Benefits of Offering Your Employees a Retirement Plan
Have you ever contemplated the decision to offer retirement plans to your employees?
Some employers see this as an additional, unnecessary cost. After all, why spend that extra money on a retirement plan for your employees if you don't have to? However, there are a great deal of benefits to consider that can often outweigh the costs.
Trust us, it's worth it to invest in your employees. Here are a few specific benefits of employee retirement programs.
Employee Retention Is Crucial
Your employees are the backbone of your company, and making sure that they are happy at work is one of the most important parts of running a business. Happy employees are more productive and less likely to quit their positions.
Adding a retirement plan lets your employees know that you appreciate them, and that appreciation (and retirement security) are key to building morale.
On the other hand, not offering your employees benefits and perks can often result in a lack of loyalty to the organization, and in return poor employee retention. It's better to show support than continuously trying to find new team members. After all, it costs far more to hire a new employee than it does to support the employees that you already have.
Attract Top Talent
When the time arrives to find new hires, a competitive compensation package can be extremely helpful in attracting top talent.
When candidates face the choice of a good salary vs a good salary plus benefits, such as retirement plans, they're likely going to choose the option with additional perks. Including a retirement plan will help the position that you offer become more competitive as a result.
A Retirement Plan Gives You a Tax Advantage
Did you know that there are tax advantages to giving your employees retirement plans?
It's true. Business owners are able to match contributions made by employees (a perk for them!), with most matching contributions considered tax deductible (a perk for you!).
Both you and your employees may lower some tax costs when you give them a retirement plan. Congress wants to encourage retirement plans, so it makes sense that there would be some benefits to implementing one.
Some employers also receive a credit for retirement plan startup costs.
Your Employees Deserve Retirement Plans
If you value your employees, offering them a retirement plan as part of their compensation package is a great idea for both you and them.
You want a workplace full of happy and productive workers who will stick with you for the long haul. A good retirement plan helps you to achieve that.
Selecting retirement plans can be confusing, especially if you have never looked into it before. That's why we're here.
At Synchrony HR, our team of professionals can help you navigate all kinds of employee benefits, including retirement plans. Contact us so we can help you get started.