Not sure if a 401k plan is right for you?
Many employers aren’t sure if a 401k plan would make sense for their business. Following are three reasons that it would probably not make sense for your business.
- Your employees aren’t worried about paying for their retirement.
Despite recent research, like this study from PricwaterhouseCoopers that 52% of employees are stressed out about their finances, you’re not worried. Your team isn’t like the 46% of respondents that said they spend three hours or more at work each week thinking about or dealing with issues related to their personal finances. You’re not worried about that lack of productivity. You can afford to pay them to be thinking about other things at work. Besides, you’ve heard groups of employees teaming up to buy lottery tickets and are confident they’re going to be able to retire.
- Retaining good employees isn’t a problem.
Offering a competitive benefit package isn’t a big deal. You love the interviewing process. You would rather spend your time training new people and are confident that employee turnover hasn’t impacted your customer service one bit. Besides, it’s not like you have to replace your whole staff. You’ve got that group of employees that lacks the skills and motivation that would make them attractive to another employer, so they’re not going anywhere. They’re perfect for your business.
- You love paying taxes.
Not only do you love paying taxes, but you want to pay them right away. Trying to defer paying taxes runs counter to your definition of being a good citizen. You’re thrilled with how the government chooses to spend our tax dollars and you want to help them by giving them as much of your money as you can, as soon as you can.
If this sounds like you and your situation, then you’re right, a 401k plan probably isn’t a good fit for your business. If this isn’t you, I can help. Give me a call or send me an email and we can schedule a time to talk about how a 401k plan might help you and your business.