Companies know how tough it can be out there in the talent market. Just when you think you've got a handle on things, another company swoops in with a shiny new offer. So, how do you, as HR leaders and benefits plan sponsors, keep our best people and attract the right new faces?
For employees, it's not just about the salary anymore. Competitive pay is crucial, of course. But what really makes a difference is a solid retirement plan over and above compensation. For small to mid-sized enterprises (SMEs), a well-thought-out retirement plan can be a total game-changer.
Why Retirement Benefits are Becoming a Key Differentiator
- Employees are thinking long-term: People are thinking beyond the paycheck, into their future. They are thinking about financial stability, and yes, about retirement. A strong retirement plan shows you care about their long-term goals, and that resonates big time.
- Trust is everything: When your team knows you're helping them build a secure future, it builds trust. And trust? That breeds loyalty. In today's world, with all the economic ups and downs, that peace of mind is invaluable.
- Happy employees are productive employees: Financial stress is a major drag on productivity. If your people are worried about money, they're not focused on their work. A good retirement plan can lift that burden and let them shine.
What Makes a Retirement Plan a Great Retirement Plan?
Retirement is not just about having a plan, it's about having the right plan. Here's what to focus on:
- Put some skin in the game: Meaningful employer contributions – whether it's matching RRSPs or a defined contribution plan – show you're serious. Even smaller companies can make a big impact with competitive matching.
- Give them options: Everyone's different. Offering a variety of investment choices lets your employees tailor their plan to their own comfort level. And don't forget to make it easy with user-friendly digital platforms.
- Educate, educate, educate: A plan is only good if people understand how to use it. Regular workshops, one-on-one sessions, online resources – whatever works for your team. Investing in financial education shows you genuinely care.
- Think big picture: Retirement benefits should be part of a larger wellness package. Consider things like flexible work, mental health support, and extra time off. A holistic approach shows you're invested in the whole person.
The Retention Payoff
At the end of the day, a strong retirement plan isn't just a nice-to-have, it's a strategic investment. When your employees feel supported financially, they're much more likely to stick around. This means less turnover, lower recruitment costs, and keeping all that valuable institutional knowledge in-house.
Plus, a great plan attracts great people – the kind of forward-thinking professionals who are planning for their future. Retirement benefits can really set you apart. By offering meaningful contributions, flexible options, ongoing education, and a holistic approach to wellness, you're creating a compelling offer that speaks to your employees' long-term goals. And that? That's how you build loyalty and drive success.
Want to dive deeper into the data and get some actionable steps to optimize your retirement offerings? Download our Next paper for all the details. We cover detailed statistics, case studies, and actionable steps to optimize your retirement offerings. Let us help you deliver retirement benefits that truly stand out!