Employers are always looking for ways to attract and keep the best employees. A popular way to do this, according to Bill Schantz, is by offering retirement savings plans (RSPs). RSPs allow employees to set money aside each month to save for retirement. There are pros and cons to offering RSPs to employees, so employers need to weigh the options before making a decision. Let’s take a look at some of the pros and cons of RSPs.
Bill Schantz Lists The Pros And Cons of Offering Retirement Saving Plans To Employees
Offering a retirement savings plan to employees can be a great way to attract and retain top talent, says Bill Schantz, but there are also some potential drawbacks to consider.
PROS
1. Attracts and retains top talent. Offering a retirement savings plan can help your business attract and retain top talent. Employees will feel more valued and appreciated if they know that their employer is helping them save for the future.
2. Helps you avoid turnover. Offering a retirement savings plan can also help you avoid turnover. Employees who feel financially secure are less likely to leave their jobs in search of greener pastures.
3. Builds morale and motivation. Retirement savings plans can also build morale and motivation among employees. Knowing that their employer is helping them plan for the future can make employees feel more positive about their jobs and inspire them to work harder.
CONS
1. It Can be expensive to set up and administer. Retirement savings plans can be expensive to set up and administer. If your business is on a tight budget, you may want to consider other options for employee benefits.
2. It May not be suitable for all businesses. Retirement savings plans may not be suitable for all businesses. For example, if your business is seasonal or has a high turnover rate, a retirement savings plan may not be the best option.
3. Employees may not participate. Even if you offer a retirement savings plan, employees may not participate. Some employees may not understand the benefits of saving for retirement or may simply forget to contribute to their accounts.
When deciding whether or not to offer a retirement savings plan to employees, Bill Schantz recommends weighing the pros and cons carefully. Consider your business’s needs and budget before making a decision.
Bill Schantz’s Concluding Thoughts
Offering retirement saving plans to employees can be a great way for businesses to help their workers save for the future. However, there are some pros and cons to consider before deciding whether or not to offer a plan. The pros of offering a retirement savings plan include helping employees save for the future, providing tax benefits, and encouraging employee engagement. However, there are also some potential drawbacks to offering a retirement savings plan, such as administrative costs and the possibility that employees may not contribute enough. According to Bill Schantz, businesses should weigh the pros and cons of offering a retirement savings plan before making a decision.