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.
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 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.
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.
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.
© 2012 Generational Equity, LLC All Rights Reserved