Group Savings Plan
Are you having a hard time finding and keeping great people? Don’t overlook the power of enhancing your benefits offering with a simple yet effective retention tool: a company savings plan.
We are hearing from clients and peers that hiring and keeping great people is more difficult right now than anyone can remember. It’s being called the Great Resignation– is it impacting your business as well?
Why are people leaving their jobs? What is causing them to choose different opportunities?
Certainly, the pandemic has impacted how people feel about their jobs, their time, and exactly how they want their work life to look and feel. People have experienced a resetting of priorities, and a taste of a different way of working. But does the employee benefits plan offering still matter? Yes, absolutely!
What do employees want in their benefits offering?
From our perspective as benefits advisors, we know that great benefits go a long way. People expect a comprehensive benefits plan, and these days they want flexibility and choice to be part of the offering. More than ever, people want work-from-home flexibility if the job allows for it, autonomy over their day, and competitive pay. Culture matters, and great leadership from authentic, supportive and caring people. A recent article showed these top 3 factors driving employee retention:
- Benefits (34%)
- Strong Sense of Culture (31%)
- Belief in Senior Leadership (29%)
To us, these three items are intrinsically linked! Great leadership understands that you need to empower people and meet their needs; doing so results in a positive and engaged culture. But how do you meet needs? A great benefits plan can play a big role.
But what about a company Group Savings Plan?
Because it’s RRSP season, and the ads are everywhere due to of the looming March 1st deadline, it’s timely to point out that employers should be using this simple and easy tool to enhance their benefits offering. If you’re paying competitive compensation and have a good health and dental plan in place, then a retirement savings plan is a natural next step.
Is it a Pension, a Group RRSP, or the Company Retirement Plan?
Whether you call it an employer retirement plan, a company RRSP, a group savings plan, or the ‘pension plan’, an employer-sponsored Group Savings Plan is a highly valued part of a benefits program. In fact, when asked, employees say that their benefits are more important to them than an equivalent amount in straight pay.
The exact type of plan that’s right for your group depends on your organizational needs and goals. There are many products available that can be employer-sponsored as part of a “Group Savings Plan”:
- Registered Pension Plans (RPPs)
- Registered Retirement Savings Plans (RRPSs)
- Deferred Profit Sharing Plans (DPSPs)
- Tax-Free Savings Accounts (TFSAs)
Which type of plan is right for you? While most employers choose a RRSP or RRSP-DPSP combo these days, there is still a place for pensions, depending on the goals of the business. Working with a qualified advisor, and walking through all the relevant considerations, will help you decide on the right plan for your team.
A Group Savings Plan is truly easy to set up and administer.
What most employers and HR personnel may not realize, is that there is no cost to setting up a workplace employee savings plan, other than what you may decide to contribute on behalf of the company. And guess what? There are no rules when it comes to employer contributions; employers can contribute a fixed percentage, a certain dollar amount per person or not at all. The choice is yours.
The mental health connection: help employees to reduce stress with a Group Savings Plan.
Employees rank ‘finances’ as their number one cause of stress. As we wrote in an article last year, helping employees to save for their futures in a direct way can assist them in taking control of their finances.
Going a step further, the implementation of an employer-sponsored Group Savings Plan provides the opportunity to offer employees financial literacy education. When you work with the Immix Group, we not only ensure Education sessions are made available to everyone in a variety of formats, we also ensure that all employees have access to qualified financial advisors.
A Group Savings Plan may be just what your company needs to stand out in the current hiring climate.
Why not find out more? Please feel free to reach out to us to discuss the best options for your company. We love to hear from you.