Many small businesses struggle to find good workers that are dedicated to the company’s visions and goals. Oftentimes they are concerned about keeping the ones they already have. The incentives and retirement plans that larger companies can offer sometimes seem too large of an obstacle to overcome.
Luckily, retirement plans aren’t only for big companies in today’s small business world. Today, you can find 401(k) plans even for one-person businesses. Instituting a retirement plan for yourself is vital, and studies have shown that small business owners often fail to plan for their own retirements, assuming they’ll sell their businesses and live off that income. Implementing a retirement plan for your employees can also be a good way of rewarding them when you might not be able to in the traditional ways like raises and bonuses.
If you’re convinced, here are some ways you can make adding a retirement plan to your company’s beneficial to you, your business, and all the employees that take advantage of it.
Retirement plans can be designed make it more convenient for employees to save. Consider automatically enrolling employees into the plan or increasing their savings annually.
Educate employees about the value of their retirement benefits. Bring in experts from your retirement plan to periodically talk to employees about the plan options and encourage employees to contact the plan administrators for more information and advice.
By offering professionally managed accounts, your employees can easily make wise investment decisions. About two-thirds of companies with retirement plans offer the services of a professional investment advisor, while slightly more than half offer target-date funds that change allocation percentages as participants get closer to retirement age, and many match investments to participants’ tolerance for financial risk. Another excellent way to find better workers is to make 401(k) plans open to part-time employees.
Don’t put your small business out of the market when it comes to hiring and retaining employees by not offering some of the same benefits that the big box companies offer. It’s a lot simpler than it seems.