Creating and Using an Employee Benefits Policy
Many small business owners claim their greatest challenges are attracting, retaining and motivating their employees. It is essential to keep turnover low and productivity high, while offering an attractive benefits package. Benefits are often the key elements in an employee's decision to work for your company. Salary levels are only one part of the package.
Why do employees choose to work for your business?
Financial rewards are an important part of the total benefits an employee receives. However, an employee's decision to work for your company is most likely based on additional factors, many of which are within your control. In addition, there are some things that can increase employee satisfaction that do not cost additional money. The key is to make sure the total compensation an employee receives is adequate, understood and appreciated.
Benefits that cost money
Along with wages, company contributions to a retirement plan and company paid insurance are usually the most expensive parts of total compensation. If your company has a qualified retirement plan, make sure the type you offer is "economically" effective. By that, make sure your employees are fully aware of it and recognize that your contributions to it are part of what they get for working. You may also want to review other types of plans such as SEPs, SIMPLE IRAs and 401(k) options.
If you offer company paid insurance plans, make sure employees recognize that you are paying for some or all of it. If insurance costs rise, you may want to consider having employees pay some portion of the cost. This can be effective if there are choices of health insurance plan options (deductibles and co-pays) that have varying costs.
Benefits that cost little or no money
The work environment and the personal satisfaction an employee gets are also important parts of the total compensation an employee receives. No one likes to spend time in an environment that is emotionally uncomfortable. There are also the federal and state laws that protect workers from harassment and discrimination in the workplace.
Here are some ideas that can help boost employee satisfaction:
These opinions are those of its author and not Provident Bank. You should consult a professional regarding your specific business needs.