DRESHER, PA — Newport, an Ascensus company, and PLANSPONSOR have unveiled the results of their 2024 NQDC Trends Survey, highlighting a growing trend among employers to leverage Nonqualified Deferred Compensation (NQDC) plans to attract and retain key employees. This year’s survey underscores a significant shift as more small and mid-sized businesses integrate these plans into their benefits packages, aiming to appeal to senior leadership and top-tier talent.
The biannual survey, which gathers insights from a wide range of firms, provides the most comprehensive view of employer strategies in the NQDC landscape. Findings indicate that businesses are increasingly offering financial wellness programs, such as budgeting and retirement planning, as part of their NQDC benefits. This trend aligns with a broader strategy to enhance the overall value proposition for plan participants.
Mike Shannon, Senior Vice President of NQ Strategic Development at Newport, noted, “This year’s survey results confirmed the trend we’ve been seeing—more small and mid-sized companies are implementing NQDC plans. The final report is a useful tool for employers and plan committees as the need to attract and retain key employees in today’s job market continues to intensify.”
The report also reveals a shift in funding strategies, with a growing mix of corporate-owned life insurance and mutual funds being employed. This change reflects a desire to streamline administration and improve service delivery. Moreover, some plan sponsors are considering switching administrators to enhance their offerings and reduce costs.
According to Alison Cooke Mintzer, Publisher of PLANSPONSOR, “Nonqualified deferred compensation plans are an important recruitment and retention tool for top executives at employers of all types and sizes.”
The survey data serves as a valuable resource for employers and financial advisors, offering insights into current market trends and aiding in the design of competitive compensation strategies. By leveraging these insights, organizations can better align their NQDC offerings with employee needs and market conditions.
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