I had an interesting conversation with a manager who lamented the difficulty of retaining workers and the transient nature of professional staff. Whereas decades ago people stayed in their jobs for most of their careers, it seems that five years is now closer to the norm.
He attributed this to the advent of 401(k) plans, which made retirement savings portable. Instead of the incentive to stay with one company to become vested and receive a pension, 401 (k)s allowed people to change jobs without retirement penalties. It changed the financial sector, as well as having a significant impact on companies across industries and their employees.
You may not consider that employee retention issues are linked to a 1978 tax law that redefined employer-sponsored options, but, whether conscious or not, it changed the longevity patterns for many. It always helps to look back in time or upstream to discover the source of the unintended consequences you face today.
