In the competitive arena of small business recruitment, offering robust benefits packages can be the key to attracting and retaining top-tier talent. Among the array of perks and incentives, 401(k) plans stand out as a cornerstone benefit, offering employees the opportunity to secure their financial futures while simultaneously bolstering a company’s appeal in the talent market.
In recent years, the landscape of 401(k) plans for small businesses has evolved dramatically. No longer the exclusive domain of large corporations, affordable 401(k) plans have become increasingly accessible to businesses of all sizes, thanks to targeted offerings and tax credit programs like the SECURE Act 2.0. As a result, this powerful tool for attracting high-caliber candidates is more accessible than ever for small business owners.
Communicate Your 401(k) Plan to Attract Job Applicants
The importance of ensuring that prospective candidates are aware of the 401(k) offering cannot be overstated. In today’s job market, where skilled professionals have a myriad of employment options at their fingertips, the presence of a comprehensive retirement savings plan can serve as a compelling differentiator, setting a small business apart from its competitors.
Use these 7 tactics to ensure potential job applicants know about your 401(k) plan:
1. List your 401(k) on job board postings: When you have a job opening, list your 401(k) benefit as part of the job description, including it anywhere you post the job, such as job boards, website listings, and anywhere the open position is advertised.
2. Promote the 401(k) plan as part of your employee referral program: Encourage your employees to promote the retirement plan on their personal and professional social media networks.
3. Create marketing materials for your 401(k): Provide written and online materials detailing your plan’s key features and advantages. Distribute these materials at trade shows, job fairs, and during individual job interviews.
4. Create a retirement information center on your careers website and intranet: Offer comprehensive information and frequently asked questions (FAQs) to help employees and potential new employees understand how the 401(k) can help them retire more comfortably. Remember, retaining your employees saves you money and protects your culture.
5. Show, rather than tell: Illustrate the long-term financial benefits of 401(k) savings, emphasizing how pre-tax contributions reduce take-home pay and tax liabilities. Offer a retirement calculator so folks can see their retirement possibilities.
6 – Explain how easy it is to take advantage of the 401(k) plan: User-friendly retirement plan administration software is a must. When you partner with a payroll provider such as Asure with an integrated 401(k) solution, it’s incredibly simple for your employees to participate.
7 – Keep the lines of communication open: Maintain ongoing communication efforts. Provide regular updates on plan benefits, enhancements, and annual contribution changes to keep employees engaged. Offer monthly updates showcasing savings progress and growth, and make sure there’s someone available to answer questions about the plan and retirement savings in general.
A recent Charles Schwab survey revealed that 88% of today’s workers consider 401(k) a must-have benefit. Don’t miss out on an opportunity to communicate that your business has this key benefit.