Can’t offer what the big guys pay? Worried about employee turnover? Don’t worry, there are other ways to keep valuable employees on board than paying sky-high salaries. While a hefty salary is great, it is not always the most important aspect of an employee’s compensation package.
The cost and time associated with finding and training the right employees for your team can be a strain, especially on smaller businesses, where everyone has to wear multiple hats. Retaining employees for longer periods can save employers both time and money, but it can be difficult to compete with larger companies that can offer better salaries and/or bonuses. If you’re in this boat, don’t panic. Today, many employees see the bigger picture – more than just what’s on their paychecks – and want to feel like they’re getting more from their employer. Consider building a benefits package that adds value to the salary range you offer.
Since it’s your benefits package, you can design and change it as you see fit including what’s offered and how much you contribute on the employees’ behalf. Obviously, the “big three” employee benefits are Medical, Dental and Vision insurance, all great to have in your bag…but consider a few alternatives, some of which may cost just a few dollars per month. Long and Short Term Disability or Life/AD&D (Accidental Death or Dismemberment) insurance, for example, are great add-ons. You could also consider more out-of-the-box options like an Employee Assistance Program (EAP) or AFLAC products. Your Medical carrier may dictate a mandatory minimum contribution; however, your contribution to all other options is up to you.
Adding benefits to your compensation package can help you in multiple ways as an employer. You’re able to stand out from your competitors by offering something they may not have; you won’t incur additional tax expenses on benefits like you would an increase in salary; offering something outside of pay helps employees feel like they’re getting more, even if they don’t know the exact amount you’re paying on their behalf. As a bonus to your employees, for the benefits you choose as pre-tax deductions, your employees gain the benefit of reduced taxable wages.
Retaining employees can be a challenge for any company; having a few tricks up your sleeve to keep them with you doesn’t have to be.