Retirement plans are not only a great incentive for your employees, but they also offer big benefits for your company.
401(k), specifically, are a helpful way to do double duty for your business and your employees and, contrary to what you may have heard, they’re not just for big businesses.
Help your employees and yourself prepare for retirement by implementing a 401(k) plan. Here are 3 important reasons why you should consider it.
1. Help retain ideal employees.
Motivated and successful employees want great benefits from their employers. Not only will plans like a 401(k) entice better recruits during the hiring process, they will also keep valuable employees in the company for years to come.
During the recruitment process, an employee is going to choose the job opportunity with the best overall package, all other things being equal. That, of course, includes the benefits package. The best employees will be highly sought after and, therefore, desire the best benefits.
Employee retention is also essential for the success of your business, as hiring and training a new employee is more expensive than retaining an existing employee. What’s more is that a satisfied employee will often be more successful (read: build profits) in your company than a dissatisfied employee.
2. Easy to set up (and maintain).
A common 401(k) myth is that they are difficult for employers to create or set up. Far from the truth, you’ll be amazed at how easy it is to set up a plan for your business.
Many providers offer a seamless setup process for 401(k) plans, including flexible and customized options that fit your company’s unique needs.
In addition, ongoing maintenance is easy with most 401(k) programs. Often, you’ll have the ability to jump online, log into your account, and alter what you need to. Or if you prefer the phone, most providers offer customer service (often 24/7) so that you can call into a specialist who can make changes on your behalf.
Do your research to identify the right provider for your business, but know that most have streamlined the setup and maintenance process so that you can get back to what you need to focus on.
3. Earn big savings.
Last, but certainly not least, your 401(k) plan will help your company save money. Depending on the size of your plan - and what contributions you choose to make - you could be looking at big tax savings at the end of the year.
Tax credits are offered to companies offering plans, as well as limited tax-deductible opportunities when matching employee contributions.
What’s more is that as your own employee, you will save on your own taxes by making personal contributions too!
Have more questions about offering a 401(k) plan for your employees? Contact us at get-benefits today to learn more.