• About
  • Contact
  • Testimonials
  • Newsletter
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Sunday, May 28, 2023
No Result
View All Result
California Business Journal
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
California Business Journal
401k

Sweetening Benefit Packages to Attract and Retain Talent

The rush for businesses to add benefit plans stems partly from the pandemic, which was a wake-up call for all Americans who found themselves in a financially unstable situation and started paying more attention to securing their future.

by Magda Hernandez, Senior Writer, California Business Journal
A A
Share on FacebookShare on Twitter

Financial wellness. No longer just a buzz phrase, but a major concern for employees and employers these days.

Recent changes in the job market put more power in candidates’ hands, and employers are feeling the pressure to be more competitive in attracting and retaining talent. Furthermore, there’s a mismatch of supply and demand as both sides struggle to find the right fit.

One solution for business owners is to sweeten their benefits package by adding a retirement plan.

“It’s top of mind for business owners right now,” says Michael Majors, senior director of national retirement sales for Paychex, one of the leading 401(k) providers in the nation, serving more than 90,000 plans. Majors adds that a recent internal survey found 77 percent of Paychex’s clients who started retirement plans in the past few months did so to find and keep good employees. “It’s a dramatically different story compared to past years.”

Paychex, which has been in business for 50 years and has offices throughout the United States, helps small and medium-size businesses address their payroll, human resources, insurance, retirement needs and more.

ADVERTISEMENT

“You have to stand out in attracting workers right now, and one of the best ways to do that is to offer a retirement plan such as a 401(k),” Majors says. “Our , technology platform, is built to support the needs of growing businesses at a price point that makes sense for them.”

paychex building

The rush to add the retirement benefit stems partly from the pandemic – a wake-up call for all Americans who suddenly found themselves in a precarious financial situation with a heightened focus on securing their financial future.

“Most people had never experienced a financial shock of this kind , it scared them,” says Majors, who expects a whole new generation of savers to come out of the experience who will work more diligently toward a dignified retirement that they’re otherwise not likely to get from Social Security.

According to 2020 data from the U.S. Bureau of Labor Statistics, only 55 percent of adults participate in a workplace retirement plan. Meanwhile, the U.S. retirement system is in trouble and looking to business owners to be part of the solution while helping entrepreneurs deal with the pandemic at the same time. At the end of 2019, a new federal law — the Setting Every Community Up for Retirement Enhancement Act, better known as the SECURE Act — made it easier and cheaper for small business owners to set up retirement plans for their workers.

California is at the forefront compared to other parts of the country. CalSavers program targets self-employed individuals and workers whose employers don’t offer a plan, giving them an opportunity to contribute to an IRA that belongs to them.

According to California state law, companies with five employees or more must facilitate access to CalSavers or offer a plan of their own to avoid penalties. But while it seems like going through a free program such as CalSavers is the easier option for a business owner, working with a provider such as Paychex comes with tax credits and other benefits the state program does not offer to companies.

“It’s accelerating businesses to say OK, if I have to offer retirement benefits, I want to make sure it is the right one for my business,” Majors says, pointing out that Paychex’s retirement sales are up throughout the country and program retention rates are high.

With COVID as the great accelerator, Majors and his team are getting the attention of business owners. While the world is working remotely, they’re taking advantage of the time they would otherwise spend driving to in-person meetings by instead maximizing outreach efforts to even more businesses.

Paychex makes it simple for entrepreneurs to customize plans and get employees on board through its convenient mobile app. The setup process is as fast as 20 minutes and the plan cost can be as little as a cell phone bill to maintain. Moreover, since Paychex also offers payroll services, there is an opportunity to streamline the process even further.

paychex employeeCraig Silverstein, who oversees the retirement services product offering at Paychex, says many businesses stay on the sidelines when it comes to offering retirement plans “because they think their business is too small and 401(k) plans are too complex,” he says.

