A new study shows 72 percent of 401(k) plans offered target-date funds in their investment line-up at the end of 2011. That number is compared with 70 percent at the end of the year in 2010 and 57 percent at the end of 2006. This study was jointly done this past December by the Employee Benefit Research Institute and the Investment Company Institute.  But experts say the adoption rate with participants has moved at a much slower pace. And research shows at the end of 2011, only 13 percent of the assets in the EBRI/ICI 401(k) database were invested into target-date funds. That number was up from 11 percent in 2010 and 5 percent from back in 2006. Also, 39 percent of 401(k) participants held target-date funds at the end of 2011—as compared with 36 percent in 2010 and 19 percent from 2006. The study shows when it comes to new or recent hires, target-date funds fared better. With regard to this, 51 percent of account balances of recently hired employees in their 20’s were invested in balanced f ...

Annual reviews should be the end result of a year’s worth of coaching and performance feedback. Annual reviews are one of the top ways to lose an employee. Avoid these mistakes to help turn annual reviews from potential pitfalls into a celebration of work effort. Don’t have any surprises at annual reviews Springing unexpected negative feedback on an employee during an annual review, will normally be perceived by the employee as the revealing of a year-long lie. If an employee is not receiving feedback during the year, they usually presume their work is at least adequate. A supervisor that is disappointed in the work of an employee, yet waits until the annual review to reveal the disappointment, is creating a negative bomb to deal with. Employees should be made aware of how their work is holding up during the course of the year. It works to the benefit of both the employee and the employer. If the poor work is documented, and remains poor, the company is compiling documentation to use in support ...

According to recently released, over 75% of people have more than “little financial stress.” The Personal Finance Employee Education Foundation recently updated their research on the stress level people are feeling. Their previous figures were from 2004, which was before the recent recession. At that time, less than 60% of people had more than “little financial stress.”  Representatives from the PFEEF recommend employee-based programs to help employees face and address their financial stresses. As a business owner, many times workplace stress is only the tip of the iceberg. Most managers understand that stress at home, especially financial stress, can follow and employee to work and affect how they perform and how they interact with co-workers. Consider having a program through HR where employees can help get an accurate view of their financial situation and to pursue a plan to address any areas of concern. For some employees, debt is the real killer. For others, it may be more ...

Determining which payroll deductions to take out varies based on regulations and the final employee pay. Even if you have a solid policy on what gets deducted, the non-exempt employee can’t go below the minimum wage level in a pay period. Deductions for the benefit or convenience of the company are usually not allowed, per the Fair labor Standards Act (FLSA). For example: Uniforms, tools, damage, shortages, meals and lodging, fuel…and the list goes on. Deductions from pay is a never-ending issue for employers. Federal law on deductions from pay often hinges on whether a certain deduction can reduce an employee’s wages below the minimum wage or not. The rules discussed in this article apply only to nonexempt employees who are covered by minimum wage requirements. In general, deductions from pay should be made only where required by law or authorized in writing by the employee. The Fair Labor Standards Act (FLSA) does not allow items which are considered to be primarily for the benefit or ...

A recent report by the Hay Group predicts the U.S. economy will grow 2.1 percent in 2013. As a result, U.S. salaries will rise only 2.9 percent. This is one of the lowest levels of increase of any global region, just behind Europe and its predicted increase of 3.3 percent. The Hay Group, a global management consultancy, collected outlook data from 69 international companies. Hay Group representatives caution interpretations of their report by saying that growth is usually tied to inflation levels. Some of the higher growth rates in salaries are in regions that are experiencing high inflation as witnessed by Venequela’s 29% incrase and Argentina’s 24.5% increase. Some of the larger countries mention in the report: India (10.5 percent) China (9.5 percent) Russia (9 percent) Brazil (5.5 percent) As usually, for U.S. companies to remain competitive, the entire compensation and benefits package needs to be taken into account and communicated to employees in an efficient ...