Have you had trouble hiring and retaining good employees over the years? If so, you’re not alone.
There is no magic formula that will ensure that your employees stay with your company. Nor is there a foolproof way to hire people that you know will be good workers.
That being said, there are some tried and true ways to keep employees happy and to compel them to choose your company over one of the others they may be considering or interviewing with.
Of course, you want to create a friendly atmosphere where your employees feel at home. Also, you need to offer competitive pay that will help your team pay for their rent, food, and anything else they need in life.
Beyond the day to day work environment, you’ll also want to make sure that your workers don’t feel overly stressed and that they can enjoy their time both on the clock and off the clock.
Besides those major considerations, you’ll also want to consider implementing a retirement plan that provides security for your employees’ futures.
Many younger workers report anxiety when thinking about their future and their finances. There are tons of reasons why a person’s future may not feel secure, and those issues have seemingly increased over the past few years.
But you can help reduce these fears about retirement by creating great investment opportunities.
Some of the major retirement plans available to small businesses include:
Simplified Employee Pension Plans (SEP).
If you want to keep your plan basic, you will likely want to choose an IRA plan for your small business. SEP IRA plans are those that rely completely on employer contributions. The business owner decides whether or not he or she will contribute to employee plans each year, and how much he or she will contribute.
For those who are self-employed and those with a few employees, this plan works very well.
Savings Incentive Match Plan for Employees (SIMPLE) IRA Plans.
Another IRA plan is the SIMPLE plan. This option is reserved for companies that only employee 100 (or fewer) workers. Therefore, if you have plans to grow beyond this number of employees, you’ll want to look elsewhere.
But if you run a small company, and plan to continue to do so, the SIMPLE IRA is easy to maintain and doesn’t require any yearly testing to check for discrimination.
401k plans are often preferred by many businesses large and small because of the level of flexibility afforded by these plans. The tax options are flexible as well as the investment opportunities. Not to mention, 401k plans tend to offer very high contribution maximums as compared to other plans.
401k plans work well for single-member operations, small companies, and businesses with thousands of employees.
Don’t Wait to Start Your Small Business Retirement Plan
Undoubtedly, you’ll want to research small business retirement plans and determine what will work best for you. But don’t wait too long! The quicker you start your plan, the quicker you can start hiring and keeping high quality employees.