Use Retirement Benefits to Get and Retain Employees

Patchwork Future
Employees just don�t have the luxury of relying on one job to provide them with security in their golden years. Most will be lucky if they�re not laid off at some point during their lifetime. Time off without pay can turn any warm investment blanket into a patchwork quilt that just won�t cover retirement. So what can you do to alleviate this I-may-have-to-work-for-the-rest-of my-life stress? Offer a retirement plan as part of your employee benefits package.  

Many job candidates are looking for the fastest path to high salaries, expense accounts, and stock option bliss. But if you look at the advice of employee retention experts, you�ll find that money is not the only objective. Not everyone is climbing the corporate ladder; some are even rappelling down it. 

Down Comforter
As a small business owner you can offer employees many unique opportunities that aren�t available in the corporate world: the experience of wearing many hats, the chance to create their own job description, and more flexibility. Prospective employees, however, may not be tempted to join your ranks unless you have some sort of retirement plan in place.  

Balance is the catchword of the new millennium. People want to combine work, family, and friends without crashing and burning before they hit 40. And they want to feel comfortable with their retirement options along the way. If you start out your employee relationships by looking out for their future, you�ll probably discover them making a daily investment in yours.  

Magic Carpet
You�re probably familiar with 401(k) plans that offer employees the option of contributing up to 15 percent of their salary as long as it doesn�t exceed a certain figure. Companies generally contribute a certain percentage for employees who participate in this plan. Although this may be what you�re employees are expecting, there are other options that may be better suited to your small business budget. 

Many small business owners are opting for a less complicated solution: the Savings Incentive Match Plan for Employees plan (SIMPLE plan). Like, a 401(k) plan, the SIMPLE IRA removes the temptation to spend since reductions are made before employees ever receive their paychecks. Small business owners also contribute funds when using this plan.  

Other options to consider are several simple employee pension (SEP) plans. Employers who use SEP plans take all the contributing power out of their workers hands and put it in their own. Employees cannot contribute any funds to SEPs. But although employers contribute all the money, the plans belong solely to the employees. One version of the SEP does allow for employee salary contributions, but a plan must already be in place to utilize this option. 

Employees in today�s job market have a precarious future. They never know when someone�s going to release the sliding floor out from under them. Providing job candidates with some shelter from this ever-present financial danger will give you an edge over the competition. These benefits may not be a magic carpet but they�ll sure give your employees a well-deserved lift. For more information about retirement benefits you can offer your employees contact a MostChoice.com advisor.

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