When you run a business, you want to attract the highest caliber of applicants to come and work for you. You also need to think about staff retention, because every time someone leaves it costs a significant amount both in terms of the costs of hiring a new member of staff and the loss of expertise. These are both reasons that employers turn to perks and benefits to provide a more appealing and rewarding place in which to work. What are the options for business owners, and how can you make the most effective use of such benefits?
Certain employee benefits such as workers compensation are set down in legislation, so anything you offer must be in addition to these statutory benefits. You need to be promoting the perks that set your company apart from the competition, so there’s no point using a universal benefit as an incentive. Offering benefits that will save your employees money can be an effective incentive, and could cover insurances, help with certain medical costs like dental and eye care, and retirement plans. Some of these schemes may involve the employee contributions as well as the employer, which must be made clear, but the advantages to running the scheme this way should be emphasized. There are many companies offering support services for these kinds of benefits, so shop around and see what plans will work best for you. Check the provenance of any company you are thinking of working with, and have a look at some independent assessments, for example, Blooom reviews for retirement planning. Bonuses for achieving targets and profit sharing are good for both sides, as the employer receives a high standard of productivity, while the employee has the chance to earn extra cash.
Benefits in kind
These are the perks of the job that don’t result in an immediate financial gain. Examples are staff discount schemes, free meals, access to company vehicles for private use, stock options, gratuities, funding personal development training that isn’t required for the job, time off, subsidized child care, subsidized gym or club membership and paid vacations. These benefits don’t affect the employee’s salary and are not exchangeable for cash equivalents, nor can they be used as a trade for a higher salary. Therefore, if you offer free gym membership and the employee says they don’t want that but will have the cash value instead, you don’t have to agree. Buying gifts for your employees has become popular recently, and you can now select from a wide range of rewards from companies that specialize in the giving of gifts as perks.
Before you get started on choosing which benefits to offer your staff, check your legal requirements to ensure you are complying, for example, if your business has grown and you are employing more than 50 members of staff, you would be liable for contributions to healthcare by law. Think about the type of people you want to employ and what is most likely to appeal to them, and calculate a cost and benefit forecast to see how implementing these strategies is likely to affect your business.