Finding good employees can be a tough job.

It’s not that there aren’t plenty of good potential employees out there, but attracting them takes more than just writing a good want ad or even offering a competitive salary.

You may feel that you can’t keep up with the larger businesses when it comes to providing perks and benefits, but there is one thing that may be more important to potential employees than the shiny, flashy perks that larger companies can offer: a good retirement plan.

Take a look at the importance of a retirement plan for attracting the very best employees to your small business….

How Important is a Retirement Plan?

The great thing about offering a good retirement plan is that all kinds of employees are thinking about them.

The article “Planning for Retirement Through Life’s Changes” does a good job of explaining how employees of all ages are thinking about and planning for their retirement years.

You may be looking to attract fresh new minds just out of college, or experienced and seasoned employees with years of experience in their field. Or you may be holding out for a diverse mix of employees.

No matter which it is, the one thing that you can be certain of is that they’re all thinking about is how to make certain that their needs are taken care of in later years.

What Kind of Retirement Plan Should You Offer?

401(k) plans are so often talked about that it can be easy to forget that they’re not the only type of retirement plan available for small businesses to choose from.

Not that there is anything wrong with a 401(k) plan if that’s what’s best for your business and your employees. 401(k) plans have many advantages. They’re the plans that offer the most flexibility, and they allow employees to contribute the most to their own retirement.

However, you should be aware of your other options as well.

Your needs may be better served by a SEP IRA.

This is a plan that’s solely employer-funded. It’s easy to start one, and while it omits some of the things that make 401(k) attractive, like the loan option or catch-up payments for older employees, but on the other hand, it requires less reporting and fewer IRS tests. This may be preferable for employers who need a simpler option than the 401(k)

Another viable option is the SIMPLE IRA.

It allows for both employee contribution and employer contribution, and it also offers the catch-up payments for employees over 50 that the SEP does not.

It still doesn’t have loan options, but it is affordable, and like the SEP plan, it bypasses some of the more complicated reporting and IRS requirements.

You’ll need to consult with your tax planner and take a close look at your finances before picking a retirement plan for your company.

But no matter which plan you ultimately decide is right for your company, the addition of a retirement plan will improve your ability to attract the best and the brightest to work for your small business.

About the Author: Cheryl Baer covers retirement and business topics on the web.