How Offering a 401(k) Gives Growing Businesses a Strategic Advantage

AUGUST 5, 2025

In today’s competitive labor market, smaller employers are increasingly going head-to-head with larger organizations to attract and retain top talent. One of the most decisive factors in a candidate’s job search? Retirement benefits. In fact, 401(k) plans are now considered a must-have — second only to healthcare in importance.¹

Gain a Competitive Edge

A well-structured retirement plan doesn’t just help you compete; it helps you keep the talent you’ve worked hard to hire.

Beyond retention, there’s growing legislative momentum. Many U.S. states have already mandated employers to provide access to retirement savings plans, with more legislation on the horizon. In fact, all but three states have either active mandates in place or are working toward implementing mandated retirement programs.³ A 401(k) plan not only meets these requirements but also offers:

• Higher employee contribution limits
• Employer matching and profit-sharing opportunities
• A compelling addition to your benefits package

The Business Impact: More Than Just Compliance

Implementing a 401(k) plan can deliver measurable benefits:

• Startup tax credits — New plans may qualify for up to $5,500/year in tax credits for the first three years
• Employer contribution incentives — Businesses with fewer than 100 employees may receive up to $1,000 per eligible employee to offset the cost of matching contributions for up to five years
• Improved productivity and retention — Employees with access to a 401(k) plan are 32% less likely to leave during their first year⁴
• Enhanced financial wellness — With tax advantages, automatic payroll deductions, and the power of compound interest, 401(k)s are one of the most effective ways for employees to save for retirement

Tax advantages, automatic payroll deductions, and the power of compound interest make 401(k)s one of the most effective ways for employees to save for retirement.

Build a Plan that Works for You

Establishing a 401(k) plan may seem complex, but it doesn’t have to be. The retirement specialists at USI Consulting Group (USICG) provide expert guidance every step of the way — from plan design to ongoing plan compliance — making it easy to launch and maintain a plan that fits your business.

We collaborate with employers to:

• Identify and understand each company’s unique objectives and help tailor best-in-class solutions that save them time and money
• Develop a customized retirement plan that aligns with company needs and adheres to regulatory requirements, including plan design, employee education strategy, streamlined administration and more
• Guide in selecting fiduciary partners to manage and monitor plan administration and the plan investment menu
• Conduct ongoing support and annual plan reviews to assist with continuing due diligence and ensure overall plan health