Offering Retirement Plans to Employees Is Vital to Your Business
As a business owner, you value your employees. They make your business a productive and profitable enterprise. As people just like you, employees are often concerned about their futures: what will retirement bring for them?
Give your employees the options to make their futures secure, promising parts of their lives. In offering retirement plans and investment opportunities to your employees, you may just benefit from improved retention and recruiting results. The cost of such retirement plans does not match the potential gain from increased job satisfaction and efficiency. But, before discussing the numerous advantages of business financial services: let’s briefly review popular options for business retirement plans.
Decide Which Plans to Offer to Your Employees
There is no one package or plan that will suit every need for your business or your employees. Rather, there are multiple retirement plans that offer different advantages for those that choose to take them. These include:
- 401(k) plans
- Simple IRA Plans
- Employee Stock Option Plans (ESOPs)
- Defined Benefit Pension Plans
A full examination of each type of plan is not necessary to understand the overall benefits of offering retirement plans, in general. For in-depth descriptions of common types, consult our blog post on retirement plans.
To choose the right retirement plan for your business, there are several important considerations that may seem to be complicated. We advise you through the entire process of choosing and implementing a retirement plan. The major advantages of offering this to your employees affect not only your workforce but also your business.
Benefits for Your Employees – Improve Your Recruiting
According to Forbes’ article about business retirement plans, employees typically rely upon workplace-provided sources for savings and financial planning options. Retirement plans offer convenient and effective ways to build savings for an upcoming stage of life wherein costs may be high and substantial income is vital.
Logically, then, many job-seekers make decisions to accept or reject job-offers as a result of retirement plans. Offering the right options will increase your ability to recruit new, qualified employees for important positions in your business. Nationwide Insurance supports this claim.
Additionally, the IRS reports that providing customized options for your workforce allows them to easily make contributions through deductions from paychecks and possibly reduce their current taxable incomes. Their financial prosperity and security do not only rely upon their regular paychecks but also the retirement plans that you offer.
Overall, business financial services work to create both high-quality job-opportunities for future employees as well as valuable goals for current employees to achieve upon retirement. This may very well increase job satisfaction – and, employee retention.
Benefits for Your Business – Improve Your Employee Retention
As just described in the previous section: employees may feel that there is no ultimate goal or purpose for their jobs without secure retirement plans through those jobs. This feeling may be sufficient to decrease job satisfaction among your workforce. And, dissatisfied employees often leave jobs. In other words: such low job satisfaction may be a signal of decreasing employee retention (see the retirement planning page from Nationwide).
Along with the lack of a secured future for employees, no retirement plan likely means that those workers cannot retire. Therefore, older employees must continue to work at your business. This can directly increase your healthcare costs because of increased health insurance rates. This is because older employees are likely considered to be increased risks (see the Forbes article).
As a result: offering high-quality retirement plans ensures that your business has the workforce to be successful. Overall, employees will not disproportionately quit because of low job satisfaction (see information from the IRS). And, older employees will be able to retire at a reasonable time to create a healthy employee retention rate.
Your Business’ Success Rests Upon Business Financial Services
Your employees are crucial components to your business’ operations. But, the success of your business does not necessarily rely upon them, alone.
Give your employees the motivation to work towards the goal of a secure retirement. Improve your recruiting abilities by offering competitive retirement plans to talented and skilled job-seekers. Maintain a healthy balance of new and current workers through your employee retention.
Demonstrate the value of your workforce by giving them value through high-quality retirement plans. The advantages of offering these options to employees are worth significantly more than their cost.
Where Do You Go From Here?
After making the decision to offer business retirement plans, you still have many complicated factors to consider before actually doing so. Do not go through the process of choosing retirement plans without our business financial services. Contact us to see how we can help you, today.