When it comes to employee benefits, one big question employers
may struggle to answer is, “Where’s the beef?” The question doesn’t
necessarily refer to salary, but to the overall value of company benefits.
Smart Business spoke to Leslie Balm-forth, chief operating officer of Tauber &
Balser, P.C. about how employers can
entice applicants and employees with their
benefits packages.
How valuable is a benefits package?
Turnover costs can easily range between 50
percent to 60 percent of an employee’s annual salary. Clearly, you want to hire the right
people and avoid having to quickly replace
them. However, you must be able to offer
applicants and employees benefits they value
or you’ll struggle to recruit and retain them.
What standard benefits should you offer?
By law, employers are generally required to
provide workers’ compensation insurance,
withhold Social Security and Medicare taxes,
and provide time off to vote and to fulfill civic
obligations such as jury duty and military
service. Additional requirements may apply,
depending on the state.
Employers typically offer a standard benefits package, which usually includes:
health insurance, often with dental and
vision plan options; disability insurance;
life insurance; a retirement plan; paid vacation, national holidays and sick leave; and
paid or unpaid time off for religious holidays and bereavement.
These benefits are considered staples to
attract potential employees and retain
them once they’re hired. Health benefits
are particularly important, because they
can be difficult and costly for employees to
obtain on their own, especially if the
employees are older or have existing
health conditions.
What are some creative benefits that will add
more sizzle to the package?
Some added benefits employers are throwing in to attract and retain employees
include:
Child care assistance. If your business
employs many working parents of small
children, you may consider teaming up
with a local day-care provider to offer a
subsidized program for employees.
Education assistance. Employers may
offer to pay for part or all of employees’
continued education or training as it
relates to current jobs or future job potential. This includes tuition, books and any
required supplies.
Health and wellness solutions.
Helping employees attain and maintain
wellness not only boosts their productivity,
but also can reduce your business’s insurance costs. Offerings include on-site exercise facilities or a subsidized program with
a local health club and health seminars for
employees.
Product and service discounts.
Another cost-effective employee benefit is
a discount on your company’s products or
services. You also may find local vendors
willing to negotiate discounted arrangements for your employees. For instance,
you might approach a local bank, financial
planning or legal firm, clothing store, dry
cleaner, restaurant, hotel or cinema.
Commuting assistance. Commuting costs can run high for employees who have
to travel long distances or live in major
metropolitan areas. Consider subsidizing
the cost, for instance, by offering free
monthly passes for public transit or parking garage spaces.
Flexible work arrangements. Balancing work and personal life is a challenge for many employees these days —
whether they’re trying to attend school or
manage a long commute. They may also
have to care for young children, elderly
parents or both. To help employees
achieve better balance, some employers
are offering modified work schedules.
For instance, you might let workers start
and leave earlier, or later, to avoid rush
hour traffic jams or accommodate dropping off and picking up children at day-care
or school. Other flexible arrangements
include having employees work four 10-hour days with the fifth day off, or work
from home and come to the office only for
training and staff meetings.
Concierge service. For busy employees
who find it difficult to tend to essential personal errands and home maintenance
issues, some companies are appointing an
individual or team to handle these chores.
Special pampering. Massages, spa days
and even vacation cruises are a great way
to reward hard-working employees.
Do the benefits outweigh the costs?
Beefing up your business’s benefits obviously requires you to bear some upfront
costs. In the long run, however, you stand
to improve your ability to recruit and retain
top talent, and increase employees’ morale
and productivity. Meet with your accounting and legal advisers and a benefits consultant to evaluate potential options and
perform a cost-benefit analysis.
LESLIE BALMFORTH, CPA, is a principal at Tauber & Balser,
P.C. and serves as chief operating officer. She is responsible for
managing the financial and operational aspects of the firm including human resources, marketing, employee benefits, technology,
facilities management, cash management and internal accounting. She is also a member of SHRM and Tauber & Balser’s Family
Business Services Team. Reach her at (404) 814-4985 or [email protected].