Building a Loyal Workforce with a 3(38) Fiduciary
Businesses can now quickly vet and hire quality candidates. Right? If you run a small business, you would probably be quick to disqualify the former statement.
It might appear to those on the job hunt that employers still reign supreme; it’s not easy to find a job in 2024. Employers know that new employee demands are rising to the surface amidst the Great Reshuffle.
Navigating this new post-pandemic territory might keep you up at night asking, “Should I focus on employee retention, or use technology advancements that seem to simplify the recruitment process?”
Move Over HR; AI Has Entered the Chat
Let’s say you focus all your energy on boosting talent acquisition. You may already use an Applicant Tracking System (ATS) software incorporating artificial intelligence. The seeming goldmine for employers is not what it seems.
ATS software can go as far as posting a job to crafting an offer letter. This technology gives the impression that HR representatives, hiring managers, and recruiters can either be released or that it will speed up hiring. In conjunction with LinkedIn’s “Easy Apply” growing in popularity, it’s commonplace to see job postings with 100+ applicants in the right-hand corner glaring back at you.
TechTarget explains that ATS software can disqualify a candidate who might otherwise be equipped for the position for simple errors like formatting or missing specific keywords. The potential mismatching of applicants could prove cumbersome to owners and hiring professionals.
Is There a Solution?
Whether you are a seasoned business owner or just getting started, moving away from the stress of hiring is attractive. So, how do you keep employees happy and engaged in this competitive landscape? One solution: rethinking your 401(k) offerings to maintain your competitive edge. Retirement plans might be the difference between meeting rising employee expectations and paying an additional nearly $4,700 per hire.
Meeting Employee Demands = Better Offerings
Employee retention is a hot topic; 2024 data from Franklin Templeton reports that 91% of employers experienced 10% or more employee turnover Explosive growth in the small to medium-sized businesses (SMB) segment aids seasoned workers’ job-swapping. In translation, improving benefits might be more important now than ever before.
The Retirement Plan Benefit
According to SCORE (mentors to America’s small businesses), 94% of business owners claim the 401(k) benefit aided their recruitment and retention. As a part of Colorado SecureSavings, qualifying employers are already being tasked with adding on employee retirement offerings. Hiring the right plan investment advisor, like a 3(38) fiduciary, could be among the most impactful decisions when considering employee retention strategies.
Plan sponsors seek to improve your employees’ investment selections while assuming liability tied to those decisions. They oversee the risks and responsibilities associated with employer-sponsored retirement, helping you maintain the edge.
Key Benefits of a 3(38) Fiduciary:
- Contractually responsible for the mutual fund choices in your company 401(k) plan.
- Investment fiduciary service that benefits your employees and you.
- Seeks to lower employee churn rate (a metric measuring overall turnover as employees are hired and leave).
Employer challenges are ever-growing, and as the old saying goes, an ounce of prevention is worth a pound of cure. A shrinking employee churn rate could lead to a reduction in onboarding costs. With fewer transitions, your business could be positioned for a spike in productivity—long-term employees are stable and experienced. Increasing additional time in the workplace can even improve employee collaboration.
A More Personalized Approach
As a small business, we understand the unique challenges of attracting and retaining top employee talent. Shelton Retirement Plan Services provides you with a low-cost, high-quality corporate retirement offering. Your business is unique, and a boutique firm might help you hang on to the talent in whom you’ve already invested so much.
If you want to offer your employees more than the cliche job description mentioning “a community-centered, friendly working environment,” help them save for their future.
Important Information
Investors should consider a strategy’s investment objectives, risks, charges and expenses carefully before investing.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
