401(k) Insights is our monthly newsletter, which was created specifically to assist business owners and plan administrators in navigating their retirement plan requirements. If you have any questions, please contact us anytime. 

How do you attract and retain talent in a competitive job market? In this edition, we will touch on a few important considerations related to the potential impact of offering a match in your company’s 401(K) plan.

Here are some important points to consider.

In a competitive job market, a 401 (k) match can be a significant differentiator. Prospective employees often compare benefits when choosing between job offers, and a generous retirement plan can attract high-quality candidates looking for stability and long-term benefits.

- Financial stress can negatively impact employee performance and satisfaction. A 401(k) match helps employees build their retirement savings, contributing to their long-term financial well-being and reducing stress, which can lead to higher productivity and loyalty.

- A good employee retention strategy can save a small business a significant amount of money, both directly and indirectly. The costs associated with employee turnover can be substantial and include costs related to recruitment, training, lost productivity and customer satisfaction.

Offering a 401(k) match is a powerful tool for enhancing employee recruiting and retention. It contributes to employees' long-term financial security and increases job satisfaction and loyalty. While the precise impact on retention rates can vary, the overall trend indicates that companies with competitive retirement benefits, including matching contributions, are more successful in retaining their employees.

Are you confident your plan is compliant and maximizing your benefit? We can help. If you’d like a complimentary review of your retirement plan, please click this link and provide some basic information.