Biggest Portion of Americans Employed by Big Business

March 19, 2002 (PLANSPONSOR.com) - The profile of the US worker is changing as the likelihood of being employed by larger companies increases, data from the US Small Business Administration (SBA) show.

In 1999, big companies, those employing 500 or more workers, employed 49.7% of the nation’s 111 million workers, compared to 45.5% 11 years previously. If the data is extrapolated, the figure probably passed 50% in 2000, the SBA says.

In addition, nearly 17,000 large companies accounted for about 55 million employees.

Get more!  Sign up for PLANSPONSOR newsletters.

According to a USA Today report citing the Employee Benefit Research Institute (EBRI), the shift means that more people will be covered by company benefits.

According to EBRI:

  • about 82% of big employers offer health insurance, compared to 68% of small firms,79% of employees at bigger companies have retirement plans, versus 46% of employees at small companies
  • But small firms still have some clout. Almost 90% of the US’s 5.6 million employers have fewer than 20 workers. And smaller businesses create 75% of new jobs

And small firms may temporarily regain an edge on employment when SBA figures for 2001 are released in the fall next year – since large companies cut a record 2 million jobs last year.

Employees Concerned About Retirement Security

March 18, 2002 (PLANSPONSOR.com)-The Enron fiasco has caused more employees to consider the security of their 401(k) and retirement plans, a new survey finds.

According to a new survey from Insight Express, an online market research firm, 45% of employees are more concerned about the security of their plans since hearing about Enron.
 
Meanwhile, 33% would consider purchasing some kind of retirement insurance to protect their investments from situations similar to the Enron case.  At the same time, 4 out of 10 employees said they would welcome reassurance from their employer about the security of their plans.

However, the survey also found that that only 1% of employees trust employers most to provide sound financial guidance.

Get more!  Sign up for PLANSPONSOR newsletters.

Instead, most employees have high expectations of plan providers and financial advisors who they trust to take the appropriate steps to make them feel secure about their investments.

In fact, the survey found that employees would like 401K/retirement funds providers to:

  • be held responsible for their investment recommendations- 67%
  • quickly communicate potential issues and risks regarding investments- 59%
  • report suspicious practices of companies to the government- 59%
  • conduct due diligence on their recommendations- 43%
  • have no involvement in the investment opportunities they recommend- 31%

 

«