Are you, as an employer, considering implementing a group registered retirement savings plan (RRSP) account as a benefit to your employees? If not, think about this: a group RRSP account can help you retain employees, increase productivity and help them reach their personal savings goals.
Some employers look at group RRSPs as an extra expense. However, you should look at the benefits of having one before making a decision.
Here are three reasons you should consider a group RRSP for your employees:
Reason 1: Employee Appeal
- When employees know you’re matching payments to their RRSP account, they’re more inclined to participate. It’s also a deterrent for employees looking for alternate employment. Companies that don’t offer group RRSP accounts will not be seen as favourable as those that do.
Reason 2: Employee Goals
- One of the easiest ways to save is with monthly deductions. This allows employees to actively save, even though they never really see the money leave their account. The same is true with a group RRSP. Saving for retirement is easy when money is deducted at the source and the employee doesn’t see it coming off their paycheque.
Reason 3: Increased Employee Productivity
- As the employer, you decide who can participate in employer-matching group RRSP plans. Employers have been known to keep group RRSP matching as a privilege, and only those who have achieved a set sales target or goal are eligible for the company matching portion in their RRSP account.
Happy and satisfied employees will keep your business operating smoothly, increase productivity and help keep employees longer. If you don’t have a group RRSP account set up, Call Des today to get started.