13 Dec Top 4 reasons you should offer your employees a 401k
A workplace retirement plan is one of the most effective ways to help retain talent and benefit employees’ futures. The importance of retirement benefits cannot be overstated. Here are four reasons why you should consider offering your employees a 401(k) plan:
- It helps recruit & retain valuable employees: Very few small companies offer retirement plans. Those that do, gain a competitive edge in their ability to attract & retain the best candidates. Many employees cite retirement options as one of the primary benefits they seek when deciding where to work, offering it to them can contribute to higher work satisfaction, help you reduce turnover, and even help your business make more money.
- Offering better benefits adds to company profits: Happy employees lead to better performance and higher profits. For example, revenues increased up to 22.2% percent for the Fortune 100 Best Companies to Work For in 2014. It pays to invest in your employees. Giving employees amazing benefits is the best way to ensure they are happy, remain loyal to your company, and want to help you make it succeed.
- It’s Affordable: A 401k plan is one of the lowest-cost and highest-value benefits you can offer to your employees. Contrary to popular belief, employers are not obligated to make contributions to employees’ 401(k) retirement accounts. If you do decide to make employer contributions to your company’s retirement plan, they are generally tax-deductible. Additionally, your business may be eligible for a tax credit for establishing a qualified retirement plan.
- Invest in your own retirement: It is important to consider your own future & to prioritize your retirement savings throughout your career. Even if you experience variable income or business troubles, your retirement account will remain solid.
We understand that you may not have the time or the bandwidth to oversee the responsibilities that come with managing a 401k program. That’s why we’ve teamed up with TAG to help reduce company cost and complexity, and to get a plan up and running quickly for your company. We can help you tailor a plan to the needs of your business that is both simple to manage and affordable. Learn more here!