Do you really know what benefits your employees want?
When it comes to employee benefits, a defined contribution plan is the second most desired benefit after health insurance. A recent survey from the Transamerica Institute asked employees and employers about the most valued benefits and 89% of employees said a retirement plan was somewhat or very important to them.
The disconnect is that only 55% of employers thought a retirement plan was an important employee benefit! Looking at the spectrum of benefits, it’s clear that employers underestimate how important good benefits are to their employees.
Image Credit: Transamerica Institute 2022
Could it be that in a cost/benefit analysis that employers do not see value in offering a benefit like a retirement plan? When asked whether a retirement plan was important to attracting or retaining employees, only 39% of employers agreed – this despite the fact that 47% of employers said they have had difficulty recruiting.
Sure, most employers will have to make choices about what benefits to offer. Employees may want it all, but employers must consider the financial and administrative costs. Things like pet insurance might be the first on the chopping block!
Still, this seems like a missed opportunity for employers. Those employees surveyed clearly valued and desired a retirement plan – above all other benefits except health insurance. Other industry data reveals that most employees with access to a retirement plan will participate.
Offering a retirement plan to your employees is a great way to show them that you care about them and their financial future. Indeed, employers may play one of the most important roles in helping the average American save for retirement.
There are tangible benefits for employers though too! A well-designed retirement plan can be a good recruitment and retention tool, may provide tax breaks to the company, as well as offering the business owners themselves a way to save more for retirement.
Many employers get hung-up on how difficult or costly it might be to setup and maintain a plan, but the truth is that there are turnkey options available to make it a painless, cost-effective process, even for small businesses.
Wouldn’t you like to give your employees a benefit they really value? We can help! Give us a call to learn about our Kingdom(k) and Kingdom(b) retirement plans and the 3(38) fiduciary, faith-based investment strategies, and other services we provide.