RMI 3501 Lecture Notes - Lecture 1: Overconsumption, Profit Margin, Harvard Business Review
22 Oct 2017
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Document Summary
Beginning at the end: designing benefits that work. A useful framework for benefit designs that produce good outcomes consists of the four b"s: Stretching the match encourages employees to save at higher levels in order to get the full employer match without requiring an additional outlay by the company. A helpful approach to design is to have desired behaviors drive benefit structure decisions and let the budget drive benefit level decisions. This creates alignment and helps ensure that the benefit programs ultimately tie to desired behaviors. Esops (employee stock ownership plans) are qualified retirement plans that are invested primarily in the stock of the sponsoring company. As the company experiences success and the stock price increases, so does the balance of the participants" retirement accounts. This provides a clear link between the actions of employees and their own personal financial situation. Retaining employees, generational differences, recruiting employees, communicating value.
