Small Businesses Focus More On Retirement Benefits

Small business owners are finding that the implementation of the Affordable Care Act (ACA) has decreased the appeal of health care benefits to employees and increased retirement plans’ importance as a tool to recruit and retain employees. That’s one conclusion drawn from a new survey conducted by Harris Poll on behalf of the Nationwide insurance company.

Pollsters found that 29% of small business owners (those with fewer than 300 employees) that offer 401(k) plans and plan to increase contributions say that they are doing so because the ACA has made health benefits less attractive to employees.

Additionally, 43% of business owners who plan to increase contributions to their company’s 401(k) plan say they are doing so because their plan is now more important for attracting and retaining employees as a result of the ACA.