Losing your best employee is like a punch in the gut for a small business owner. But with fierce competition for the best people, how can you compete? Lost productivity and time spent landing a replacement are painful, but the overall cost of losing a good employee may be way more than you think. In a review of 30 individual case studies, the cost of replacing just one teammate was found to range from $3500 to well over $10,000.
What’s a small business owner to do? Get serious about a 401(k) plan.
That’s right. 401(k) plans are not just for big business. Properly structured, a 401(k) can help minimize turnover, while providing you, the owner, with the potential for attractive tax benefits too.
In fact, owners can sponsor a plan that allows them to put away $60,000 pre-tax. Of course, cost is a big concern with 401(k) plans, and rightfully so. Many 401(k) plans have expensive, out-dated and murky fee structures. On top of being expensive, many plans are also far too cumbersome and poorly serviced. There is an alternative.
Corporate Payroll Services provides a breadth of 401(k) solutions that range from startup to multi-million dollar plans. Our 401(k) partners focus on small businesses, servicing tens of thousands of plans across the country. Technology has trimmed costs down to levels that even small businesses can afford. Plan expenses vary with each customer, but if the cost of one lost employee exceeds $3000, $5000 or even $10,000, then this is an option that demands consideration. If a new or re-structured plan helps save just one good employee, the return on investment is more far-reaching than just the financial win.
Time is running out, though, to set up certain types of plans for 2017 or transfer plans to coincide with the new year. Contact us to schedule time to speak with one of our retirement plan experts today and get a no-commitment projection on how a plan might work for you. What do you have to lose, except maybe another employee?
Actify Investor Retirements, LLC dba Corporate Payroll Services. Investment advisory services provided by Actify Investor Retirements, LLC. Actify Investor Retirements, LLC is a Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein.
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