While many employers view younger generations as job hoppers, planning for retirement is just as important to them as it is to other workers. In a highly-competitive labor market, offering the right benefits can give you an advantage in attracting and retaining top talent – and retirement plans often top the list of benefits employees want most.
A Valuable Benefit
Having watched the financial struggles of older workers and retirees during the Great Recession, millennials are more determined than ever to take advantage of the retirement benefits offered through employer-sponsored retirement plans. Thanks to the long-term financial security they provide, retirement accounts like 401(k)s are frequently listed as one of the most sought-after benefits for workers when considering a new position.
A Reason to Start… and Stay
Not only can offering these benefits help employers land candidates for open positions, they can also be the key to retaining employees for the long haul. While almost a third of employees list retirement benefits as an important factor in accepting a position, nearly half of workers say that those same benefits are an important reason they stay with a company.
Retirement accounts give workers a vested financial interest in staying with their employer. Additionally, employers who offer matching contributions demonstrate a commitment to their employees. While an employer match does mean an additional cost, employers can achieve savings, in the long run, thanks to reduced turnover.
Invest in the Future
Offering an employer match as part of your retirement plan can help encourage more employees to participate in the company’s program. Since the employer match doesn’t count toward the maximum plan contribution, matching allows your employees to maximize their retirement savings and better positions them to make the transition to retirement when they’re ready.
Make Saving Easy
Defined contribution employer-sponsored retirement plans, such as 401(k)s, make saving for retirement easy and hassle-free for employees. These pre-tax deductions allow them to contribute to a healthy financial future, while also achieving tax advantages.
Consider auto-enrolling your employees in your company’s retirement plan. Once employees become accustomed to automatic contribution, they will likely continue it. Conversely, if an employee does not opt to contribute to your retirement plan initially, he or she will have a tough time catching up. Read Help Your Employees Prepare for Retirement to learn more about 401(k)s and other retirement accounts.
Plan Administration You Can Trust
Offering the right retirement benefits for your employees can help better prepare your workers for retirement, while also helping your company achieve its employee-retention goals. Selecting the right retirement plan can be a daunting task for many small and mid-size employers – that’s where we come in. Sheakley Retirement provides individual retirement accounts support for small to medium-size employers. It starts with a consultative meeting to determine the plan design that best meets the needs of both the business and its employees. We’ll then manage the retirement planning services, ensuring a simple, efficient and successful 401(k) profit-sharing or other retirement program.
Learn more about Sheakley Retirement and contact us for your free consultation today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join the discussion by commenting below.