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Henderson Engineers

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Company retroactively redacted 401(k) contributions for the year in Q4 (October) - Telecommunications Engineer Henderson Engineers Employee Review

1.0
Mar 18, 2021
Recommend
CEO approval
Business outlook

Pros

They work on some large projects for large companies, if that's a "pro" for you.

Cons

In October 2020, there was an announcement that the company was hoping to bring back a 401(k) match of 3% for the year. Up until this point, we had been told the match would be 100% up to 3%, then 50% of the next 4-6%, and 25% of 7-9%. Therefore, myself and many others were contributing the full 9% to get the maximum match. The company had already delayed wage increases, merit based promotions/bonuses and laid off about 50 employees "due to coronavirus" - all of these decisions were not favorable, however they were pretty typical for companies to do this. However, I have never heard of a company going back on their 401(k) match, especially with no prior warning. I spoke with a couple dozen employees a multiple levels - designers, drafters, project managers, even a few principals and all were caught equally off-guard by this. I sent a message to the HR department and CC'd the CEO and CFO. I explained that I thought these decisions should be made at the beginning of the year, before any employee contributions are made. I explained that if I had known there would be no match or a lesser match, then I would have made those contributions to better investment vehicles like my HSA, IRA, or my children's' 529 college funds. I also proposed changing the contribtutions for the next year (2021), rather than the current year. I received a rather lengthy response from the CFO stating they made the announcement in March, however the only evidence she could point me to was literally a footnote in a weekly newsletter listing several "possible" cost-cutting measures (some of which were never implemented or discussed further). I replied that there should have been an official statement regarding something as important as this. Less than 2 weeks later, I was fired for "performance issues", despite having a good performance review in July and also having just received a raise before I raised my hand about the 401(k). Why would you give an underperforming employee a wage increase, just to fire them within the month? Especially given the fact that I had over a month of paid vacation that they then had to pay out at my new higher rate. If they come back on this review trying to cover this up, just know that I saved copies of my personnel records (employee reviews) and paystubs to verify that portion of my story, as well as my emails with the CFO and HR.

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Henderson Engineers Response
5y
We always appreciate candid feedback, both positive and negative, and appreciate this former employee taking the time to share their experience. Unfortunately, last year, like so many other companies, Henderson had to make some tough decisions necessary to save jobs and remain competitive in our business. Some of those decisions while painstakingly discussed by senior leadership had to be made quickly. The measures described in this post (adjusted 401K match, paused wages, promotions, and bonuses) are all examples of what was necessary to address the changes that greatly affected our business, due to the unprecedented and unexpected global Covid-19 Pandemic. At the time these decisions were made, it was unclear just how long and to what extent, the Covid-19 pandemic would affect our company overall. In addition to the aforementioned measures, many of our employees took pay cuts. Some were put on extended furloughs, and regrettably, some employees had to be let go. All of this was in an effort to save as many jobs as possible. The decision to decrease the 401K match was not taken lightly. While our plan document states that the employers matching contribution is discretionary, this is the only time in the 50 years Henderson has been in business that we’ve had to modify our matching formula. We take pride in using many avenues to communicate with our employees, and we try to be as transparent as possible with our communication strategies. We understand from this prior employee’s perspective, we may have missed the mark this time. We will strive to use this as an example moving forward to improve our communication. We are proud of how many jobs the tough decisions saved, and that we were able to make a portion of the 401K match from Henderson possible at the end of 2020 after all. We are also proud of the fact that we were able to take merit increases off pause and catch those up for those who had been postponed. While we do not know who this former employee is, our best guess is that they received their postponed merit increase along with other employees when we were fiscally able to.

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