In today’s competitive labor market, small and mid-sized businesses face an uphill battle when it comes to attracting and retaining top talent. Offering benefits—particularly retirement plans like a 401(k)—can make all the difference. Yet for many businesses, the complexity and cost of offering such plans can be a challenge. That’s where Worksite steps in.
At Worksite, we specialize in partnering with small businesses to provide access to comprehensive benefits that rival those offered by much larger companies. By using a Professional Employer Organization (PEO), businesses can offer competitive 401(k) retirement plans, helping to build a more engaged, loyal, and financially secure workforce. Here’s how:
The Importance of Retirement Benefits for Small Businesses
Retirement planning has become a key concern for employees across industries. According to surveys from the Transamerica Center for Retirement Studies, a significant number of workers prioritize retirement savings when evaluating job opportunities. This means that even for small businesses, offering a 401(k) plan is no longer a “nice-to-have”—it’s a necessity to remain competitive.
Unfortunately, many small businesses don’t offer retirement benefits or provide very limited options due to cost constraints and administrative burdens. Without these benefits, business owners risk losing experienced, qualified employees to larger firms that offer more robust benefits packages.
How Worksite Bridges the Gap
A PEO offers a co-employment model that allows businesses to outsource many administrative responsibilities—including benefits administration—while maintaining full control over daily operations and workplace decisions. When it comes to 401(k) and retirement plans, partnering with a PEO can unlock access to more affordable, scalable options that would otherwise be out of reach.
Here are several key ways a PEO like Worksite can support your retirement plan offerings:
Access to High-Quality 401(k) Plans
One of the biggest barriers for Small and Midsize Businesses (SMBs) is gaining access to competitively priced, feature-rich 401(k) plans. On their own, smaller companies often lack the purchasing power to negotiate lower fees or provide multiple plan options.
With a PEO, however, your business becomes part of a larger group. This aggregated scale allows the PEO to offer plans with better investment options, lower administrative fees, and more favorable terms. In many cases, this translates into higher participation rates and better outcomes for employees.
Simplified Plan Administration
Managing a 401(k) plan requires time and expertise. Between regulatory compliance, fiduciary responsibilities, and employee communications, it can quickly overwhelm an internal HR team—especially in smaller companies where HR roles are often shared or part-time.
A PEO manages much of this complexity for you. At Worksite, we handle behind-the-scenes tasks such as plan administration, recordkeeping, compliance with IRS and Department of Labor regulations, and annual testing. This means fewer headaches for your team and more time to focus on growing your business.
Fiduciary Support and Risk Mitigation
As a plan sponsor, your business carries fiduciary responsibility for managing the retirement plan in the best interest of your employees. This includes everything from investment oversight to ensuring fair fee structures. Failing to meet these responsibilities can result in legal and financial consequences.
By partnering with a PEO, you can reduce your fiduciary liability. Many PEOs, including Worksite, offer fiduciary support as part of the 401(k) plan package. This includes oversight of investment options, monitoring of plan performance, and ensuring compliance with ever-changing regulations.
Employee Education and Engagement
Offering a retirement plan is only part of the equation—helping employees understand it is equally important. PEOs provide education, tools, and personalized support to help employees make informed decisions about their financial futures.
From onboarding and enrollment sessions to online portals and one-on-one financial guidance, Worksite helps ensure your team gets the most from their retirement plan. An informed employee is more likely to participate in the plan and feel confident about their long-term financial goals.
Real-World Impact: A Competitive Edge for Small Businesses
By offering a 401(k) through a PEO, small businesses can punch above their weight in the talent market. Retirement plans have become a baseline expectation for all employees—especially as concerns about long-term financial security grow.
But beyond recruitment and retention, these benefits also contribute to employee satisfaction, productivity, and long-term loyalty. When employees feel that their employer is investing in their future, they are more likely to invest in their work and stay with the company longer.
In fact, studies show that businesses that partner with a PEO grow faster, have lower turnover, and are less likely to go out of business compared to those that manage HR independently.
Making the Switch: What to Expect
Transitioning to a PEO doesn’t mean giving up control—it means gaining a strategic partner. When you work with Worksite, we start with a comprehensive needs assessment, then tailor your benefits package—including 401(k) and other retirement solutions—to fit your business size, goals, and workforce.
We’ll walk you through the setup process, help communicate changes to your employees, and remain a consistent point of contact for all retirement plan administration going forward.
Final Thoughts
A strong 401(k) plan is no longer just a perk—it’s a competitive necessity. And for small and mid-sized businesses, offering such a benefit doesn’t have to be out of reach.
Partnering with Worksite can help you access affordable, high-quality retirement plans while reducing administrative burdens and fiduciary risk. More importantly, it signals to current and prospective employees that you’re invested in their future—a message that resonates in any industry.
If you’re ready to enhance your benefits and level the playing field with larger employers, we’re here to help.
Contact the Worksite Team today to learn more about our retirement plan solutions for your business.
