In today’s job market, top talent knows the value they bring to employers, and one of the best ways to attract the best employees is to offer a competitive compensation package. Salary, health insurance, and dental insurance top the list of benefits candidates weigh in their decision to accept job offers. But that’s not all that matters to savvy job seekers. One way to stand out among the crowd, especially if you’re a small or mid-sized business, is to offer a 401(k) plan.
A 401(k) Plan Can Help Differentiate Your Company
Competing with other employers on salary alone assumes that candidates look at pay as the differentiator. However, top prospects recognize the comprehensive value of the complete compensation package over a long period of time. Structuring a 401(k) plan with significant employer contribution matching, a vesting schedule advantageous for the employee, and offering the ability to participate right away boosts the total value of the compensation you offer.
A 401(k) Plan Signals Stability and Growth
By offering a 401(k) plan, you send the message to prospective employees that your business is stable and ready to grow. A company-sponsored retirement savings plan produces the most value over time. Establishing a compensation plan aimed at long-term growth means committing to staying in business for the long haul. An organization with a long-game strategy will likely be more appealing to employees that value job security.
A 401(k) Plan Demonstrates Commitment to Employees
Providing a 401(k) plan is one of the best ways an employer can invest in the future of their employees and show that the organization cares about their well-being. A well-designed 401(k) plan increases confidence prospective employees have in the company’s commitment to workers.
A 401(k) Plan Helps Retain Employees
An organization with long-term employees reflects positively on the company’s ability to maintain employee satisfaction. Offering a retirement savings plan strengthens employee retention and, in turn, attracts new employees due to low turnover rates.
Best Features to Include in a 401(k) Plan
Not only do candidates pay attention to whether or not a company offers a 401(k) plan, prospective hires also compare retirement plans across potential employers. To ensure you offer the most competitive 401(k), be sure to include the following features in your plan:
- Immediate Eligibility
- Maximum Employer Match Contributions
- Shorter Vesting Schedule
- Low Fees
- Roth 401(k) Option
- Wide Range of Investment Options
- Financial Advisors and Professional Services
Wickham Financial & Insurance Services works closely with individuals to assist with financial planning as well as with companies of every size that offer 401(k) plans. Our team of professionals knows what matters most to both employees and employers when it comes to retirement savings plans. Our financial professionals are ready to assist you with establishing a 401(k) plan for your company or modifying your existing plan to maximize the benefits to your current workforce and to attract the top talent in your industry.
Any information provided has been prepared from sources believed to be reliable but is not guaranteed, does not represent all available data necessary for making investment decisions and is for informational purposes only.