Offering your employees a way to plan for retirement is a key component they want as part of their benefits package. As a small or mid-size business, a retirement benefits plan helps you attract and retain quality, talented employees. Employees are less likely to leave your company for another job if they feel that the company values their financial security... which is why it is critical to offer them a way to build their nest egg and plan for the future.

Here are the top 3 reasons companies offer their employees a retirement savings program or 401(k) plan:

1. Attract and Retain Quality Employees
When potential employees look for a new job, they want a competitive salary, a good amount of vacation and personal time, adequate health insurance coverage and a retirement savings plan. Retirement or 401(k) plans are becoming more of the norm in terms of what employers are offering employees. Make sure your business and the benefits package you offer stays competitive in the marketplace. Without a 401(k) benefits plan in place, some of the best potential employees may not even consider a job with your company.

2. Assist Your Employees in Saving for Retirement
A 401(k) plan makes it easy for your employees to save money for the future. By contributing part of their salary to retirement planning, employees' funds are automatically deducted from their paycheck each payroll period. For employees that are not good at saving money for the future, a retirement plan does the work for them by moving money from each paycheck into a 401(k) savings account. An employee's 401(k) contributions are taken pre-tax which also lowers the employee's taxable income... as opposed to putting after-tax money into a regular savings account.

3. Provide Your Employees With Various Investment Options
Most 401(k) retirement programs provide employees with a variety of investment options including stocks, bonds, mutual funds, international funds, growth funds, balanced funds, utilities funds and more. Studies show that choosing the right balance of assets is the most important factor in determining your return on investment. Employees will need to consider things like their risk tolerance, long-term financial goals and how close they are to retirement age when deciding how their contributions will be distributed within their 401(k) account.