The quality of employees can make or break small businesses, and the best employees are attracted to companies that offer a 401(k) retirement plan. Yet, among businesses with fewer than twenty-five employees, only 29% offer such a plan.
Download this free whitepaper from Paychex to learn more about the correlation between small business success and 401(k) plans, including:
- According to Human Resources Expert and Management Consultant Susan Heathfield, offering better benefits adds on average, 7.3% to a company's profits.
- Employees' perceived value of 401(k) retirement plans ranks high among benefits, as only about one in five workers believes that they are adequately preparing for retirement.
- With so few small companies offering retirement plans, those that do gain a competitive edge in their ability to attract and retain the best people.
- Employees who work for companies that offer 401(k) retirement plans are often reluctant to move to companies that do not, reducing the available talent pool.
- Small businesses sometimes feel that they are not profitable enough to offer a 401(k); but growing profitability is hindered when employees do not feel valued and "enfranchised" by ownership.
- Cost is often cited as a reason for not offering not 401(k), but in fact, a 401(k) plan is one of the lowest-cost and highest-value benefits an employee can offer.
- Administrative functions can be outsourced to providers like Paychex in order to reduce company cost and complexity, and to get a plan up and running quickly.
In summation, no matter the size of your small business, Paychex can put you squarely in the forefront of companies that successfully use benefits as a competitive advantage.
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