How You Can Use Your Retirement Plan as an HR Recruiting Tool

Today finding quality employees is harder than ever. You and your competitors are all looking for the perfect match, but with so much competition out there, it can be hard to be sure that your business is getting the cream of the crop.  

What sets your business apart? Many companies are offering top-tier benefits to attract employees, such as more personal time off, improved insurance benefits, work-from-home options, and more.  

However, one of the most overlooked benefits is a high-quality retirement plan.  

All business owners know that offering an excellent 401(k) plan is essential for attracting excellent employees. Yet only 42% of small businesses offer retirement benefits.  

Further, 4 out of 5 employees said they wanted improved benefits and perks more than a pay raise. 

So, how can your business use a retirement plan to attract employees? Keep reading to find out! 

Use Your Retirement Benefits as a Recruiting Tool 

If your small business is struggling to find workers, then showing off your retirement benefits may be the answer.  

If you are worried about increased competition for talent, then you are not alone. 81% of employers share your concerns.  

The two features employees most value is: 

1. Matching contributions 
   
   
2. Eligibility and vesting  
   
   

Here’s how employers stacked up: 

• 83% offer matching contributions 
  
  
• 80% offer matching contributions of at least 3% 
  
  
• 40% fully vest plan participants immediately upon enrollment 
  
  

As you can see, many employers understand the value of quality savings and retirement plans, but there is room for your business to demonstrate that it is a cut above.  

This is especially important considering less than 50% of Americans feel confident they have enough money to live on through retirement.  

Let’s take a look at some fiduciary responsibilities that a company with an excellent retirement plan will offer.  

Fiduciary responsibility 

The IRS defines the following fiduciary responsibilities: 

• Acting solely in the interest of the participants and their beneficiaries. 
  
  
• Acting for the exclusive purpose of providing benefits to workers participating in the plan and their beneficiaries and defraying reasonable expenses of the plan. 
  
  
• Carrying out duties with the care, skill, and diligence of a prudent person familiar with the matters. 
  
  
• Following the plan documents. 
  
  
• Diversifying plan investments. 
  
  

In essence, their responsibilities include overseeing investments and service providers, conducting educational resources to help your employees understand their options, and administrative functions, review of plan documents, and documentation of the fiduciary process.  

How to make changes 

If your company’s retirement benefits are behind where you want them to be, then it is time to make some improvements.  

Here are five ways you can take a step forward: 

• Define your contribution plans. What do you want to accomplish? Where do you stand and where do you want to be in five years? 
  
  
• Define your benefits plan. What benefits do you offer? What are some added benefits you can offer in the future? What pre-existing benefits can you improve upon? 
  
  
• Foundations and endowments. How have you developed and implemented strategic spending? What are your investment policies to help you meet institutional goals? 
  
  
• Individuals and trusts. What is your time horizon, risk tolerance, tax status, income needs, and other considerations to help you reach your goal? 
  
  
• Retiree readiness. How are you already helping your employees? How can you further help your employees be ready for retirement and improve their fiduciary success? 
  
  

SOCA Helps Your Small Business Improve its Retirement Plan 

There are steps you can take that will make a big difference. 

One of the best ways is by working with SOCA. SOCA has partnered with Newport Group to offer employers an easy and affordable solution to retirement. 

Right now, 52% of private-sector workers have no access to a retirement plan. Further 90% of the 5.8 million small businesses in the US do not offer their employees a retirement plan. 

In response, SOCA uses a pooled retirement plan called SOCA PEP. 

 

A PEP is a new kind of 401(K) with many advantages for businesses big and small. Employers "pool" together similar to the SOCA Benefit Plan MEWA. Employers can enjoy the benefits typically reserved for larger plans without the hassle of running a plan. 

Is your small business taking advantage of the SOCA PEP plan? 

If you are interested in using the SOCA PEP plan, then it is time to reach out to SOCA today.