Offer Supplemental Benefits
Ask your health-care provider how you can supplement existing benefits. You may be able to offer your employees new benefits and perks without spending a lot of cash. Some traditional providers offer such benefits as prenatal care, smoking cessation and weight loss programs, gym subsidies, onsite flu shots, CPR training and retiree health-care benefits. Then try adding a few new perks that your employees will appreciate and enjoy.
Consider Tuition Reimbursement
While paying for employees’ college costs can be expensive, tuition-reimbursement programs can be an effective way to recruit and retain good workers. It can help foster employee job satisfaction, improve productivity, and contribute to the overall success of your business.
Insure Your Employees Legally
Believe it or not, the only legally required benefit that you are obligated to maintain is workers’ compensation insurance, which you can self-insure in many states. There’s no such requirement for independent contractors. However, to protect against potential exposure for work-related accidents involving contractors and other third parties, you should maintain liability insurance.
Compensate Executives with Bonuses
Be creative when you develop executive compensation plans. Consider all types of options, including car allowances, life insurance, relocation payments, flexible start dates, signing bonuses, use of company-owned vacation property, health-club membership, tuition reimbursements, and other compensation that will make your package competitive and attractive. Offering non-monetary incentives like these will tempt talented candidates and help you keep them.
Don’t Be a Slave to Salary
Be careful about using salary increases as a primary retention strategy. It can quickly become an employee’s strategy to threaten to leave unless they receive a pay hike. This can subsequently become ingrained in your company’s culture. You might want to look into some type of employee ownership or stock option plan to improve employee retention and loyalty. Recruiting and rebuilding teams might also have to figure into your strategy.
Take Work/Life Issues into Consideration
Helping your employees maintain work/life balance can be vital to the health of your company. Employee burnout has a major impact on productivity, but that’s not its only negative effect. Overworked and overstressed employees are more likely to get sick and have high absentee rates. A lack of work/life balance affects an employee’s attitude. Unhappy workers are typically less efficient and can destroy morale. Burnout directly affects turnover rates. Employees can work at a frantic pace for only so long before they get frustrated and leave a company.
Give Employees a Say in their Health Plan
Before constructing or choosing a health plan, employers should find out what their employees want. After discussing options — and controlling their employees´ expectations — small business owners should contact an independent agent or broker who should be able to provide a full explanation of choices.
Pay Attention to Federal-Required Benefits
Certain federally mandated benefits, such as COBRA, FMLA, workers’ compensation, unemployment compensation, and Social Security, cover all employees on your payroll, regardless of how many hours they’re regularly scheduled to work. These benefits are based on complex factors such as the size of your company.