Program - Work and Retiriment in Companies Today
Dave Alemian is a leading retirement expert and recognized authority whose expertise is shared via video columns, numerous journals and talk-radio. Formerly the host of “It’s About Money” Radio Show, Alemian has also produced and is featured in over 200 financial education videos. Mr. Alemian hails from the east coast, relocating to San Diego in the early 2000s. He lives with his wife and two pug dogs in a suburb on the beach in North San Diego – enjoying beach bootcamp, boating and spending time with his family.
There is a talent shortage of Key Employees who "make things happen" in businesses across the country. This is because of rising costs associated with hiring good employees, and a challenge in retaining them. The healthcare industry is a reliable reflection of all industries in the united states. During the last several years the American Medical Association (AMA) has conducted multiple studies on the financial preparedness of US physicians. All of these studies revealed that the top financial concern for all US physicians is providing a comfortable retirement for themselves and spouse or partner. The challenge for most people is the ability to maintain their lifestyle when they retire and the income stops.
Common retention strategies in use by business' today include debt reimbursement for student loans and flex time. The problem is that neither of these tie the employee to the company. The employee will work until the debt is paid off then go where they wanted to in the first place. The one thing that does tie an employee to the company is a defined benefit retirement.
The AMA studies mentioned found that 50% of physicians are "behind" in their retirement savings, and for 40% of them their retirement is their number one concern. The 401K program, begun in 1978 by Congress, was meant as an additional savings tool for people. Because the 401K is portable, when companies began using it exclusively for pension funding, both the companies and employees lost their mutual loyalty to each other. Currently, turnover occurs every 4.4 years on average, and turnover costs have skyrocketed to the point where it is 213% of an employee's salary to replace them. The best solution according to Mr. Alemian's research, is to return to a 25 year vesting period for retirement.
The cost of employee turnover is going to continue to rise. The top talent of any industry will stand in line to work for a company that solves their retirement fears.