How to Position Your Retirement Benefit to Attract, Retain, and Reward Employees
April 21, 2022
Providing retirement benefits for employees helps organizations leave a positive impression on existing and future workers. While these benefits can attract and retain top talents, the multi-tiered processes involved may prove overwhelming for business owners and their HR team.
Compliance and budget can steer the effectiveness and validity of retirement benefits, and business owners should always practice a systematic approach to account for them at all times. For instance, some companies have gravitated away from traditional defined benefit pensions in favor of defined contribution plans with higher susceptibility to market volatility.
It is crucial for modern employers to determine specific goals before positioning their retirement benefit plans in the ever-shifting organizational landscape.
Attracting Top Talent
According to one market report by the American Institute of CPAs, 80% of employees valued worker benefits over salary. A retirement benefit can significantly improve the appeal of a job role by providing employees with valuable support for their long-term investments and financial stability.
Matching defined contribution retirement plans such as 401(k) and 403(b)s give employers added peace of mind when handling their retirement plans, raising overall satisfaction and reducing the risks of high turnover.
Employers should always check that their retirement plan decisions meet the latest industry and legal guidelines, subject to changes and revisions over the years. Partnering with the fiduciary experts at First Western Trust provides companies with reliable assistance in handling compliance issue corrections and monitoring regulatory updates without delay.
A survey by Willis Tower Watson found that 75% of new hires of an organization that offers 401(k) list retirement plans as a priority for staying with the company. These employees prefer retirement benefits over conventional workplace benefits such as pay raises and promotions.
However, retirement plans differ among the workforce due to varying factors. Reaching out to professional commercial banking services provides companies with access to customized regular employee education. Decision-makers can pair these sessions with cost and service analysis to determine the most suitable retirement plan based on specific company and employee needs.
By doing so, decision-makers can identify and resolve the retirement concerns of employees while working around business finances.
Rewarding the Team
Providing employees with an appropriate level of recognition contributes to a positive work environment. This drives individuals to improve their overall performance. A Gallup industry survey revealed that 37% of employees prioritized recognition over other organizational tactics that inspired team morale.
Retirement benefits may serve as an effective means of recognizing and rewarding employee contributions, promoting an employer’s interest in the personal well-being of staff. On a broader scale, the retirement-centered rewards enable business leaders to establish a strong company culture that focuses on people development, attracting top talent while providing a sense of belonging.
According to PricewaterhouseCoopers, only 36% of adult Americans feel that they have their retirement plans on track. Leveraging retirement benefits with peer-to-peer recognition can help raise the general awareness of post-career financial planning among teams.
First Western Trust’s retirement consultants provide customized employer group education. These regular sessions cover a wide span of essential topics that include budgeting, retirement planning, and regulatory updates to help decision-makers build effective employee packages while managing organizational risks.
Understanding the Basics for Positioning Retirement Benefits
While there are many organizational advantages to setting up a retirement benefit plan for employees, the planning and execution require careful consideration, potentially resulting in costly and complicated processes along the way, such as taxation matters.
Ideally, employers should have a basic understanding of various retirement plans before reaching out to a consultant, such as identifying the difference between qualified and non-qualified plans. Essentially, qualified plans fulfill ERISA guidelines and internal revenue code, which offers significant tax benefits.
On the other hand, employers usually apply non-qualified plans for deferred compensations as they do not fulfill ERISA guidelines and the internal revenue code, and therefore lack significant tax benefits.
Each retirement plan type comes with a set of employer requirements, and understanding these prerequisites beforehand enables consultants to recommend the most suitable positioning strategies and the steps needed.
First Western Trust – A Reliable Expert in Retirement Benefits
The retirement consultants at First Western Trust understand the difficulties organizational leaders face in implementing retirement benefits according to workplace budgets, industry compliances, and individual worker needs.
By reaching out to First Western Trust, companies can acquire a holistic retirement planning strategy customized to their priorities and the latest legal guidelines. Through detailed design and analysis, First Western Trust offers economic insights and innovative solutions for optimized results in attracting, retaining, and rewarding the most valuable stakeholders within the company – its employees.
The consultancy serves as a 3(38) fiduciary, providing the highest level of control and confidence in managing a plan’s assets, making the most crucial decisions for clients without delay.
Through collaborating with First Western Union, companies can look forward to leading commercial banking services that drive the best recruitment and employee arrangements while decision-makers focus on other critical areas of running the business.