One of the best ways to attract and retain top talent is by offering a generous benefits package that includes a retirement plan. Offering a retirement plan can entice better applicants and help employees feel like they have a long-term strategy that will help them down the road. In addition, retirement plans can increase employee satisfaction, loyalty and commitment to company goals.
Retirement plans offer you and your business:
- A recruiting edge
- Nice tax advantages
- A richer compensation package
- Enhanced employee motivation and productivity (particularly if the plan has a profit sharing element)
- A convenient vehicle to save for your own retirement
Which plan is the best fit for your business?
There is no one-size-fits-all option. Retirement plans come in all shapes and sizes, including:
- Individual Retirement Account (IRA)
- Saving Incentive Match Plan For Employees (SIMPLE)
- Employee Stock Ownership Plans (ESOPs)
- Simplified Employee Pension (SEP) plan
- Profit-sharing plans
- Defined contribution plans
- Target plans
Different types of plans achieve different kinds of goals. Some plans are designed to maximize tax breaks, others focus on the benefit to employees and still others focus on what’s best for the company owners. When assessing your retirement options, consider all the contributing factors – today and tomorrow. How many employees do you have? How many will you have in two years? Are you willing to give every employee the same retirement benefit, or do you want flexibility? Does your cash flow support monthly contributions, or would you prefer an annual contribution based on profit sharing? Do you simply need a vehicle to facilitate employee contributions, or would you like to offer a company match?
With so many options, you’ll definitely want to seek advice from your accountant, your lawyer and your insurance provider. When you’re ready to explore your retirement plan options, see the experts at Higginbotham. Our Retirement Plan Services department has the expertise to work with virtually any plan, including 401(k), Defined Benefit and 403(b). We also work with all types of vendors, such as insurance companies, mutual funds and third-party administrators. And, Higginbotham lets you add this important benefit without adding to your administrative load.