Top-Quality Plans with Retirement Plan Consulting
Rather than seek out retirement plan consulting, many employers offer a take-it-or-leave-it retirement plan design in a document from their payroll or other provider. They assume that a 401(k) plan is just a 401(k) plan, not paying attention to the details contained in it. After all, don’t we just have to say we have a plan?
Shrewd, strategy-minded employers often look at their retirement plans differently, as a way to better recruit and retain the talent they need to succeed in a competitive environment, both for their business as well as for top employees.
The first questions these shrewd employers ask themselves is how to link their retirement plan designs to the demographics of their current and future workforces, as well as their overarching HR strategies.
What generations do we have in our current workforce?
One client of ours was shocked to discover that over 60 percent of its current workforce was within five years of retirement age. Not that they expected everyone approaching age 65 to retire (in fact, they wanted certain employees to remain well past age 65) but they hadn’t considered that the bulk of their professional service talent might be leaving shortly. They had no strategies in place to replace them.
They realized too late that their ultra-rich defined benefit retirement plan made it more likely that many of their older employees would indeed retire soon, leaving a huge gap in their workforce.
How are we enticing future leaders of our organization to remain with us as we provide development opportunities?
Smart organizations identify and develop future managers and leaders early and throughout their career. But how do these businesses then entice future leaders with their compensation and benefit programs? A well-designed retirement plan that works for early, mid-, and late-career talent ensures that leader retention is key to organizational success today and in the future.
Does the retirement plan design encourage employee savings as well as organizational contributions?
In retirement plan consulting, a commonly seen element is an employer providing a matching contribution when employees choose to contribute. Think a 401(k), 403(b), or 457 plan design.
But, the type of contribution an employer may make can vary widely, from a safe harbor match to a safe harbor nonelective contribution to a “regular” match to a discretionary contribution. The strategic employer considers all of these against their business and HR strategies for recruiting and retention and chooses wisely amongst these options.
Can I provide different retirement benefits for various portions of my workforce?
Qualified retirement plans require significant and often complex compliance testing, both in plan design and plan operation. Strategic-minded employers turn to a high-quality retirement plan consultant who can work through all of the various considerations to ensure that their retirement plans will pass all required laws and regulations and then operate in compliance with this ever-changing regulatory environment.
Get help from an experienced retirement plan consultant
These are just some of the considerations smart employers use when considering how they design and operate a retirement plan for their workforce. To succeed in today’s competitive environment for talent, make sure you’re in that shrewd employer camp.
If you’re interested in offering retirement benefits that will help you retain your current employees – and attract new ones – you should speak to an experienced consultant today. At Kushner & Company, we have decades of experience working with employers of all sizes. So, if you’re ready to get started, we encourage you to contact us today.