Explore high-impact, low-disruption strategies to reduce costs while keeping your benefits competitive.
We are often asked how companies can reduce overhead without sacrificing employee satisfaction. Did you know that your retirement plan, healthcare strategy, and employee retention initiatives may be hiding thousands of dollars in easily achievable savings?
If you haven’t revisited these areas in a while, now’s the time. With a few adjustments, you may be able to uncover retirement plan cost savings, improve employee engagement, and reduce taxes for your organization.
Here are three creative ways to unlock potential cost savings without compromising your employees’ experience or benefits package.
1. Review your investment menu
One opportunity for retirement plan cost savings is your investment lineup. If your plan includes high-cost mutual funds or an outdated, overly complex investment menu, there’s a good chance you could be paying more than necessary.
A streamlined menu built around collective investment trusts (CITs), exchange-traded funds (ETFs), and low-cost index funds could reduce total plan costs significantly – often without impacting performance or participant choice.
Beyond fund selection, this could also be a good time to conduct a retirement plan review to make sure that your plan is following fiduciary best practices and you're not overpaying for services, technologies, tools, or resources as compared to what’s typical for plans like yours.
2. Audit your healthcare plan
It’s easy to renew your group healthcare plan each year without giving it much thought. But small plan design changes, like adjusting deductibles, re-evaluating network structure, or adding supplemental options, can create measurable savings without reducing coverage.
“Most companies assume their healthcare plan is competitive, but our reviews often find outdated pricing models, misaligned contribution strategies, or missed opportunities for bundling,” said Joshua Jefferies, Co-Founder of HealthPlanIQ. “Benchmarking your health plan against your peers annually can unlock real savings, improve designs, all while ensuring ERISA compliance of a prudent Fiduciary process.”
3. Invest in retention instead of rehiring
Turnover is expensive. Depending on an employee’s role and seniority, replacement could cost anywhere from 50% to 200% of their salary. That adds up quickly, particularly in today’s low-hire, low-fire labor market.
However, one of the simplest employee retention strategies is to strengthen your benefits offering. When you invest in retention through education, engagement, and family-friendly perks, you may be able to reduce turnover and improve culture. Even better, strategic retention efforts may qualify you for expanded tax savings for employers.
Passed in 2025, the One Big Beautiful Bill Act (OBBBA) includes several new or enhanced tax provisions employers should be aware of, including:
- The R&D tax credit: Available to businesses investing in training, process improvement, or innovation, not just traditional research. Many employers qualify without realizing it.
- Childcare credit: A tax break for employers who provide on-site childcare, partner with local providers, or reimburse dependent care costs.
- Qualified Business Income (QBI) deduction: Now made permanent, this allows eligible pass-through entities to deduct up to 20% of qualified income.
- Section 179 deduction: Allows businesses to deduct the full cost of qualifying equipment or software in the year they’re purchased, instead of depreciating over time.
- No payroll taxes on tips and overtime: Select roles and industries may be eligible to exclude tips and overtime from taxable wages under new provisions.
These credits and deductions reward companies that invest in people and productivity. They may not apply to every business, but a simple review with your tax professional could help to determine where you might qualify.
Review, rethink, save
Yes, reviewing your retirement plan, benefit offering, and tax strategy takes time. But imagine what you could do with the potential annual savings? These aren’t extreme cuts. They’re thoughtful, strategic changes that reduce budget leaks and help you maintain competitive, high-impact benefits that support employee satisfaction and long-term loyalty.
If you’d like help reviewing your plan or exploring potential savings opportunities, let’s talk.
It’s worth taking a closer look. Because sometimes, the biggest savings opportunities are hiding in plain sight.
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