the latest JOLTS release, there are approximately 10.4 million job openings in the US at the end of August 2021. US companies are clearly having a challenging time hiring and retaining their employees. Wage growth, which had been stagnant for decades, is finally providing some real growth, but wages alone don’t seem to be accomplishing the objective of “securing” new employees.
I referenced John Lowell above. John is an Atlanta-based actuary and partner with October Three Consulting LLC. He has more than 35 years of experience consulting on corporate retirement plans. His recent article in Benefits Pro is spot on! John has put his finger on three key areas of focus for corporate HR professionals, including:
- Recruiting and retention
- Diversity, Equity, and Inclusion (DEI)
- Guaranteed lifetime income for employees who fear outliving their savings
He further states that the most important of these from an employee’s standpoint may just be #3, as a retirement industry providing access to only DC plans is fraught with danger and disappointment. John understands that corporate America has pretty much put defined benefits in their rearview mirrors, but does that decision make sense in today’s environment? Both John and I think not! Anyone who reads this blog on a regular basis knows that I am a staunch supporter of DB plans, as asking untrained individuals to fund, manage, and then disburse a “retirement benefit” through a DC plan is an exercise in futility for many.
I hope that you’ll take the time (3-4 minutes) to read John’s article. His years of experience are shining through his words, which HR departments and corporate leaders would be wise to heed. Thanks, John!