High employee turnover harms all aspects of your business. Hiring and training new staff is costly and time-consuming, resulting in lost productivity for the organization and a decrease in overall morale. The retention of employees is a vital part of ensuring your business stays on track to achieve its goals.
One aspect of employee retention is ensuring workers have access to benefits. The majority of workers consider a 401 (K) benefits plan vital in enabling them to secure their futures. Amid an ongoing pandemic and constant economic uncertainty, prospective employees want to feel as though they are actively investing in their retirement.
A 401 (K) plan enables the employee to invest a percentage of each paycheck directly into a specified account. Their employer may match some or all of that contribution. In the case of traditional 401 (K) plans, employee contributions are deducted from their gross income, reducing their taxable income and enabling them to report a tax deduction for that year.
Another option that has gained considerable popularity is the Roth 401 (K), which involves Roth account holders paying taxes as they contribute to their fund. Thus, withdrawals from the account are tax-free.
401 (K) Plans Boost Employee Morale
Employees want to feel as though the companies they are dedicating their time and energy to have their best interests at heart. By providing a 401 (K) option, you show your team that you value their financial well-being and want to help ensure they are secure in their retirement years.
401 (K) Plans Make Your Business More Competitive
An organization offering benefits has an instant edge over the competition. By offering 401 (K) packages, you are more likely to attract high-quality talent seeking steady, long-term employment and thinking seriously about their futures.
401 (K) Plans Save Your Business Money
Any matched contributions an employer makes to their employee’s 401 (K) plan are tax-deductible. The offer of a 401 (K) plan aids in employee retention significantly, as employees will see a tangible benefit to staying in their position until their retirement years. Recruiting, onboarding, and training replacement workers is also a costly undertaking for every business, and that is before one considers the hours of lost productivity involved.
We Make 401 (K) Plans Easy to Navigate
The prospect of introducing 401 (K) plans is daunting for many employers. Employers with fewer than 100 employees offer 401 (K) benefits far less often than their larger competitors. Many employers feel confounded by the idea of selecting investment options for their employees, particularly if they have a mix of younger and older workers who may have different priorities and needs.
Employee Retention Benefits (ERB) is the number one employee benefits firm on the West Coast. Our team has a comprehensive understanding of the best practices of the past and stays up-to-date regarding the ever-evolving industry. We’re here to guide your Pasadena, CA business to success in securing the right plans for your employees.