Mutual Benefits: Building a 401(k) Plan for Ultimate Recruitment and Retention
The job market today urges companies to offer competitive benefits. To stay competitive, it’s important to spend as much time as possible focusing on your business, not managing benefit plans. Partnering with a retirement plan specialist can help businesses design a 401(k) plan that supports your recruitment efforts without causing more administrative work that takes away from business management.
It can be tough to justify adding extra expenses to a business’s bottom line in the form of benefits, but building a strong 401(k) plan comes with advantages for business owners as well. Learn how to build a 401(k) plan that benefits both your business and your employees:
What to consider when creating a 401k plan
When developing a plan, it’s important to evaluate the expenses associated with each feature or requirement you elect in order to ensure you and your employees find an affordable option. Budget for startup costs, employer contributions, such as a match or profit-sharing, and plan administration fees. You may have higher or lower costs based on the specific needs of your business including: the number of participants, turnover rates and average balances.
Our team will also help you understand the newly offered tax credit for small employer pension plan startup costs from the IRS, which can cover up to $5,000 per year, for three years.
What to look for in a provider
When searching for a 401(k) provider, work with an institution with a specialized 401(k) team that understands plan offerings and how to manage choices, and with the expertise to create and administer the plan according to your needs. A consultative advisor can help you create a plan that fits your budget and the best candidates are happy with, and can also help educate your employees, contributing to strong recruitment and retention that pays off for years to come.
As an owner, you naturally wear many hats, but at the end of the day, you need to focus on generating revenue. The right provider should administer your plan, including a seamless transition for your employees, conduct a plan education program and prepare you to meet annual testing requirements. Be sure to verify that your 401(k) advisors are independent fiduciaries, so recommendations are always made in your best interest.
Connect with an advisor today
There are many benefits to take advantage of when working with Enterprise on your 401(k), including:
- Personalized financial advice
- In-person consultative meetings
- Enterprise takes fiduciary responsibility for fund recommendations.
- Experts dedicated solely to 401(k)s
If you have a 401(k) plan in place, an Enterprise 401(k) expert will sit down to look at your plan for no cost to ensure you understand it fully, including the fees you and your employees are paying. Connect with one of our experts today to learn more.
