How HR Leaders Are Racing to Create Talent Magnets in 2025

A Blueprint for Turning PA Tax Incentives into Unbeatable Employee Value Propositions. The Complete Guide to Building a Future-Focused Benefits Package.?

In an era where the war for talent continues to intensify, Northeastern Pennsylvania (NEPA) employers have unprecedented opportunities to create compelling benefits packages that drive retention while maximizing tax advantages. This comprehensive guide explores how HR professionals can strategically combine the latest SHRM benefits data with Pennsylvania's innovative tax incentives and savings programs to create a competitive edge in talent retention.?

The Evolving Benefits Landscape?

According to SHRM's 2024 Employee Benefits Survey, 81% of employers rank retirement savings and planning benefits as "very important" or "extremely important" to their workforce. Yet only 49% of employers provide retirement planning advice, down from 58% in 2021. This gap presents a strategic opportunity for Pennsylvania employers to differentiate themselves through enhanced benefits packages.?

The Pennsylvania Advantage: A New Era of Tax Incentives?

Starting in 2025, Pennsylvania employers have access to groundbreaking tax incentives that can transform their benefits offerings. Starting in January, employers who make contributions to their employees' PA 529 and PA ABLE accounts can get a 25 percent tax credit on up to $500 in matching contributions per participating employee. This creates a powerful opportunity to enhance benefits while reducing tax liability.?

Strategic Integration of PA Programs?

PA 529 College and Career Savings Program?

1. PA 529 plans provide families with tax-advantaged savings and the flexibility to pay for a wide variety of education expenses. For employers, the benefits are multifaceted:?

• No-Cost Implementation: The program can be implemented at no cost to employers?

• Tax Advantages: 25% tax credit on matching contributions?

• Enhanced Employee Retention: Demonstrates long-term investment in employees' families?

• Competitive Differentiation: Only 8% of employers currently offer 529 plan payroll deductions?

PA ABLE Program?

PA ABLE accounts allow people with qualifying disabilities to save without affecting their means-tested benefits. For employers, this presents a unique opportunity to support diversity and inclusion initiatives while accessing tax benefits:?

• Employers can facilitate automatic payroll deductions at no cost?

• 25% tax credit on matching contributions up to $500 per employee?

• Enhanced support for employees with disabilities and those caring for family members with disabilities?

• Demonstrates commitment to inclusive workplace practices?

Keystone Scholars program?

The Keystone Scholars program provides $100 for every baby born to a PA family, creating a foundation for educational savings. HR professionals can leverage this program by:?

• Incorporating Keystone Scholars information into parental leave packages?

• Creating educational workshops about combining Keystone Scholars with employer-sponsored PA 529 contributions?

• Developing "new parent benefits packages" that align with the program?

Strategic Implementation Framework?

Assessment Phase?

• Audit current benefits utilization rates?

• Survey employee needs and preferences?

• Analyze competitor offerings?

• Calculate potential tax savings under new incentives?

Program Design?

• Create tiered matching contribution structures?

• Develop implementation timeline?

• Design communication strategy?

• Establish metrics for success ?

Integration with Existing Benefits?

According to SHRM's 2024 data, 88% of employers consider healthcare benefits extremely important. Create synergies by:?

• Bundling PA 529 and PA ABLE information with annual benefits enrollment?

• Incorporating savings program education into financial wellness initiatives?

• Aligning contribution matching with performance review cycles?

Communication Strategy?

SHRM's survey shows that professional development benefits are considered "very important" or "extremely important" by 65% of employers. Create a comprehensive communication plan that:?

• Emphasizes the educational and professional development aspects of PA 529?
• Share the benefits achieved by starting a dedicated education fund

• Highlights the tax advantages for both employer and employee?

• Provides regular updates on account growth and tax savings?

• Incorporates success stories and testimonials?

Measurement and Optimization?

Establish KPIs to track:?

• Participation rates?

• Retention metrics for participating vs. non-participating employees?

• Tax savings realized?

• Employee satisfaction scores?

• Recruitment effectiveness?

Creating Competitive Advantage Through Benefits Innovation?

Differentiation Strategy?

While 94% of employers offer traditional 401(k) plans, the combination of PA 529, PA ABLE, and Keystone Scholars creates a unique benefits package that:?

• Addresses multiple life stages?

• Supports diverse employee needs
• Supports financial well-begin & work lifestyle balance?

• Provides immediate and long-term tax advantages?

• Creates emotional connections through family support?

Retention Focus?

According to SHRM's data, family care benefits are considered important by 67% of employers. The PA program combination helps address this by:?

• Supporting educational savings for employees' children?

• Providing disability-related savings options?

• Creating long-term financial planning opportunities?

• Demonstrating employer commitment to family support?

Tax Optimization?

Maximize tax benefits by:?

• Structuring matching contributions to fully utilize available credits?

• Timing contributions for optimal tax impact?

• Coordinating with other tax incentive programs?

• Providing tax planning guidance to employees?

Future-Proofing Your Benefits Package?

Demographic Considerations?

The SHRM survey indicates evolving workforce needs. Address these by:?

• Creating flexible contribution structures?

• Offering varied investment options?

• Providing targeted education for different employee segments?

• Developing multi-generational appeal?

Technology Integration- Enhance program accessibility through:?

• Mobile-friendly account access?

• Automated contribution adjustments?

• Integration with payroll systems?

• Digital education resources?

Compliance and Reporting - Ensure program success through:?

• Regular compliance reviews?

• Automated reporting systems?

• Clear documentation procedures?

• Regular policy updates?

Conclusion: The Pennsylvania Advantage?

The combination of PA 529, PA ABLE, and Keystone Scholars, supported by new tax incentives, provides Pennsylvania employers in the NEPA region with unique opportunities to create compelling benefits packages. By strategically implementing these programs, HR professionals can:?

• Enhance employee retention?

• Reduce tax liability?

• Support diversity and inclusion initiatives?

• Create competitive advantage in recruitment?

• Demonstrate commitment to employee well-being?

The key to success lies in thoughtful implementation, clear communication, and ongoing optimization of these programs to meet evolving workforce needs while maximizing available tax advantages.?

Action for Success:?

• Review current benefits packages against SHRM benchmarks?

• Calculate potential tax savings under new incentives?

• Develop implementation timeline for 2025?

• Create communication strategy for employee engagement?

• Schedule regular review periods for program optimization?

By acting now to implement these programs, Pennsylvania employers can position themselves at the forefront of benefits innovation while creating sustainable competitive advantages in talent retention and recruitment.?

About the Author:

Edwin I. Aquino Escobar serves as the local service manager at Optavise, where the mission is to assist businesses in making sound decisions. By streamlining administration and clarifying benefits, Optavise enhances employee engagement and satisfaction while saving employers time and money with zero-cost pathways. With two decades of experience in managing and communicating employee benefits, Edwin offers an in-depth understanding of the unique challenges and opportunities businesses face, particularly in the NEPA region. For more information or to schedule a presentation, you can reach him at [email protected] or call 866-675-5210. ?