The holidays are quickly approaching, and although they will look a little different this year, that isn’t stopping individuals from participating in the upcoming gift-giving season. Most employers try to look for ways to give back to their employees to show their appreciation, such as a holiday bonus, a holiday party, or even a gift.
Although all of these ideas are great, they’re all short term. That’s why, this year, give them the gift that keeps on giving — literally! A 401(k).
Planning Ahead With A 401(k)
Employees like to feel appreciated and know their employer is invested in them. Providing employees with the opportunity to open a 401(k) is the perfect way to do this. As a small business owner, you may find it difficult to provide competitive benefits or gift employees around the holidays, but offering an employer-sponsored 401(k) can easily make up for it.
In helping to set them up for financial success later in life and be prepared for when it comes time to retire, your employees will feel more valued knowing that you’re thinking about them in the long-term. This will also help increase employee retention, especially if you’re able to offer a competitive matching program.
A 401(k) Is A Gift That Keeps On Giving
Not only is their 401(k) plan giving them an opportunity to begin their retirement savings, but also allows them to continuously contribute toward their savings. After all, that is what a 401(k) is meant for.
It’s not uncommon for people to struggle with finding the discipline to save a portion of their paycheck each month, or to not dip into their savings at all. Since 401(k) contributions are deducted automatically from a paycheck, employees don’t worry about finding that discipline.
As a result of contributions being made on a continuous basis, a 401(k) will continue to grow as more money is being invested. Your employees will thank you for this gift that keeps on giving once it’s time for them to retire and withdraw from their accounts.
401(k) Plans Can Be Budget-Friendly
Finding gifts for your employees is expensive and stressful on your budget, especially if you’re a small business owner. The great thing is that 401(k) plans don’t have to cost you anything, making it a budget-friendly gift option.
Along with saving money through opening a plan with an affordable provider, there are also tax credits you can claim. Under the SECURE Act, eligible small businesses can claim up to $5,500 in tax credits for retirement plan startup costs, as well as for adding an automatic enrollment feature to a new or existing 401(k) plan. It’s clear to see that your employees won’t be the only ones benefiting from a new retirement plan!
Forget spending money on short-term gifts. Offering a company retirement plan this holiday season is the best way to show employees you care, all without having to break the bank.
Ready to get started? Contact us today to see how we can help you give the gift that keeps on giving at no cost to you!
Photo by Amy Hirschi on Unsplash