Harry’s has added a match to its existing 401(k) plan.
The company, which is known for its direct mail service for shaving products, started matching 50% of the first 4% of employees’ salaries, or 2% maximum, for its more than 300 U.S. workers in January. All regular full-time and part-time employees are eligible for the benefit, which is being offered through provider Betterment for Business.
Jessica Feldman, director of people operations at Harry’s, says the company has been using Betterment for Business for its retirement plan since September 2017, but decided to add the employer match after a vast majority of employees indicated on a benefits survey that a 401(k) match was a highly desired offering.
“Once we saw that data, overwhelmingly we were like, ‘We need to take action,’” Feldman says. “We want to listen to our people and add what’s valuable to them.”
Feldman says that Betterment for Business has done a good job engaging workers with their retirement plans. Employees don’t often think about retirement because it seems like a far off event or they may be struggling with other financial issues like student debt.
Adding a match, though, has encouraged workers to put away more money, she says.
“[It helps employees think,] ‘If I don’t enroll, I’m missing out on free money,’” she says. “It helps people prioritize.”
Other employers have been extending matched funds to student loan debt, an issue that overwhelmingly impacts younger workers. For instance, CSAA Insurance and The Travelers Companies both recently added a student loan and 401(k) matching benefit.
Feldman says offering a 401(k) plan — and a match — is not only good for employees but also for employers.
“Offering a really solid 401(k) plan is important regardless of retention,” she says. “It’s important to help our employees save toward long-term goals.”