It is rare that so many business and personal issues for a PEO and its clients and employees align as perfectly as they do now; let me explain.

1. The severity of the current recession has dramatically affected personal behavior in one important area – saving. A few years ago America had a negative savings rate, meaning that most spent more than they made. Today, the savings rate exceeds 7%. There is no more efficient and cost-effective way to save than through a 401k. Employees want it; soon they could be demanding it.
2. The greatest value proposition offered by a PEO is arguably the 401k. It leverages the big company benefit to the small employer virtually like no other benefit. Most small companies do not have retirement plans because of the cost, complexity and simply the hassle-factor. The PEO overcomes all of these problems.
3. In this time of shrinking payrolls and tight budgets, the PEO is vulnerable to losing clients. Our studies prove that a client company is five times more likely to stay with you than leave if our 401k plans is in place.

If your 401k plan is under-performing or is just a non-factor most of the time, you are likely missing a great opportunity to better market to new clients and retain current clients. The alignment of personal needs of employee, a greater value proposition to client company owners and finally to you in retaining clients exists right now.

John Slavic
President of Slavic 401(k)