Along with salaries, company benefits play a key role in attracting, retaining and motivating employees. But all too often, business owners fail to recognize what might be the weakest part of their benefit packages — their 401(k) plans. Among the most desirable prospective employees are those who, looking to the future, pay close attention to the strengths and weaknesses of these plans. And existing employees may become restless if they don’t see enough growth in their retirement nest eggs, especially if they contribute the maximum amount each year.
Many factors of 401(k) plans can be subjective. But there are some objective criteria that define whether these plans are a desirable employee benefit, compared with those available from your business’s competitors.