Last year was a fantastic for small business growth, and in its 2021 New Business Insights, Intuit QuickBooks predicted as many as 17 million new small businesses would form in 2022. It marks an increment of 2.5% from the previous year and grows to 9.8% in four years, from 2017 to 2021.

While it was a great year for starting businesses, it was a not-so-great year for staffing them. According to the Bureau of Labor Statistics, in 2021, more than 47 million Americans left their jobs willingly. This represents an unrivaled workforce mass exit, driven by the pandemic, now known generally as the Great Resignation.

In an effort to attract and retain employees, The Great Resignation has further caused small businesses to offer new or better retirement plans to workers. Many small businesses have realized how difficult it is to captivate talents, and the benefits of keeping them whenever possible. Thus, small business owners need to enlist their bonus offerings to attract and retain employees.

According to Glassdoor, 52% of job applicants reveal benefits and bonuses are one of their highest considerations before taking a job offer. Also, almost 80% of workers would rather choose new or extra benefits than a pay increase. Financial security becomes more vital as workers approach their retirement. They need investment in their retirement, such as a retirement plan contribution match.

Offering a match or contribution to a retirement plan like the 401(k) shows an employer is investing in their worker’s long-term financial achievement. That alone can be a compelling attraction and retention tool. State-mandated retirement plans and the development of pooled employer plans are also making retirement benefits easier for small businesses to provide.

Auto I.R.A.s and state mandated retirement plans
Some states now have laws in place requiring small businesses to provide their employees with retirement benefits. State-mandated retirement plans were created to meet this legal demand. Generally, businesses could choose from one of two ways to abide by these laws.

The first option would be to enroll their workers in a state-sponsored retirement program. Otherwise, they can sponsor their plan through the private market. Eight states have already launched auto-IRA programs. Oregon, Illinois, and California have automatic I.R.A. programs running, while Connecticut recently launched. Retirement plan mandates are now a fact for New Jersey, New York, Maryland, Virginia, Maine, Washington, and Colorado. Small businesses that cannot offer their plans can benefit from a basic, no-cost savings plan for their employees.

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