When it comes to selecting a provident fund for your employees, it is important to ensure that you explore all of your options before making a decision – after all, you will be contributing towards their retirement. Provident funds are one of the easiest ways in which to invest money, making them the number one choice for employers who are looking to offer their employees a competitive employment package. Not only do provident funds make career opportunities look more appealing, but they also ensure that you retain your staff for longer periods of time.
If you are posting job opportunities and vacancies within your organisation, the chances are high that you are looking for candidates who are going to stay with you for the long haul. However, it is important to take into consideration the elements that attract valuable employees, and a provident fund is one of the factors that appeal most to employees who are looking to ensure a secure financial future for themselves. However, it is also important to take note of the fact that a business is required to contribute to the fund which, ultimately, makes it a good investment for both parties. Here are the top three tips to keep in mind when selecting a provident fund for your employees:
- Define what it is that you are looking for
When it comes to choosing a provident fund, the best course of action is to make contact with a service provider and chat to him or her about what it is that you are looking for. It is important to keep in mind the fact that the size of your organisation and your annual revenue will affect your oval decision on which option is best suited for your business and the future of your staff. When opting for a provident fund, it is also important to ensure that you do not treat it as a surplus amount. If you find a financial advisor that can assist you in deciding on the best option, be sure to ask a variety of questions on how the fund will benefit the business and not just the employees. The best way in which to define what it is that you are looking for is by taking a look at your financials, the needs of your staff, and the way in which your current employment packages can be optimised.
- Iron out the monthly contributions
It is important to take note of the fact that in South Africa, the employer is generally the one who makes the contribution due to the fact that he or she receives a deduction on provident fund contributions. However, there are a handful of options that allow contributions from both the employee and the employer – the best way in which to identify which option is the best fit for your company is to take a look at the overall turnover of the company and the individual salaries of your employees.
- Avoid withdrawal before retirement
If you are chatting to your employees about the option of implementing a provident fund, it is important to ensure that both you and your employees take note of the value of a provident fund – it earns interest over a period of time, and if withdrawn before the age of retirement, can yield very little interest. Encourage your employees to educate themselves on the value of a provident fund, and ensure that they understand its purpose as this will ensure that they reap the benefits when they need the money in the future.
If you’ve made a decision on a provident fund and now need to turn your attention to your recruitment solutions, be sure to contact PNet Solutions – not only will they assist you in finding the perfect candidates for your available career opportunities, but they will also assist you in streamlining those who apply to fill the various job opportunities.