Attention Plan Sponsors:
What Is the Desired Effect of Offering Employees a Retirement Savings Plan?
Business owners may be told they must offer their employees some type of retirement savings plan. And new laws do require certain employees to offer some type of retirement savings plan to their employees. However, not all retirement savings plans are built the same. Therefore, the type of plan you choose makes a significant difference.
Why Should You Offer an Employee Retirement Savings Plan?
Whether you are legally bound to offer employees a retirement savings plan, it is always recommended that you do. However, what is the purpose of offering such plans? Obviously, the main purpose is to provide employees with the opportunity to save money tax-free for retirement.
However, what is the benefit to you, the employer, of offering such plans? Studies have shown that in any economy, employees care almost as much about benefits as they care about salary. Many employees will opt to take a position for a little less money if they receive stellar health and retirement savings benefits. Therefore, your decision to offer a retirement savings plan should be based on employee retention, morale, and lowering turnover rates.
How Can Your Employee Retirement Savings Plan Ensure Employees Stay with Your Company?
The details of the retirement savings plan you choose for your employees are extremely important. They can be the difference between loyal employees and employees running for the door.
Not all retirement savings plans are alike. Therefore, it is important to work with a financial adviser you trust to determine the best, most cost-effective options for your company and your employees. The better the rates of return, portfolio diversity, and flexibility, the more likely employees are going to want to stay with your company through all its highs and lows.
However, if you try to cut corners on your employee retirement savings plans, you will guarantee your employees will look for better options elsewhere when the opportunities arise.
Retirement Plan Services Group Can Help Your Find the Retirement Savings Plan that Works for You and Your Employees
The best way to ensure you have a stellar employee retirement savings plan is to work with a financial adviser you can trust. With over 40 years of experience in the industry, Retirement Plan Services Group can help you find the right plan for your company and employees. Call today at 609-922-0201for a consultation.