The Executive Office: Increase Employee Retention With This No-Cost Benefit
While hiring new employees can be a challenge in today’s job market, retaining high-quality, long-term employees can be just as difficult for employers.
Many employers are looking for cost effective ways to make their business a more competitive option for job seekers, while showing appreciation and dedication to their current employees.
Today’s workforce faces countless challenges, and many families struggle financially to afford the rising costs of higher education for their children. Employers in New Mexico have the option of adding a significant employee benefit at no additional cost by offering the state’s 529 college savings plan – The Education Plan®.
Providing employees with the ability to easily save for future education expenses for themselves or their children is a thoughtful perk that has the power to boost employee morale and retention. For employers, employees with strong benefits are often more engaged and work harder.
The Education Plan® can be implemented at no cost to employers and requires no government reporting, making it a quick and easy way to show your gratitude to those who make your business thrive. Contributions can be made directly from payroll, and employees can start saving with as little as $ 1. Offering a 529 savings account as part of a competitive benefits package is a great way to attract and retain the right employees.
For employees, the plan not only covers higher education costs for themselves or a loved one, but it also offers tax benefits. Contributions are deductible from New Mexico income tax and the funds grow tax free. Withdrawals are tax-free if used to cover education expenses, including tuition, housing, meal plans, books, supplies, computers, and fees. The funds can be used at any vocational or business school, vocational school, college or university.
Whether a person is looking to improve their future through higher education or to save for their children’s education, a 529 plan is an invaluable asset to offer as part of a benefit package. For employers looking to further increase their benefit offerings, matching contributions are an optional add-on.
Student loan debt is a harsh reality for many New Mexico families. By adding The Education Plan® for your employees, you can help take the stress out of saving for education expenses and help ease the burden of future loans.
The Education Plan® can give businesses a competitive edge in both recruiting and retention, making it a win-win for everyone involved.
The Executive Office is a guest column providing advice, commentary, or information on resources available to the business community in New Mexico. To submit a column for consideration, send an email to [email protected]