Employers are constantly looking for ways to attract the best possible talent. And with the booming economy and tightening labor market, hiring the right people is a more difficult proposition than it has been in a long, long time. So what is a competitive employer to do?
Prospective employees are looking for a lot of things ranging from solid compensation and benefits to a variety of intangible rewards. At the end of the day though, it is compensation and benefits packages that tend to win the day. Companies willing to pay for top talent have an easier time recruiting.
Below are two benefits that just might tip the recruiting scales in your favor. If you have questions about finding affordable solutions, give us a shout. Our innovative solutions allow companies of all sizes to offer competitive benefits packages without breaking the bank. We would be happy to discuss the options with you.
1. The Vaunted 401(k) Plan
Retirement plans were offered mainly as pensions until the early 1980s. Then we were introduced to the 401(k) plan, a plan that became the de facto standard as companies attempted to phase out more expensive pension plans. Yet the vaunted 401(k) has taken a beating over the last 15 to 20 years. That is unfortunate because 401(k) plans are still great retirement vehicles.
A 401(k) plan differs significantly from a pension in that the benefits derived are not guaranteed. What a person gets out of his or her 401(k) relies almost entirely on the investments purchased with that money. Thus, a 401(k) retirement plan requires that investors be active rather than passive. They must take an active role in determining what they invest in rather than simply signing up for plan and forgetting about it.
So how can a 401(k) plan tip the recruiting scales in your favor? By giving prospective employees a future benefit wrapped up in a tax-free investing package. Remember that 401(k) plans are funded by pretax dollars. Your employees contribute so much from their paychecks and you kick in some matching funds. No taxes are collected on that money in the year it is earned.
Let's face it; pensions are all but dead in the private sector. They are just too costly to maintain. But prospective employees looking to work for your company still want some sort of retirement plan to invest in. They do not want to be left high and dry when they reach retirement age.
2. Health Savings Accounts
The health savings account is a huge benefit in the age of the Affordable Care Act. Also known as HSAs, these accounts are tax-free accounts that employees can use to cover some of their healthcare related expenses. They are available to workers already enrolled in high deductible health plans as defined by the federal legislation.
Both you and your employees can contribute to HSAs. Neither of you pay taxes on that money. As an added benefit, any monies not used to pay qualifying healthcare expenses can be removed from an HSA and placed in an employee's retirement fund. In essence, this gives employees an opportunity to set aside money for health expenses without fear of losing it should they not have to spend it. They can just roll it into their retirements.
Both 401(k) plans and HSAs seem like such a little thing, but they can tip the recruiting scales in your favor. Know this as well: neither benefit has to break your budget. We invite you to contact us right away to learn about how you can provide these benefits using an affordable, modern solution.