A 401(k) plan is a retirement investing plan available to employees by their employers that allows workers to invest a percentage or fixed amount of their paycheck. It is a financial tool that allows your business to attract, retain and reward skilled employees. Everyone is worried about retiring as social security and pensions are no longer the norms. 401(k) plans are our generations investing vehicle and offering this option to your employees is a must. It creates benefits for the entire company, including the owner. Small business owners are usually concerned with the cost, the time requirement and that their employees will not participate.
This article hopes to shed light on the benefits of your business offering a 401(k) plan. If you have any questions or concerns please feel free to DM me or reach out at (419)806-2986.
Why should you offer a 401(k)
- Employee Satisfaction Increases Your Bottom Line. Studies show that happy employees contribute to a better bottom line. For example, revenue increased 22.2 percent for the 2014 Fortune 100 Best Companies to Work For. Retirement options are the primary benefit when an employee is deciding on their next position. Offering a 401(k) plan meets this objective so your business can reduce turnover and attract skilled talent.
- Cost. 401(k) plans are very flexible in their design. Depending on how much you are willing to allocate to the plan there is an option for you. Make sure you talk to a 401(k) plan specialist so they can match your objectives and needs to the right type of plan.
- Administration Can Be Outsourced. Using an in-house specialist can end up costing you more than you think. This can lead to inefficient processes, employee confusion and the possibility of being liable for any mistakes. When you don't have the expertise or time to do something, what do you do? You hire someone who can do it effectively and for the right price. Using a 401(k) specialist will establish the right plan for your business and will be able to teach your employees on the importance of investing in the plan. As your business grows so will your plan. A knowledgeable advisor will know when your plan needs to adapt. This can reduce costs for you and your employees.
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