While the remote working trend has been a welcome opportunity for employees, it has left many companies scrambling for talent. While in the past, companies could beat their competition with office yoga classes or draft beer, now employers must go beyond fancy perks to attract and retain the best employees.
One tool more businesses should consider is an employer-sponsored retirement savings plan, says Michael Horne, partner and co-founder of Meldrum Horne.
âFirst and foremost, retirement savings plans should be viewed as a key component of an organization’s overall compensation. These plans are an investment in your people, âhe says. âThere is a talent shortage, and in tight hiring markets, an employer-sponsored retirement savings plan could be the deciding factor between two opportunities. ”
While it often seems difficult to get the ball rolling, Horne reassures that these programs are easy to set up and will serve both incoming and existing employees.
âThis will position your business not only as a great place to work, but also as a place to grow and advance a long-term career,â he says.
Create financial stability
For many employees, saving for the future has become a top priority during the pandemic, raising questions such as: How much money would I need to retire?
âWhile there is no single answer, companies can make it easier for employees to invest through payroll deductions,â says Jamie Meldrum, partner and co-founder of Meldrum Horne. âContributions automatically deducted from gross income are the easiest way to pay you first, and these contributions can be matched by your employer. “
Employers have several options to choose from, such as defined contribution plans – in which both employer and employee contribute a percentage of salary – which can help employees achieve long-term financial growth.
âWhen you think of defined contribution pension plans, think of inheritance,â says Meldrum. âThe longer an employee contributes, the more he will receive. Employees will remember the company that helped make a comfortable retirement possible.
Employers can also choose a group RRSP option, which is not as restricted by pension legislation, and offers more freedom to withdraw money for incidental expenses before retirement.
âOnce we have identified the business philosophy and the most appropriate plan, we tender to the market and compare the proposals based on product, price, service, technology and l ‘assistance,’ says Meldrum. âWhen we find the right solution, the next step is to launch the program, which can be a really exciting time for an organization. “
A lasting connection
While an employer-sponsored pension plan can be a key competitive differentiator, these programs can also help businesses operate at a high standard, without disrupting employee turnover.
âIt’s not uncommon for employers to design these plans to recognize years of service,â says Horne. âRetirement plans can help employers get creative with compensation and reward employee loyalty. “
For example, an employer may choose to make a contribution of three percent for the first five years of service and then increase that contribution to five percent.
It’s also important to work with a provider who understands the specific needs of an organization and can help staff understand the advantages and benefits of investing in a group savings plan.
âPart of our job is to educate and make sure everyone is comfortable with how and where they invest,â says Meldrum. âThe goal is to raise awareness and improve financial literacy so that employees are well prepared when they retire, and employers can play a big role in that regard. “
Contact Jamie Meldrum or Michael Horne at Meldrum Horne for more information on employer sponsored retirement savings plans and find out how they can help your business attract and retain top talent. Visit: https://meldrumhorne.com