• Home
  • About
  • Contact

The Private Business Owner

An Online Publication by Generational Equity

  • M&A
  • Finance
  • Human Resources
  • Operations
  • Sales & Marketing
You are here: Home / Human Resources / One Thing That Will Make You More Attractive When Recruiting Top Talent

One Thing That Will Make You More Attractive When Recruiting Top Talent

March 28, 2012 By Lindsey Perkins Wade

When you’re searching for the ideal employee  – a person that has the smarts, knowledge, and talent to take your business to the next level – you also need to consider what potential hires will be looking for in their future employer. Without knowing what they desire in a new job, you will be challenged when enticing them to work for you.

Sure, employees want the highest salary possible. But beyond that, what’s most important? The answer will vary from person to person, but recent data indicates that one thing can separate you from the rest of the pack: your company’s retirement benefits. Retirement benefits as used in this article include 401Ks, cash balance plans, and profit sharing plans.

Reports indicate good retirement benefits needed

Mercer conducted its What’s Working survey in 2011 that questioned 30,000 employees in 17 markets around the world, including 2,400 people in the United States. In the U.S. and Canada, “a good retirement savings or pension plan ranks as the second most important value proposition element, behind base pay.”

Also in the findings: Most American employees, 57 percent, are not confident that they’re ready for retirement.

What do these statistics mean? Not only do employees value good retirement benefits from their employers, but they also need help to adequately prepare for their post-career lives.

Another organization, the Employee Benefit Research Institute, has results from the Retirement Confidence Survey (RCS) that back up Mercer’s findings as well.

According to RCS findings:

“The percentage of workers not at all confident about having enough money for a comfortable retirement grew from 22 percent in 2010 to 27 percent [in 2011], the highest level measured in the 21 years of the RCS. At the same time, the percentage very confident shrank to the low of 13 percent that was first measured in 2009.”

Here’s a graph of the same information regarding worker retirement confidence throughout the years.

worker confidence in retirement plan

Again, notice that the number of employees not at all confident in their ability to have enough money during retirement is the highest it’s ever been in the 21-year history of the RCS.  Although this is not surprising given the dramatic impact the financial crisis has on most IRAs and 401Ks, it does point out that providing aid to workers for retirement planning can be a great tool to use when attracting potential employees.

The next steps for business owners

To attract top talent, business owners need to take the following steps:

  • Reevaluate your current retirement benefits and look for new ways to improve them.
  • Ask current employees what they would like to see. Not only will this help you stay competitive, but you will also build some good will with your staff.
  • Meet with your financial advisor to see what options make sense for your company and employees.

You might be thinking that it takes too much time, energy, or effort to review your retirement benefits. How does this help my bottom line? It doesn’t—directly. But if you lose out on top prospects to a competitor because your business didn’t offer enough options, you’ll be kicking yourself for not doing this sooner. And losing a key player to another company does eventually affect your bottom line.

Want to learn more about growing your business? Download a free copy of Building and Exiting a Desirable Business today.

how-to-build-a-desirable-business

© 2012 Generational Equity, LLC All Rights Reserved

Share this:

  • LinkedIn
  • Twitter
  • Facebook
  • Reddit
  • Pinterest
  • Email
  • Print

Filed Under: Human Resources Tagged With: 401k, employee benefits, recruiting, retirement benefit

About Lindsey Perkins Wade

Lindsey Perkins Wade is managing editor of The Private Business Owner.

The Private Business Owner – A Generational Equity Blog

The Private Business Owner is an online publication sponsored by Generational Equity. PBO aims to provide useful tips and information that will improve both the lives and businesses of entrepreneurs, as well as provide valuable insight into the company exit process through bi-weekly M&A Digests.
  • Learn more about Generational Equity

Set Yourself Up For Success

To help business owners become more informed, we've created free, valuable whitepapers to help you as you embark on your jouney.

Start learning today!

  • How To A Build A "Buyer Ready" Business
  • 5 Common Mistakes To Avoid When Selling A Business
  • Uncover Why Investors Are Motivated To Buy Your Business
  • Exit Planning Basics: What You Need To Know Before You Start
  • Everything You Need To Know About The Evaluation
  • How To Find Buyers For Your Business
  • Unlock the 4 Secrets To A Successful Business Sale
  • Ultimate Glossary of Must-Know Terms If You're Selling A Business
  • Acquisition Case Study of Johnston Enterprises: A Novel Split Pays Off

© 2023 Generational Equity. All rights reserved.      General Disclaimer / Privacy Policy     

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.