Hewitt Associates just published an interesting study on 401K contributions among Hispanics and African Americans. Aside from long-term implications related to a lack of financial planning, the study highlights a characteristic often seen of Hispanics in the workplace. As a first-generation American, long-term financial planning wasn’t a concern in our household – I’m assuming most first generation Hispanics would agree. Coming out of college my first inclination was not to begin saving money!
While the results are interesting – I would caution accepting their generality. The Hewitt study does not examine differences based on educational, generational, or other social factors which may produce slightly different results. The study should create awareness among HRM professionals to focus on educating Hispanic new hires on long-term financial planning opportunities sponsored by the company during the on-boarding process.