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Free Newsletter>
Employee Retirement Plans
Cash is not enough today to recruit and retain top talent
for your business. Providing an retirement plan is now just
as important.
At a relatively modest cost, employer-provided retirement
plans can improve overall company morale and make a
business more attractive to current and potential
employees.
It's critical to recognize just how important a competitive
retirement plan can be in recruiting the best staff
possible. Gone are the days when salary in and of itself
was lure enough.The fact of the matter is, if you don't
have a retirement plan for your employees, you likely will
lose them to an employer who does.
Retirement plans give employees the chance to set aside
some of their wages tax-deferred, producing an immediate
benefit in terms of reducing current taxable income and
income taxes.
Retirement plans also offer an opportunity to hang onto
valued employees. Competitive salons or spas, whether they
are big or small, with benefit programs will be able to
attract employees away [from you] --if you don't provide a
retirement plan.
Who pays for all of this?
One way or another, someone has to foot the bill for your
employee retirement plan. However, it doesn't have to be
you who picks up the entire check. You could even pass on
the entire cost to your employees.
You should offer however match or contribute some
additional portion to what your employees put in, with the
stipulation that the money will mature over a certain
period of time. Employees don't automatically have access
to the money that employers contribute to these plans.
Vesting rules can require that employees work for the
employer for a particular amount of time before being
entitled to employer contributions that have been made to
the plan.
Communication matters, too
Once you've arrived at a plan that suits both you and your
employees, let your staff know about it. They need to
realize you are spending money on these things and know
that it is a benefit for them even if they choose not to
participate.
I recommend taking this level of awareness a step further
and providing an itemized list with yearly tax statements.
This way, the employees will know just what they're getting
and what you've spent on them.
The bottom line is that the more informed employees are,
the more comfortable they will be with employee retirement
plans - that usually translates to higher contributions -
which is a winning situation for all.
Call us to discuss a retirement plan that is right for your
salon or spa 248.546.4312
theSECRET Salon & Spa by Design Royal Oak, MI 866.288.7353
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