A study by the TIAA-CREF Institute and Independent Sector found that while a majority of nonprofit workers enjoy their jobs, they are not confident in their ability to comfortably retire. The “Financial Security and Careers in the Nonprofit and Philanthropic Sector Survey” interviewed 1,000 employees in the nonprofit and philanthropic sector. While 59 percent were satisfied in their current position, 45 percent said that they were not comfortable in their ability to prepare financially for retirement.
Businesses across multiple industries need to ensure that their employees understand all options that are available for retirement and if any financial planning assistance is available. Working with human resources software companies can help in this process. Investing in HR software solutions can keep companies organized with their administrative work, ensuring that employees are properly educated in 401(k) planning.
The report also found that career advancement is a top concern for employees in the nonprofit sectors. Specifically, 90 percent said personal satisfaction is a main driver for their career decisions, but just 30 percent admitted that they are very or extremely satisfied with job advancement opportunities available.
“The survey indicates that while nonprofit employees are satisfied overall with their jobs, they have concerns about their ability to retire comfortably,” Paul Yakoboski, senior economist at the TIAA-CREF Institute, told the human resources blog, HR.BLR. “The results demonstrate the need for financial planning and advice to help these employees combine the best of both worlds: a fulfilling job and a secure financial future.”
With HRIS software, HR managers can devote the right amount of time to each employee, ensuring that he or she understands all available options for retirement. Additionally, HR systems can keep all policies up-to-date, which can help companies pick the best 401(k) options and keep team members educated on those options.