In today’s job market, a competitive retirement plan is more than a benefit. It’s a strategic tool to attract and retain top talent. As the workforce evolves and employees become more financially savvy, they compare benefits just as much as salaries. This means employers must ensure their retirement offerings are attractive and aligned with current industry standards.

Why It Matters

A competitive retirement plan shows employees you’re invested in their long-term financial well-being. It builds trust and loyalty, reducing turnover and boosting morale. However, with economic shifts and changes in employee expectations, even a solid plan from a few years ago might now fall short. That’s why regular benchmarking is essential.

What is Benchmarking?

Benchmarking involves comparing your retirement plan against others in your industry, region, or company size. This helps you identify gaps or opportunities to enhance your offering. For example, are you matching employee contributions at a similar rate as competitors? Do your fees and investment options align with current trends?

How to Benchmark Effectively

  1. Evaluate Employer Contributions – Are you meeting or exceeding the average match rate in your sector? A higher employer match can make your plan more appealing.
  2. Review Plan Fees and Investment Options – High fees or limited investment choices can discourage participation. Make sure your offerings are competitive and easy to understand.
  3. Assess Employee Participation Rates – Low participation may indicate that employees don’t see value in the plan. To increase engagement, consider adding education or auto-enrollment features.
  4. Use Industry Reports – Leverage benchmarking studies and data from retirement plan providers to compare your plan’s structure, fees, and participation rates.
  5. Partner with a Professional – Working with a financial advisor or retirement plan specialist ensures your benchmarking process is accurate and tailored to your organization’s goals. Professionals can help you interpret data, identify gaps, and implement strategic improvements.

Stay Competitive

Don’t wait for employees to voice concerns. Proactively evaluating and improving your retirement plan keeps you in line with industry standards and gives your organization a key edge in recruiting and retention. A truly competitive retirement plan evolves with the workforce and continues delivering long-term value for the company and its employees.

If you’re unsure where your plan stands or how to get started with benchmarking, contact KerberRose. Our team can help you assess your retirement benefits and build a competitive and compliant strategy in today’s market.

KerberRose Wealth Management, LLC is a Registered Investment Advisor. Certain representatives of KerberRose Wealth Management, LLC are also Registered Representatives offering securities through APW Capital, Inc., Member FINRA/SIPC. 100 Enterprise Drive, Suite 504, Rockaway, NJ 07866 (800)637-3211. KerberRose Wealth Management, LLC is not owned or operated APW Capital, Inc. Financial Planning and Investment Advisory Services are offered through KerberRose Wealth Management, LLC.