As a business owner, you have many responsibilities, from keeping the company healthy to ensuring your employees are happy at work. One way to spur employee satisfaction is to offer a workplace retirement plan.
But how do you balance the company’s needs with employee preferences when implementing a retirement plan and what about your personal investment future?
Check out these tips for building retirement plans for you and your employees so that everyone wins….
Consider the Match
A top detail to consider when strategizing a workplace retirement plan is whether the business will offer a match on employee plan contributions. This is also one of the top questions you’ll likely be asked by employees regarding the plan.
When deciding whether you’ll offer a match on employee plan contributions, consider such factors as the financial impact matching will have on the business, the impact of not offering a match and more.
If you do decide to offer a match, you’ll then need to consider such factors as the max percentage you’ll offer on employee contributions.
An inexpensive added value to consider offering with your workplace retirement plan is investment education.
Many retirement plan providers will offer the chance for workplace employees to meet with a representative and discuss investment plans, retirement goals and more.
When searching for a retirement plan to implement, inquire on if the prospective providers offer consultations such as this.
After you’ve found the best provider, set up a consultation schedule for employees.
Consider the Type
Will you implement an IRA workplace retirement plan or a 401K plan and what’s the difference between them?
These and other details are important to research and clarify from the outset to avoid future backtracking.
The best method for determining which type of workplace retirement plan is the best for your business is by discussing the options with potential providers.
Offer Automatic Deposits
Another added value to implement with your workplace retirement plan is automatic payroll deductions into retirement accounts.
Employees often say the most difficult part of saving for retirement is remembering to deposit funds into their retirement accounts on a regular basis.
By allowing your employees to make this process automatic, you’ll help put their savings on autopilot while showcasing your care for their futures.
Invest in You
As a business owner, you can’t do the best job for your company or employees if you aren’t first taking care of your needs.
Take a close look at your finances and consider whether you’re currently savings enough for retirement. While you may have hopes to someday sell the business and earn enough from the sale to retire, this plan isn’t guaranteed to happen.
Instead, invest in your future by opening a retirement account and investing in it consistently.
According to the article, “3 ways to build a retirement plan that grows”, being able to explore a variety of retirement plan options is important to ensure you’re chosen the right one.
As an employer, make sure that your workplace retirement plan comes with several options that your employees can explore.
For example, allow employees to have their workplace plan managed by the provider or by their personal financial advisers.
As a business owner, you have much to consider on the topic of retirement.
How do you create a retirement plan that’s best for you, the business AND your employees?
Get started by researching workplace retirement plans, by considering an employer match and, most important, by tending to your future personal financial needs.
About the Author: Shayla Ebsen is a freelance writer and editor with more than 10 years of professional writing experience both in the corporate and freelance settings.