Vesting Periods Research Paper

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Yes, employers should take advantage of vesting periods. The advantage to vesting periods for employers is that there is a reduction in administrative and participation costs for short-term employees (Shreve, 2006). In addition, it creates incentive for employees to stay long term to get the benefits and allow them to grow long term, like a pension for instance (Shreve, 2006). Conversely, there is a balance between an appropriate vesting period and a counterproductive one, as too long of a period can demotivate employees and encourage them to look elsewhere for employment (Shreve, 2006). Traditionally, vesting periods are 3 months, 6 months, or a year for certain benefits or programs (Shreve, 2006). Yes, certain benefits should have varying

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