Why can’t employers get rid of Vesting schedule ? I get its necessity for stock plan or esop etc but the lock in period for 401k does not make sense..let the benefit accrue from day 1..

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It is one tool they perceive as a means of mitigating turnover and cost of a short-term hire. Tbh, it does actually save a decent chunk of change for the company.

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Yah it’s very effective imo on retention. I know for a fact I wouldn’t leave before my vesting and leave free money on the table

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They got you :)

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