In today’s competitive talent market, investing in benefit packages that include the tools to secure employees’ financial futures is critical. 401(k) plans are a good start, but meeting people’s needs often doesn’t stop there.
- Research has shown that 62 percent of workers seriously consider the availability of a retirement plan when deciding whether to accept or remain in a job. And, 76 percent are likely to be attracted to employers who care about their financial well-being – whether that means a 401(k) or other options, including SIMPLE IRAs and education in effective money management.
Benefits That Can Help You Discover Top Talent
The traditional 401(k) model was created in the 1970s to supplement standard pensions. For many businesses – namely, smaller ones – it no longer serves the purpose. Fees can be prohibitively high, and the regulatory framework involved can also be a deterrent. As an alternative, you may want to consider offering SIMPLE IRA plans, which provide you with a simplified method to contribute toward your own and your employee’s retirement savings.
- SIMPLE stands for Savings Incentive Match Plan for Employees. Employees may opt to make salary reduction contributions, and employers are required to make either matching or nonelective contributions.
The Importance of Financial Education
More than a third of Americans have reported that they’ve never had a retirement account. Among some minorities, the situation is even graver: In a UC Berkeley Labor Center study, it was determined that 70 percent of Latinos had no access to workplace plans, and over half of the private-sector workers had absolutely no retirement assets.
While part of the problem can be pointed toward an absence of access to retirement plans, another reason for these alarming statistics is likely a lack of financial education. People may feel they don’t know enough about finance to invest in a 401(k) or similar plan – or even have a solid grasp on the basics of personal budgeting.
- By offering financial education and training along with the right retirement plan for your business and its employees, you’re likely to find that people are happier, more engaged, and more likely to stay at your company. In yet another study, 25 percent of respondents agreed that their most desired benefit was one with access to unbiased counselors or training, to help secure their financial wellness.
- Offering the right finance and retirement benefits can help boost productivity even long after you’ve hired and onboarded top talent. Nearly three-quarters of those surveyed said financial worries severely impact their work productivity.
Looking to Learn More Abot Benefit Offerings? KeyHR Can Help!
KeyHR can help define, develop and implement the best financial, retirement, and other benefit offerings tailored to your business and its unique workforce needs. We’re aligned with preferred provider companies to offer the latest and most innovative solutions for benefits, employee leasing, payroll, insurance, and overall HR management. Reach out to us today to learn more.
- Posted by admin
- On June 21, 2023
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