Many employers have concerns about having a retirement plan.
- They're time-consuming to administer: too much work has to be done by the person or people who have the retirement plan responsibility.
- They're difficult to keep in compliance: The EBSA reported in FY 2015 67.3% of company's retirement plans that are audited by the Department of Labor fail the audit, resulting in average fines of $285,000. This has culminated in a cost of $5.6B over the last 4 years.
- They can carry huge liability exposure. Most people don’t even understand the risk they are accepting when offering a retirement plan – but anyone who understands the risk doesn’t want it!
- They can be expensive for the companies offering them.
- There are a lot of providers – how do you know you are getting the best
These are all valid concerns—but the fact is this:
A 401(K) may be the biggest hiring and retention feature a company can employ.
So how do you overcome all these concerns and take advantage of all the hiring and retention benefits?