Retirement Plans Have Many Advantages For Small Firms
There are a variety of incentives employers can offer to improve workers productivity and retention levels in a tight labor market. But as far as small businesses are concerned, offering a retirement plan appears to significantly improve employee retention levels and work performance.
Eighty-five percent of small-business employers who offer a retirement plan said it helped their companys recruitment and retention efforts, according to a recent survey jointly sponsored by Matthew Greenwald & Associates, the Employee Benefits Research Institute and the American Savings Education Council, all of Washington, D.C.
Another 85% said offering a retirement plan helps improve employee attitude and performance.
However, significant portions of small employers do not provide retirement packages for their employees. The U.S. Department of Labor reports that only 46% of small-business employees are offered retirement plans.
“There are a number of reasons [for this],” notes Ruth Helman, senior research associate at Greenwald. “Employees prefer better wages to other benefits, and employers revenues are too small to offer the plans.”
Matthew Greenwald, president of Greewald, says in a statement, “American employers need to re-evaluate what they are offering their employees.