The recent volatility in the stock markets has once again shifted employees’ focus to retirement savings plans. While saving for the future is important, employees are questioning which options are the most beneficial. The 2011 Compensation Data Banking & Finance survey results indicate that 78.6 percent of employees are enrolled in a defined contribution plan, compared to 2010 where that number was 75.6. A little more than 1 percent of banking and finance employers surveyed reported offering a defined benefit plan only, almost 63 percent offer a defined contribution plan only and 35.8 percent offer both.
With the costs of medical insurance regularly increasing, banking and finance organizations are looking to other means in order to control costs. According to the 2011 Compensation Data Banking & Finance survey results, the most common of those options is coordination of benefits at almost 85 percent. That number is up slightly from 83.3 percent in 2010.
Technology and the economy have changed the recruiting landscape for the banking and finance industry. Based on the 2011 Compensation Data Banking & Finance survey results, more organizations are using cash options as a recruitment tactic in the midst of a struggling economy. From 2009 to 2011, organizations offering a bonus based on length of employment increased from 12.8 percent to 17.3 percent.