Although recessions maybe tougher times to make sales, they are the perfect time to get the top talent. Jobs are harder to come by and a lot of qualified talent is standing in unemployment lines with their resumes in hand, ready to work. Despite this fact, there are still vital forms of compensation top level talent looks for in an ideal workplace. For example:
- Culture/Work Environment
- Hours & Flexibility
- Extended health and dental benefits
- Flexible Employee Benefit Plan
- Profit sharing
- Cost plus
Giving Tax-Free Raises
If you have a top executive making 150k a year, most of any raise received goes to taxes. By placing key executives in a different benefit classification than the rest of your employees you are able to offer them enhanced benefit options instead of pay raises. Most employers aren’t even aware they can create separate classifications with their employee benefit plan, referred to as a FLEX Plan.
By offering key executives value instead of money, it will give them more spendable dollars and you will pay less in payroll taxes. This strategy will help you attract highly qualified executives and sales people from your competitors.
A Vital Part of Compensation
Benefits are not just important to executives and senior management, they are also a vital part of compensation for lower income employees. The reality of taking care of our families and ourselves is expensive but vital to our health and well being.
A properly designed benefit plan will lift the paralyzing stress of financial burdens associated with medical care costs.
We all know that shopping down the organic foods isles can get pricey and so is much of the food that is generally perceived as “more healthy”. Because of this, we see other things taking a priority over health in people’s wallets. As employers, we can’t put the food in their basket when they are shopping at the grocery store but we can offer tools for maintenance and care through an employee benefit plan.
Maintenance Is Key To Good Health
Going to the chiropractor isn’t covered by government health care but can play a critical role in the ongoing maintenance of employees, especially those in industries like construction. An employee benefit plan can also help workers that are burdened by the costs of expensive maintenance drugs for issues like diabetes and blood pressure problems.
Helping with these costs is like lifting a weight off the shoulders for many of your employees and research suggests that it pays off. 76% of small businesses believe that taking better care of their employees has made them work harder for the company.
This shouldn’t be surprising for many of us. If you feel like someone is taking care of you, there is an instinctive drive to reciprocate. By providing your workers with an employee benefit plan they will use, you can reduce turnover while increasing productivity and overall health.
Making the right decision isn’t always easy so I encourage every business owner to download the free eBook: 3 Mistakes Employers Make When Buying An Employee Benefit Plan. It is a valuable insight into how major insurance companies price their plans, how to measure the ROI of your benefit plan and other insider info that could potentially save you thousands.
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