The Advantages of Offering Employees a 401k Plan

What are the benefits of offering a retirement plan to employees? If you run your own company and have been considering ramping up your current Employee Benefits package, you may have thought about adding in a new type of retirement plan. For example, you may have wondered, Is 401k good for an employer to provide? The good news is that you may be on the right track – offering a 401(k) retirement plan is often a popular move with employees, and may bring other benefits, such as higher retention rates and more. If you’re interested in learning more about these advantages, take a look at the following points.

Your Employees May Feel Appreciated and Be Likelier To Remain With Your Company Long-Term

Perhaps one of the top reasons to consider implementing a 401(k) plan at your company is that it’s often a highly sought-after benefit that leads to employees perhaps wanting to stay with your business. You may notice that offering a 401(k) could:

  • Make your business more competitive to retain talent
  • Boost worker morale
  • Help employees feel that the company appreciates them and invests in them
  • Increase the chances of keeping employees at the company long-term

It Can Beef Up Your Benefits Package and Offer Employees Key Advantages

There are several intangible benefits that a 401(k) can provide to your employees. Among these benefits are perhaps:

  • Tax advantages
  • Incentives to save money
  • Opportunities to earn a company match

However, a 401(k) plan doesn’t usually stand alone. In fact, most companies use it as a way to beef up their existing benefits plans. You can offer this retirement option as a complement to other key employee perks, up to and including:

  • Health insurance
  • Dental and vision coverage
  • Paid vacation days
  • Company-wide discounts
  • Yearly bonuses and pay raises
  • Life insurance
  • Maternity and paternity leave

Fill In the Gaps Beyond State-Required Retirement Plans

In some states, your company may already be required to comply with state-level retirement plans. For example, you may be required to place some cash into employee pensions every month or year. By offering a 401(k) plan in these states, you can expand your employees’ retirement options and give them a wider financial safety net. Providing a 401(k) could:

  • Offer employees a strong investment and savings option
  • Fill in financial gaps potentially left by state-required plans, such as retirement pensions
  • Incentivize older workers to stay with your business

For many businesses, providing a 401(k) retirement option as part of a comprehensive Employee Benefits plan is a smart move that can lead to better employee satisfaction and retention rates. If your company is reviewing its retirement offerings and is thinking about implementing a 401(k) plan, knowing about these advantages could help lead you to the best decision for your business. Review these benefits now and consider starting a 401(k) for your company.

About Haughn & Associates

Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.