These days, it’s more important than ever for successful businesses of all types to attract and retain the best, most talented employees. For medical practices, where expertise, attention to detail, and professional acumen are the most important stock in trade, it’s even more crucial to find and keep the best people. After all, your practice is only as good as the quality of care provided by you and your team. Now, more than ever, you need the best, most qualified, most talented employees you can find.
In survey after survey, workers report that the availability of a company-sponsored retirement plan is a major factor in their decision to accept or remain in a job. Not only that, but once in the job, almost 66% of employees say they would rather have new or additional benefits than a pay increase. So, it just makes sense that one of the most effective ways to show that you have your employees’ best interests in mind is by offering a robust retirement plan. Consider the following advantages offering a 401(k) plan can have for your practice.
Attracting and Retaining the Best Employees
As mentioned above, in a competitive recruiting environment, a solid, well-designed 401(k) can be a critical factor in the decision-making process for the best candidates—and also for hanging onto the employees you depend on the most. By incorporating features like employer-matching contributions, you can give your best people even more reasons to stay with you and provide a persuasive reason for top prospects to join your team.
Enhance Employee Loyalty
Offering a competitive 401(k) plan can also create an atmosphere of greater loyalty in your practice. A recent survey by Charles Schwab found that 90% of workers consider an employer-sponsored retirement plan as a must-have. After all, when employees feel secure about their financial future, they are more likely to be productive and engaged in their work. A well-structured 401(k) plan can help provide peace of mind, knowing they are building a nest egg for their retirement. This sense of financial security often translates into higher morale, increased loyalty, and improved performance across the board.
Greater Tax-Efficiency
A 401(k) plan can also offer bottom-line financial benefits for your practice. Not only will plan participants gain the advantage of tax-free growth and compounding for their retirement funds, but as an employer, you may also be able to obtain a tax deduction for employer matching contributions. Depending on the specific type of plan offered, you and your employees may also be able to deduct plan contributions from your taxable personal income.
Increased Employee Engagement
The professional financial guidance provided to plan participants by the plan administrator can be one of the most valuable aspects of your company-sponsored plan. By making ongoing financial education and planning regularly available to your participating employees, you will foster greater engagement and interest, likely accompanied by higher workplace morale and improved job performance.
Professional Guidance
And speaking of professional financial services, don’t forget that a quality 401(k) plan should include a plan administrator who can work closely with you and your tax and legal advisors to make sure your plan continues to operate at maximum efficiency. Remember, as your business and its 401(k) plan assets grow, so does the plan’s complexity. Ensuring that your plan complies with all regulatory requirements is essential to avoid costly penalties and legal issues. Working with a team of experts to regularly review and update your plan can help future-proof your retirement offering, ensuring it continues to meet the needs of your business and your employees as they evolve.
At Rothschild Wealth Partners, our success is built on the success of our clients. By gaining a thorough understanding of your needs, we are able to recommend solutions that are specifically designed around your most important goals. To learn more about our corporate retirement plan services, please visit our website.
