Dive Brief:
- Accounting firm KPMG will no longer match employees' 401(k) contributions and instead will make automatic contributions equal to 6-8% of a worker's pay, KPMG US CEO Paul Knopp recently announced on LinkedIn.
- Knopp said the plan institutes "market-leading flexibility," as it ensures all employees receive firm-funded 401(k) contributions by nixing the requirement to contribute their own money.
- The announcement was accompanied by several other updates, including a reduction in healthcare premiums, a more robust parental leave program and an expanded employee recognition program.
Dive Insight:
Employers — particularly large, visible employers — are showing more interest in employees' financial health. Retirement-focused benefits have played a key part in this effort, especially as reports continually flag employees' struggles to save.
This summer, Chipotle, Chobani, Prudential Financial, Verizon and a number of other household names joined an initiative spearheaded by Just Capital and Paypal designed to elevate the importance of worker financial well-being among executives and investors. The companies pledged to examine the financial vulnerabilities of their workers and identify ways to help their fiscal well-being in the long term.
Outside the cohort, employers appear to have similar concerns. Last year, Bank of America found that nearly two-thirds of employers said they feel "extremely" responsible for workers' finances.
