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It is a well-known fact that all private employers in the United States – whether they be small businesses or giant corporations – must make a decision about whether to offer their employees some sort of tax-deferred retirement scheme.

The most popular options are 401k plans, which let employees set aside up to 15% of each paycheck in a tax-sheltered savings pool, and the less flexible but more economical SIMPLE IRA alternative, which may be more attractive to smaller enterprises.

Giving your employees the option to participate in some kind of retirement or pension scheme is known to have a number of long-term benefits, ultimately contributing to the success of your business.

First of all, offering a retirement plan is likely to attract a better class of prospective employees, who have more experience, better skills, and are looking at your company as a long-term employer. This gives you better options when selecting new staff, whether they be managers, office workers, laborers, or anything in between.

Once you have selected a good host of high quality employees for your company, having a good retirement plan in place can also serve to motivate them to work hard and “climb the corporate ladder.” This is because many pension schemes are tied to salary, and in the case of 401k plans, incentives can be built in to reward good performance.

Last but not least, offering a retirement plan is sure to make your top employees think twice before leaving your company for another employer. Pension plans can usually be structured to reward longer-term employees who show loyalty to the firm. This discourages your workers from job-hunting elsewhere, and eliminates the constant hassle and expense of having to recruit new employees every month.

About the Author: Jeremy Maddock is a professional internet entrepreneur who owns and operates over 20 websites, including one about employee benefits.