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.
For business owners who don’t currently offer retirement benefits but plan to start in the future, 23% say it is because a 401(k) plan is now more important for attracting and retaining employees as a result of the ACA.
Three out of five small business owners who offer retirement plans (58%) say they plan to increase contributions, and 19% of business owners who don’t currently offer 401(k) plans say they will offer them in the future.