“In reality, it’s never too early to start, even if it’s with just a handful of employees. Especially when there’s a battle for talent going on and tax incentives to offset the business owners’ costs. A majority of businesses with less than 50 employees are not offering retirement plan benefits to their employees today. However, we expect to see significant growth in the area as a result of the SECURE Act and as more states launch programs like CalSavers. The more businesses begin to offer retirement plan benefits the more pressure it puts on those that are not currently offering them.” — Michael Majors, senior director of national retirement sales for Paychex

Majors says he expects to see the trend last for the next few years. As more companies start offering robust benefits packages, including retirement, others will have no choice but to follow if they want to stay relevant and comply with government mandates. There’s also likely more legislation ahead as several bills related to workplace retirement programs are circulating in Washington, D.C.

“There’s really never been a better time than right now for small businesses when it comes to starting a 401(k) plan,” Silverstein says. “When you have employees that are supported financially, they perform better in the workplace and they remain loyal.”

Copyright © 2022 California Business Journal. All Rights Reserved.

This article was edited and published by Rick Weinberg, California Business Journal’s Founder, Publisher and Editor-in-Chief. Click here for Rick Weinberg’s biography.

For testimonials on the impact of California Business Journal articles, click here.

Contact us if you’d like an article written on your business: Rick@CalBizJournal.com / 949-648-3815

 

Tags: benefitsbestbusinessesCaliforniaconvenientdataemployeesentrepreneursfinancialfocusgrowthlawmobilepayrollplanspowerretirementsmall businesssmall business ownerssolutiontaxtechnology
ADVERTISEMENT
Magda Hernandez, Senior Writer, California Business Journal

Magda Hernandez, Senior Writer, California Business Journal

Magda is a multi-lingual journalist with years of experience in print and digital media and TV production, and possesses an expertise in storytelling and cross-promoting brands domestically and internationally. She spent 10 years at NBCUniversial as a Producer and Reporter and was also an Editor and Reporter at the Orange County Register.

Related Posts

Saad Mouasher, chairman of the Board of Jordan’s Ahli Bank
Redefining Shareholder Value
401k
An Overview Guide for 401(k) Plans
3
CAPITAL GAINS
ins2.0
INSURANCE 2.0
ADVERTISEMENT

CBJ Newsletter

Facebook Twitter LinkedIn Instagram LinkedIn

Advertise With CBJ

Contact Rick@CalBizJournal.com

CBJ Rates and Demographics

ADVERTISEMENT
1REALTOUR-SAN DIEGO-WEB DESIGN
Facebook Twitter LinkedIn LinkedIn Instagram Youtube
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • California Hotel Listings
  • Daily Updates
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Lawyers
  • Marketing
  • Medical
  • News
  • Newsletter
  • Opinion
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • More Truth About Temu: Is Temu A Chinese Company?

    The Truth About Temu: Where Is It From?

    0 shares
    Share 0 Tweet 0
  • Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • Investigation: Can TriumphFX Take Your Money?

    0 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    3 shares
    Share 0 Tweet 0
  • Top 5 Flavors On Elf Bar BC5000 Review

    0 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • Temu’s New Shipping Policy Is A Smashing Hit For Shoppers All Over the Country

    0 shares
    Share 0 Tweet 0
  • 30 Best Temu Alternative Apps To Buy from Online

    2 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0

Latest Articles

How to Prevent Hair Loss While Taking Testosterone Supplements?

Unveiling the Hidden Dangers: Lesser-Known Types of Drug Addictions

Why Is Starbucks Gold Card Better Than Regular Rewards Program

Spin and Win: Unveiling the 5 Hottest Online Slot Games of the Year

Mistakes to Avoid When Using a Plasma Cutter

Source: Pexels

The Most Interesting Online Casinos Australia: Real Money Thrills

The Modern-Day Entrepreneur: The Ins and Outs of Everyday Processes

Tips for Improving the Leadership and Culture of Your Team

Credit: Unsplash

Common Mistakes to Avoid When Using Release Forms: Tips for Service-Based Businesses

7 Fun Things To Do With A Trampoline

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR