Reported in early march by The Wall Street Journal the Obama Administration’s 2010 budget requires businesses two years and older with more than 10 employees to automatically enroll them in retirement savings plans. Leading associations for businesses affected by the mandate, the National Federal of Independent Businesses (http://www.nfib.com/) and the National Small Business Association (http://www.nsba.biz/), have expressed interest in the financial and risk consequences of the proposal.
"Although the costs and details are under debate, there is almost universal agreement that small businesses will become more involved in their employees’ retirement preparation and planning,”. “Experience tells us that whether by government mandate or voluntary participation, small businesses that deepen their commitment to employees’ long-term financial well-being will gain loyalty and competitive advantage.”
“Employers that Maintain Benefits Through Tough Times Will Gain Loyalty,” an article in the Credit Union Times (http://www.cutimes.com/) cites remarks by Dallas Salisbury, president of the Employee Benefits Research Institute (http://www.ebri.org/).
The entity that can maintain its benefits through this process is going to be in the strongest position in terms of retaining employees and adding to the workforce. If … it worked its way through it and honored all its commitments, it will have earned loyalty … When times are tough is when you can build your strongest bonds with your workers. Don’t be shy about communicating to your employees that you’re doing this as a matter of conscious decision making. It may squeeze earnings a little, but it is important.
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