How Your Retirement Plan Should Help You Retain and Attract Employees.
If you have read or seen the news lately, you know that this country is in an employee’s market. In other words, There are more opportunities for employees than people looking for opportunities to work. Therefore, employers must compete for quality talent. They must offer salaries and benefits that allow them to both obtain and retain valuable and talented employees for their business.
One benefit that most employees look for is a retirement saving plan option (401k). They want to know that if they work hard now, they will have money that will let them retire comfortably in the future. They also want to know that employers are willing to invest in their futures to get quality work from them now by making reasonable matching and maybe even Profit Sharing Plan contribution amounts.
The Benefits of a Retirement Savings Plan
Employers receive several benefit from offering a 401k plans for employees. They receive tax incentives. They also serve to attract, retain and reward quality employees.
Employees who feel valued through benefits, such as a great 401k plan, tend to be more loyal to their employer. They tend to feel valued at work and want to achieve positive results in the workplace to maintain their employment.
For a reasonable expense an employer may put out for a 401k plan option for employees, it may result in huge benefits of increased productivity, increased employee morale, and thus increased customer retention. Satisfied employees show the world that they like what they do and where they work. That positive energy shines brightly, allowing others to want to do business with your employees and your company.
Not All Retirement Savings Plans Are Alike
As wonderful as it is to offer a retirement savings plan benefit to your employees, not all 401k plans are alike. Therefore, if you do not monitor your 401k plan and your employees’ reaction to it, you may find it is not helping you retain these valued employees.
Make sure your 401k plan advisor is available for employees to ask questions and address concerns about their retirement options and overall financial well-being. Your advisor should be transparent in the information they provide, easing employee concerns with every contact.
Additionally, your savings plan advisor should offer education and information to employees about changes in the laws and the economy that may affect their savings plans. They can then offer alternative investments to help mitigate losses during a difficult time in the economy, without instilling fear in your employees.
The more open and honest your retirement plan advisor is with you and your employees, the more likely your employees will feel valued by you, as the employer. Make sure to work with an experienced (10+ years) retirement savings plan advisor that believes in communication and transparency to ensure employees and you feel valued and important as customers and investors.
Conclusion
You have a right to expect more from your 401k plan and your retirement savings plan advisor. If you feel that you are not retaining employees as expected and your employees are not happy with the plan, maybe it is time to look at your benefits and the way in which they get explained. It may be time to contact the retirement planning specialists at Retirement Plan Services Group. Call Scott Tanker at 609-922-0201 or email scott.tanker@pbsrep.com.