For many companies, high employee turnover comes at a substantial cost. 

When you replace entry-level employees, it can cost anywhere from 30 percent to 50 percent of their annual salary. It can cost 150 percent of a mid-level employee’s annual salary to replace them. And, for high-level or specialized employees, replacement can cost up to 400 percent of their annual salary.So, how can you combat the high cost of turnover and keep your valued employees?

Merely offering a 401(k) plan isn’t enough in today’s competitive job market.

In a world where workplace culture, benefits and other perks are increasingly important when people consider employment, employers need to add value to their employee benefits. 

Your current 401(k) plan may be the result of simply taking the path of least resistance.

Perhaps the plan sponsors wanted to simplify the process and costs, and chose a plan based on convenience. Taking shortcuts might have seemed easier at the time, but it usually means you’ll need to switch 401(k) providers later to find the plan that actually works for your company.

Including a high-value 401(k) plan as part of your employee benefits package has a positive impact on your company and on the financial well-being of individual participants. A good way to think of the value your plan offers is to compare the level of fees the plan currently bears to the level of services and benefits it provides.

A 401(k) plan isn’t something you just set and forget. Unless your plan sponsor and trustees carefully review the plan fees each year, the costs tend to grow until they’re far too high compared to the level of service you’re receiving.