For employers in Alaska, in addition to providing medical and voluntary benefits, it is equally important to provide financial benefits such as a 401k or IRA and benefits that contribute to employee quality of life such as a flexible schedules and lifestyle. These benefits provide tremendous value to your employees whether they work for Alaska's Chenega or Nana Regional.
A 401k retirement plan is a crucial component of an employee’s benefits package in the state of Alaska. A 401k retirement plan allows employees to contribute to their retirement through pre-tax payroll deductions. Employers can also make matching contributions. Another similar contribution is an IRA, which is opened solely by an individual through a broker or bank.
It is important to note the difference between a defined benefit plan like a pension vs. a 401k (defined contribution plan). A defined benefit plan provides a specified payment amount in retirement, while a defined contribution plan like a 401k allows both employees and employers to contribute and invest funds to save for retirement. Utilization of defined benefit plans, like pensions, have decreased significantly the past two decades and are primarily only used by governments today.
75% of Alaska employers offer a 401k as a part of their benefits package. This is an attractive offering in your employee benefits package where 83% of employees take advantage of the benefit when offered.
Employees look forward to a bonus or a display of appreciation for their hard work. 47% of Alaska employers offer some kind of “non-production” bonus. These bonuses include end-of-year bonuses, holiday bonuses, employee referrals, and others. The structure and amounts of these bonuses can vary from employee to employee and by role. Having clearly defined metrics are critical with consistent communication is important.
It is essential for employers to provide a range of financial incentives and benefits to attract and retain valuable employees and top talent. While some provide more value than others, it’s important to consider all options. Whether you attended the University of Alaska or somewhere closer to your home, 5% of Alaskaemployers offer student loan assistance. 57% of Alaska employers provide access to wellness programs, 30% offer access to financial planning, and 67% offer access to EAP programs.
Catering to each employee's individual set of needs should be a top priority for you as the employer. Remember that the benefits needed between a recent college grad and someone who’s 10 years into their career with kids will be vastly different. These two examples need different flexibility and workspace benefits. With this being said:
To get a better idea of how your company’s financial and quality-of-life benefits stack up against others in Alaska access your free Mployer Insights report. You can share with your employees how competitive your plan is against others which plays a large role in retaining and hiring new talent.
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