To attract and retain talent, most companies rely on three key employee benefits: Competitive salaries, medical insurance, and a retirement plan. That means your 401(k) plan is a critical component of your employee recruitment and retention program, and can even improve your profitability, reducing the amount of time and money you spend to advertise and fill open positions. According to a study by Wilson Wyatt Worldwide, companies that provide and promote a strong benefits package to attract and retain staff can add 7.3 percent to their bottom lines.
Sponsoring a 401(k) plan in your company is important for a number of reasons:
Everyone else is doing it. WorldatWork, a nonprofit human resources association, estimates that 95 percent of its member companies offer a 401(k) plan. It’s difficult to retain your talent if you’re not offering a benefits package that’s comparable to other employers.
It shows you care. Assisting your employees in planning and saving for retirement demonstrates that you value them, and that you are a partner in planning for their futures. A 401(k) plan allows your employees to make decisions about their life and needs, using the tools that you provide.
It’s good business. A 401(k) retirement plan offers tax benefits both to your employee and to your company, and can be very affordable. Plan administration expenses and any discretionary contributions provided to the employees, such as employer matching or profit-sharing, are tax deductible to the company.
Currently, many people are not on track to meet their retirement savings goals, and the public’s confidence in Social Security is dropping. That means many prospective employees are feeling pressure to save for retirement. A company that offers a 401(k) plan has an edge in recruiting top-performing workers.
If your company needs help to create, promote, and administer a successful retirement program, FiduciaryFirst can help. Using our PlanSuccessSystemSM, we’ll work with you to structure a retirement plan that meets your organization’s goals and maximizes benefits to you and your plan participants. Visit us today at fiduciaryfirst.com or call us at 407-740-6111.