Any business that wants to attract and retain high-quality, loyal employees must offer a solid benefits package.
One aspect of that package is the retirement benefits.
Since most employees don’t want to work forever but retire and enjoy life in their later years, a package that plans for the future is usually a win-win for both the employer and employee.
Attract Better Talent
According to a study back in 2012, only 30 percent of Fortune 100 companies offer retirement benefits; down from 40 percent in 2009. Studies show that even fewer small companies include 401k plans or other retirement options in benefits packages.
While these statistics may be disheartening to today’s job candidates, they’re good news for you.
If your business offers such a package, you’ll stand out in the crowd.
Not only will you attract more high-quality candidates, but you’ll retain the people you hire.
Most people don’t want to give up a benefit they already have, so they’ll be less likely to accept a job offer that doesn’t include retirement benefits.
Create Better Company Morale
Employees want to know their employer cares about them, and a retirement plan is one way of stating that fact. By offering such a plan, it shows you are concerned about more than the bottom line.
You want your employees to be happy and cared for, too. And if you contribute to the plan, you’ll be thought even more highly of.
Employees who have a positive opinion of their employer are more likely to be loyal, dedicated workers.
They will go the extra mile and put in their best efforts over someone who has a negative or even neutral opinion of the company they work for.
Protect Your Own Future
Small business owners often fail to plan for their own retirement.
When you sign up for a 401k plan for the company, you can begin planning for your own future. Many of these plans provide rollover benefits.
What this means is you get to keep the plan even if you start another company or someday decide to sell the business and become an employee again. This allows you to plan for retirement even if you aren’t sure what the future holds.
Many of today’s plans are administered by outside companies. This reduces the burden on small companies with a limited HR staff.
The benefits company will handle the signup and maintenance of the program, so your staff doesn’t have to.
Many of these companies also provide seminars to educate people about financial planning.
As the article, “Make Sure Your Retirement Plan is Ready to Slide into Home Plate” says, not having a retirement plan can be a little scary.
Professionals can answer questions and help your staff make good planning decisions and you won’t be responsible for providing the detailed information.
Almost everyone hopes to retire someday, but many fail to begin planning for that future.
Businesses that help employees start saving with a retirement plan will benefit in many ways.
About the Author: Joyce Morse is an author who writes on a variety of topics, including HR and finance.