How companies in the commercial construction industry are addressing the worker shortage in their respective organization varies greatly. From compensation to prefabrication, they are doing what is necessary to meet their needs in recruiting and retention. So, with July being National Retirement Planning month, I’d like to mention an option that can go a long way in meeting both companies’ and employees’ needs.
A 2016 Employee Benefits Trend Study revealed that employees were depending on their company to provide access to retirement benefits and that 70% of employees surveyed stated that a 401(k) plan was a “must have” benefit. It underscored that companies that offer a retirement plan can have a big impact on their employees’ future.
The same study one year later revealed additional information about what employees are looking for related to company benefits:
- Expertise from trusted and knowledgeable sources – to ensure they get the help they need
- Clearer information about the benefits – to make sure they are getting what fits their needs
- Simplified process –easing the decision making process reduces the stress level
Since its inception in 2010, the AGC Southwest Chapters 401(k) Plan (formerly known as the AGC Houston Multiple Employer 401k plan) has seen a continual upward trajectory in the number of participating companies, participating employees and the investment dollars. However, equally impressive has been the attention to improving and delivering the services associated with the plan itself.
For the employee:
- Over 40 investment options from which to choose
- Focus on keeping the cost basis low to deliver higher returns
- Multiple educational programs annually to keep participants up-to-date on the plan as well as investment advice
- Access to investment advisors for individual retirement needs (no matter where you are on your career path)
For the company:
- Advisory Committee of participating members, financial advisors, third party administrator and record keeper providing expertise
- Customizable plan designed to meet the needs of the individual firm
- Annual company specific plan review, including comparison to like companies of size and structure
- TPA support to reduce plan maintenance time and cost
- Annual plan audit performed for the entire plan; no individual company audit, regardless of size
- Annual Form 5500 filed by the plan as whole; no individual company Form 5500 is required
Currently, the AGC Southwest Chapters 401(k) Plan has investment assets of over $310,000,000 with 96 participating employers. There are many reasons why each company has opted to join: recruit or retain employees, take advantage of the strength in numbers, benefit from the knowledge and expertise of the advisors or simply to remove the worry associated with plan maintenance. But while the reasons for a company joining – and for an individual participating – may vary, the one common denominator is that the AGC Southwest Chapters 401(k) plan is being directed and carefully watched over in the best interest of both the employee and the employer.
For more information on the plan, contact Steve Ellsworth or Robert Brann at 888-792-7650 or mep@rwbaird.com
