Most PCOs Don't Offer a 401(K) or Comparable Retirement Plan

CLEVELAND - In today's competitive job market, many business owners offer 401(K) or comparable retirement plans to help attract or retain full-time employees. While this benefit undoubtedly makes a business owner a more attractive employee, it takes a significant amount of time and money to sponsor such a plan. And 401(K) or comparable retirement plans might not make sense for businesses, like pest control companies, that employ a lot of seasonal and part-time workers. Results from a recent PCT Poll show that most PCOs (79 percent) do not offer a 401(K) or comparable retirement plan, while 21 percent do offer such plans.

Kurt Trefz, director of Cascade Pest Management, Snohomish, Wash., said Cascade has a plan that matches a certain amount for an IRA plan — not a 401K. “I think it matters when employees make a decision to work for us,” he said. “Unfortunately, that doesn’t always translate into participation as my sense is that younger employees are more concerned with using the money now and not necessarily saving.”

Freedom Pest Control, Merrimac, Mass., offers employees a 401(k), with a match anywhere from 3.5 to 4.5 percent, depending upon their contribution. Freedom Pest President Tom Drapeau said, “I feel it’s extremely important in today’s marketplace to look at not only the success and the longevity of the company but to make sure that we are taken care of our employees also in regards to retirement.”

Similary, Neighborly Pest Management, Sacramento, Calif., offers a 401(K) with an employer match of up to three percent, owner Jim Steed and vice president Sean Bradley strongly advocate for participation. “When employees fully understand the importance of this benefit to their retirement as well as the other benefits that are possible then almost all join,” Steed said.

Steed said he and Bradley regularly hold discussions about this important benefit and encourage other employees to share success stories if they would like. “Because of this program we have had five employees become first time homeowners,” he said. “For me it’s a must have for any-sized company.”

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