The fast-paced, dynamic nature of the hospitality industry often leaves little room for thought about retirement. Young and energetic, those working in hospitality are dedicated to their craft, putting in long hours and embracing the endless rush of business.
The allure of a career in hospitality lies in competitive pay, flexible hours, and the sense of community that comes with it. However, these attractive aspects do not always translate into long-term security. Unfortunately, many hospitality employees lack access to retirement plans, which is a stark contrast to what many of their corporate counterparts are offered. Shockingly, only about 30% of hospitality workers have access to a 401(k) plan at work, and a mere 13% participate, according to data from the RI Hospitality Association’s partners at Napier Financial.
The Rhode Island Hospitality Association (RIHA) is keenly aware of this gap and has taken a proactive step to address it. Launched in partnership with Napier Financial, The RIHA Group 401(k) Plan aims to provide a comprehensive solution for the entire hospitality industry.
This innovative partnership addresses several crucial aspects of retirement planning for both employers and employees. The RIHA Group 401(k) Plan helps reduce the administrative burden associated with sponsoring a retirement plan, leading to lower administration expenses for businesses. It also helps employers attract and retain top talent by offering valuable retirement benefits.
One of the key objectives of this partnership is to make retirement planning accessible to all hospitality workers in Rhode Island. By simplifying the process of offering a retirement plan and providing financial education at the same time, the program seeks to increase employee participation rates.
For hospitality industry businesses in Rhode Island that already offer 401(k) plans, transitioning to the RIHA Group 401(k) Plan can be a wise move. It’s not only cost-effective, but also streamlines administrative responsibilities, eliminating the need for a plan audit. For those businesses that have yet to implement a plan, starting with the RIHA Group 401(k) Plan is a cost-efficient choice, as it comes with no out-of-pocket startup costs or ongoing fees.
In an industry where competition for talent is fierce, enhancing employee satisfaction is vital. By offering retirement benefits, you’re not just securing your employees’ futures, you’re also making a commitment to their well-being that begins paying dividends today.
When you show your staff that you care about their long-term financial security, it strengthens their dedication to your business. The benefits are mutual. Your business becomes more attractive to potential hires, and your existing staff feel valued and empowered to save for life after retirement.
The RIHA Group 401(k) Plan is a game-changer for the hospitality industry in Rhode Island. It offers a pathway to a more secure future for both employees and businesses, in an industry that never stops. As we take steps to improve employee satisfaction and strengthen our workforce, the RIHA Group 401(k) Plan stands as a beacon of hope, ensuring that employment in the hospitality industry can also be a source of long-term financial security.
If you’re an RIHA member interested in learning more about the program, you can reach out to Retirement Plan Specialist Adam Dani, who serves as our liaison at Napier Financial. He can be contacted via email at adani@napierfinancial.com, or by phone at 781-884-2354.
More information on The RIHA Group 401(k) Plan can be found here: https://www.rihospitality.org/pdf/2022/401k-Flyer.pdf
