Be a Champion for Your Colleagues - Offer Them a Better Retirement
Attract and Retain Top Talent
Offering a high-quality, low-cost 401(k) plan is crucial for attracting and retaining top employees in today's competitive job market. Many job seekers expect a robust 401(k) as part of their benefits package. A subpar plan could cause prospective hires to favor other employers and lead to higher employee turnover.
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The labor market in the last 5 years has shifted significantly compared to historical norms. Employees are far less likely to stick with their company over the long term. However, when employees see that their employer is actively looking out for them, and when they see that they are on track for their retirement goals with their current level of income and growth projection, they are far more likely to stay with their current employer.
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Boost Employee Retirement Readiness
High administrative fees erode employees' 401(k) account balances over time, significantly reducing their retirement savings. Lowering fees allows more of their contributions and investment returns to compound tax-deferred. An improved plan helps employees better prepare for retirement.
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Potential Tax Credits and Deductions
Small businesses may qualify for up to $500 per year in tax credits for the first three years of starting a new 401(k) plan. Any employer contributions made to employees' accounts are also tax-deductible business expenses.
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Fiduciary Protection
Hiring an expert 401(k) provider that acts as a 3(16) plan administrator fiduciary can help reduce an employer's administrative burden and legal liability in operating the plan compliantly.
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Employee Satisfaction and Retention
Offering a quality 401(k) plan demonstrates that the company values its employees' financial wellbeing. This can boost employee satisfaction, loyalty and retention.