Setting up your employee benefit plan is an important step in creating an attractive offer for your new and existing employees. This plan can encompass many different features including healthcare, time off, and, of course, the retirement plan many employees seek out. When an employer, works to put in place such a plan, it is important employees and employer come together to decide what the most sought after features are. There are several key things to consider when choosing the right plan.
Choose the Type of Retirement Plan Employees Want
A good place to start is with the right type of retirement plan. To add this to your employee benefit plan, you need to know what key features employees want. For example, a 401k plan allows employees to deposit funds into their retirement accounts as pre-tax dollars. This means the money grows tax-free for most of their working career and is only taxed when they use the money during retirement. It’s an affordable but very flexible plan.
Consider Giving Them Advice and Guidance
As an employer, it is rarely the place of the business leader to offer financial advice. However, a key part of your employee benefit plan can be to provide insight to your employees through a consultant. That is, utilize a financial consultant that can aid the employee in making the best decisions for their needs.
An employee benefit plan should meet the expectations of the employees themselves. To achieve this, it is often necessary for employers to reach out to the key employees within the organization to determine what’s most valuable to their needs and long-term goals. This may be cost effectiveness, help with making plan decisions, or just offering the right type of tax-free or investment opportunity. Customizing a plan is a critical part of the process.
