Retirement Benefits Package for your Small Business
If you’ve ever hunted for job, you know the market is incredibly competitive. Your resume needs to show that you are the best of the best. It’s a lot of pressure.
Employers are not exempt from the pressures of the competitive job environment, either. A prospective employee wants to prove that they are right for the job. Companies want to find incentives to attract and retain talented employees. One of the easiest way to attract talent and to beat the competition is to offer an excellent benefits package. On other words: companies need retirement plans.
Obstacles to Offering Retirement Benefits
So why is it that smaller companies are falling behind?
According to a recent ADP Retirement Savings Study, 33{bc669dfb3651bb8509a96034cbe7494d3a811fc0eedf0ddccb239fb9cb737439} of businesses with less than 20 employees offer retirement benefits, compared to 98{bc669dfb3651bb8509a96034cbe7494d3a811fc0eedf0ddccb239fb9cb737439} of businesses with over 5,000 employees. Many financial advisers are noticing this trend and attempting to help smaller companies see the value in offering retirement benefits.
For many small businesses, the focus on managing daily operations leaves a lack of financial resources to create a solid pension plan. Investment choices, costs, managing responsibilities and risks, and finding the right person to oversee and maintain a retirement plan all present obstacles for smaller businesses – particularly for start-ups.
The problem with viewing a retirement plan this way is that many small businesses don’t see that pension plans can be used as a tool to help their company. This is because an attractive benefit plan almost always helps good companies find better employees, increase retention and boost company productivity.
Towers Watson’s 2013-14 Global Benefits Attitude Survey shows that when retirement plans meet the needs of employees, employees are nearly five times more likely to be highly engaged and to stay with the same company until they retire. In fact, almost 45{bc669dfb3651bb8509a96034cbe7494d3a811fc0eedf0ddccb239fb9cb737439} of individuals surveys pointed to benefit packages as the reason they will continue to work for their current employer.
Another survey, conducted by the The Employee Benefit Research Institute, found that offering a retirement plan increased an employee’s confidence in their ability to retire by nearly 50{bc669dfb3651bb8509a96034cbe7494d3a811fc0eedf0ddccb239fb9cb737439} (14{bc669dfb3651bb8509a96034cbe7494d3a811fc0eedf0ddccb239fb9cb737439} in 2013 to 28{bc669dfb3651bb8509a96034cbe7494d3a811fc0eedf0ddccb239fb9cb737439} in 2015). This is huge because, according to the 2015 Barometer Poll, most Americans believe they are ill prepared for retirement. With the looming concern of retirement assuaged, businesses can also be helping reduce stress and increase general economic productivity.
How We Can Help with Retirement Benefits
Financial advisers everywhere are taking on the burden of building retirement value for small businesses.
At the Storick Group, we are dedicated to providing small business owners with an accurate depiction of what a retirement plan looks like for their business by customizing plans to their needs. Additionally, we are dedicated to educating business owners on their investment options, fee structures and ways to administer a plan. Pension plans do not have to be expensive and intimidation.
One of the most important aspects of what our financial planners do is to counsel small business owners. We are not just here to build a retirement program; rather, we are here for you and your needs. We help small business owners implement a strong communications program. A strong line of communication is important because it allows employees to educate themselves on their benefits. It also, directs them to a knowledgeable support system that they can turn to if they ever have questions. A strong communications program is also there for business owners. They can answer any questions they may have as their company and pension plan evolves.
We focus on what matters most. Helping small businesses increase employee retention and engagement while building a future for their employees. A retirement plan is just the beginning. A solid financial advisor is here to guide you at every step of the process. Give us a call today to see how we can help you.
