Small businesses are using a classic benefit to stay competitive in attracting and keeping workers

A higher share of US job postings mentioned 401(k) plans than several years ago.

Daisy-Daisy/Getty Images Small businesses can attract and retain staff with 401(k) plans.

Business owners can offer it in lieu of more costly benefits that they can't yet afford.

It can help reduce first-year quits, a Gusto analysis found.

Sara Marye wanted to get more serious about the benefits she offered.

Several months after promoting a part-time employee to full-time status at her school-curriculum small business in 2024, she wanted to ensure it remains an attractive place to work.

"If I want to keep her, I need to give her reasons to stay," said Marye, an educator turned entrepreneur in 2015 when she started The Stellar Teacher Company.

The employee had been working there since 2021.

Marye thought about what she could afford that she could add on top of the existing flexible perks.

Offering a 401(k) plan was the answer, a perk that would also benefit Marye herself and help with retention beyond the full-time worker.

Most of her four part-time workers are former teachers who still want to be involved in education while staying home as parents.

"The fact that they are able to have a part-time job with a 401(k), I think, gives them just a lot more comfort in the fact that they aren't having to sacrifice their future financial security for the time that they want to spend raising their family now," said Marye, who has been offering the 401(k) plan since 2025.

When small businesses are starting out, they have to figure out how to get off the ground, market their work, and manage their expenses.

As businesses make a name for themselves, grow their profits, and staff up, they need to figure out how to attract and retain employees.