Leverage a 401(k) to Retain and Attract Top Talent

As an owner or decision-maker at your company, you don’t need to be reminded how challenging it is to sustain growth and scale success. Often it comes down to having the right people. But attracting, hiring and keeping top talent can be difficult, especially when the competition is offering comprehensive benefits. By adding a benefit like a 401(k) retirement plan, you may be able to sharpen your competitive edge in a tough job market.

Workers Want Support From Their Employers

New concerns over economic uncertainty are adding to financial stress for American employees. As a result, more workers are leaning on their employers for financial and saving support from employment benefits like a 401(k) retirement solution.

Currently, only a little over half of private sector workers in the United States are covered by an employer 401(k) retirement plan, and few workers save without one.1 As workers continue to understand the importance of retirement savings, this is a great time for employers to reevaluate employee benefits and find a retirement solution to fill this need.  In fact, 73% of employees are willing to stay with an organization because of its retirement benefits and 86% of job seekers say a 401(k) is a “must have” item when evaluating a job offer.2,3 The costs and resources required to manage a retirement plan can be offset with savings in employee turnover and increased productivity from existing employees.

"For employees and employers alike, the stakes today are high when it comes to ensuring employee financial wellbeing. Amid new challenges like persistently high inflation, many employees are seeking help managing their short- and long-term financial needs. We have seen firsthand that many employers are stepping up to tackle these challenges, yet there remains more work to be done.”

– Brian McDonald, Head of Morgan Stanley at Work

401(k) Benefits for Employers

As a small business owner, you can help improve the financial future of your employees by providing 401(k) retirement benefits while also gaining business advantages. 

In addition to avoiding the risk of being passed over by top-tier candidates while exposing current employees to competitive employment offers elsewhere, offering a retirement plan can offer a host of other benefits to your company including:

  • A retirement plan can positively impact an organization’s people and culture while providing bottom-line value.
  • Some states have rolled out required retirement solutions for employers of certain sizes.  Employers can use this opportunity to not only meet state requirements but to also offer a solution that is more tailored to meet the needs of your business and employees.
  • Offering a 401(k) for your business is easier-and more affordable-than you may think.
  • Small businesses may benefit from substantial tax credits that help defer the costs of starting a workplace retirement plan.4

Retirement benefits can help you attract and retain in-demand talent, which can reduce costly turnover expenses and positively impact your bottom line, year after year.

Morgan Stanley at Work offers small business 401(k) services to help you and your employees reach their retirement plan goals. Furthermore, working with a provider like Morgan Stanley gives you access to a Financial Advisor, who can craft a retirement plan that helps meets the needs of your company and your employees with diversified investment options.

Talk to a Morgan Stanley Financial Advisor, and your legal and tax advisors, about your options and what type of retirement solution makes the most sense for your business and employees.

Morgan Stanley at Work helps build financial confidence through thoughtful education to help individuals embrace their tomorrow, today.