The One-Word Solution to Your Business’ Staffing Problems (Actually It’s a Number)

At Duncan Williams Asset Management, we work with small businesses, large businesses and even non-profits, and one thing many of them seem to have in common is the challenge of staying staffed with good people. As the unemployment rate continues to come down, it’s increasingly an “applicant’s market,” which makes recruiting and retention tough. And if you run a business or non-profit, you know the impact a bad hire or a key departure can have.

But there’s a strategy that can work wonders on the staffing front, and that’s establishing (or converting to) a 401(k) retirement plan.

Here’s why:
401(k) plans can help with recruiting. If an applicant is considering multiple similar positions, the one that offers the 401(k) certainly has an edge and can help sway the applicant — and can prevent the need to get into a salary bidding war.

401(k) plans communicate strong culture. When you offer a 401(k) plan – especially when competitors in your sector do not – it shows that you have a special culture that cares about employees, their families, and their futures. That’s great for your reputation and morale.

401(k) plans can help reduce turnover. Not having a 401(k) can put your team at risk. We saw a recent study in which almost 40% of small business employees said they’d leave their current position for one with a 401(k). And a simple, strong, and well-communicated 401(k) benefit is a strong incentive to stay put.

If it’s been a while since you’ve considered a 401(k) for your business or non-profit, it might be time to take a second look. Give us a shout, and we’d be glad to help you run the numbers.