Even with the economy on the road to recovery, saving for the future is still vital. Retirement savings plans are one way to prepare for the future. The 2010 Compensation Data Hospitality survey results indicate that 40.8 percent of employees are enrolled in a defined contribution plan. Ninety five percent of organizations surveyed report offering a retirement plan of some sort with 2.3 percent offering a defined benefit plan only, 79 percent offering a defined contribution plan only and 14.6 percent offering both.
“Fifty four percent of employers expect between 25 and 75 percent of their staff to contribute to a retirement plan in 2011 according to an informal poll conducted on the our website earlier this year,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefit survey data provider. “Another 18.6 percent anticipate more than 75 percent of their staff will utilize retirement plans this year.”
The most common plans for hospitality organizations according to the 2010 survey are 401(k) with employer contribution and 401(k) with employee savings only. Eighty six percent of organizations offer a 401(k) plan with employer contributions while 18 percent offer 401(k) plans with employee savings only. The way organizations contribute to employee retirement plans varies with 74.9 percent of organizations utilizing a standard match formula in 2010. Ten percent of organizations contributed a fixed percent of the employee’s pay.
All 401(k), 403(b) and 457(b) and (f) plans were reported as fully vested within 6 years with 13.8 percent vested immediately. Beyond that, 11.6 percent of plans were vested after the first full year of employment while 38.1 percent were vested after 5 full years of employment.
About the Survey
Compensation Data 2010 Hospitality contains data on over 100 industry-specific job titles and more than 300 benchmark titles ranging from entry-level to top executives. Data is collected annually from hospitality employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of March 1, 2010.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about the compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.