Businesses tell employees to save for the economyby Toni Randolph, Minnesota Public Radio
St. Paul, Minn. — Twenty-one Minnesota employers are pledging to help more of their employees save money. To do that, the companies are encouraging their workers to use direct deposit for their paychecks. They are also encouraging them to participate in company-sponsored retirement plans.
Business leaders in the Itasca Project created the "Financially Fit Minnesota" program, and say these moves could help stabilize the state's economy.
Rick Hartnack at U.S. Bank says his company is automatically enrolling new employees into its 401K plan.
"There's a direct cost for the 401K match, but there's a return that we think we'll get, by reducing employee attrition, getting more employees to stay longer with our company, and that, of course, reduces all the cost of turnover," said Hartnack.
Researchers say less than 40 percent of workers have access to retirement plans. The Itasca Project says it hopes to reach 15 thousand families over the next two years.