As the Great Resignation continues to impact companies across the country, employers are working harder than ever to retain talent. While competitive salaries and health insurance benefits are obvious first steps for many businesses looking to retain their people, robust retirement plans are an equally important factor in the retention equation.
Compensation is a Package Deal
According to a survey by Willis Tower Watson (click here for this source), 75% of new hires at a company offering a 401(k) say that a retirement plan provides a compelling reason to stay. While raises and bonuses can fluctuate with company performance and other external factors, benefits like 401(k) matching equates to a more reliable and equitable incentive for all employees.
The Matching Percentage Matters
Research suggests that a competitive 401(k) match also discourages job hopping, especially among millennial staffers. The amount of money an employer chooses to match can vary significantly by industry and business size, but the average 401K match nets out to 3.5% (click here for this source), with top employers contributing at 6% or more according to the Bureau of Labor Statistics.
Offering a 401(k) plan communicates an important message to employees
Good employees leave when they no longer feel valued by their employer. Contributing to employee retirement plans shows your employees that you care about their future.
Have you considered setting up a retirement plan?
Aside from being a compelling draw to your workforce, employer contributions to employee 401(k) plans may be tax deductible as business expenses. Alternatively, eligible small business employers may also be able to claim a tax credit. The fine print can be tricky to navigate, so having an advisor you trust can really pay off come tax season. Our experienced team can help you and your business find the right retirement plan to meet your goals and take full advantage of the tax credits and deductions.
Already have a retirement plan set up?
For those employers who currently have an existing retirement plan, we offer a complimentary review and plan cost analysis.
At Storen Financial, we offer year-round, comprehensive options that implement tax-saving strategies to help individual and business clients pursue financial goals. Have questions? Want to learn more? Schedule an appointment with me today!
Blog by Alex Kiritschenko – Financial Advisor, Senior Tax Professional
Learn more about Alex and the rest of the Storen Financial team here.