Offering a 401(k) is a good way for companies to attract and retain talented employees but with that offering comes responsibility. It is up to the company to make decisions and choices that are in their employees’ best interests. If your goal is to build employee loyalty as it is for most companies, then you want a retirement plan is available at the lowest possible cost. It also means having a 401k plan management team that will make the best investment decisions on your behalf.
For many companies, having the time and expertise to manage their employees’ 401(k) plans just isn’t practical. Richard Brothers explains that “We offer 401k plan management services by thoughtful and disciplined advisors that will help you and your employees meet your goals.” Getting professional support to develop and implement the plan will go a long way towards making your plan a successful incentive.
Creating a Partnership
The 401k plan management for your company’s retirement plans should not be a service that is offered off-site. Instead, the members of the advisory team need to become familiar with a number of key employees within your company to serve as a committee which makes decisions about the plans. These key figures are often HR personnel, owners, presidents, CEOs, and financial officers. Your company will benefit from the expertise of the advising company as well as the familiarity of the company shared by key personnel.
How Decisions are Made
The members of the 401k plan management committee will be working together to make the best decisions for the group, not for individuals. The plan will include options for different employees who have a variety of needs. The perfect retirement plan is one that can be put together like the pieces of a puzzle to get the final picture that each employee needs.
Most people do not have the ability to make the decisions on their own. When the committee makes decisions, they will be designed to meet everyone’s needs and include the degree of risk that each person is willing to invest in. Basically, the committee will make the decisions about the options that are offered and then advise the employees on which options they should invest in to reach their individual goals.
Professional 401k plan management can help company owners avoid the numerous conflicts that can reduce the effectiveness of offering their employees a retirement plan. It is important to them to get a plan that is affordable and in line with the company’s financial goals while it also meets the needs of their employees. Hiring professional advisors to work with them at every step of the plan development and management will reduce the stress and minimize their personal responsibility for making the right choices and making it easy and appealing for employees to invest in the retirement plan. Once the plan is in place, the 401k plan management team should continue to monitor its performance and make recommendations for optimizing it continually improve performance. The more successful the 401k plan is; the more it will work the way the owner intended.