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Strategic Benefits of a 401(k) Plan for Smaller Businesses

401k plan benefits

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:

  1. According to Human Resources Expert and Management Consultant Susan Heathfield, offering better benefits adds on average, 7.3% to a company's profits.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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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