"Workers' average tenure with an employer has plummeted over recent decades and now stands at 4.2 years ... Yet 401(k) vesting schedules have remained nearly unchanged.... Employers that use the popular six-year graded (or graduated) vesting method ... could move to a three-year cliff vesting approach ... If turnover is high in the first two years of employment, for example, and then levels off, there would be no additional cost to the company for those who leave during this time frame. In addition, three-year vesting may entice those who are contemplating leaving to stay and contribute to the organization at least another year."  MORE >>