What per cent of companies pay all of annual 401 contibution at year end?
I think it is unusual. Most companies pay it with each paycheck during year. (like IBM was doing). Does someone know the percent of companies that do it the way IBM has chosen to go.
I think this is very bad because it is unusual and makes the employees who actually create success for the company very unhappy. You would think IBM would be looking for ways to increase employee satisfaction. This move seems dumb.
I am still bothered by the decision to pay all the 401 contribution year end. It doesn't save that much and is a perceived hit to employees. Shareholders, employees, customers, and the public all have to share in the company output if a company is to grow and thrive.
One consequence of one payment in mid-December each year is that if an employee quits before then he loses the matching for that year. Another change will be a savings to IBM from the use of cash during the year until 12/15 -- that's a step back for employees as the yield to them will go down.
It doesn't look dumb to me. If I were an IBM'er I would not like it. You have to assume that the IBM BOD would not have approved it unless the supporting research made sense to them.
I'm sure if I were an IBM'er that the change per se would not be enough to make me jump ship.