Employees love benefits, and they are one of the key factors which will attract candidates to an organization. While many employers feel that benefits always come at a cost to the company, there are some that can actually save the business a lot of cash. Understanding employee benefits and how to use them is the key to success, and below are some ideas that you may want to consider.
Offer a College Savings Plan
Employees who are parents or who intend to become parents will find this benefit very attractive. Higher education is expensive, and the sooner parents start preparing for it, the better. A college savings plan, which is also known as a 529, is a direct payroll system where contributions are regularly made to the account which can accumulate free of taxation. Once the money is withdrawn and used for expenses such as tuition it will remain tax free. Each state offers a specific 529 plan, and you will need to do research on the one which is relevant to your area.
Offer an Easy to Use Retirement Plan
Many employers, especially small businesses, are reluctant to offer retirement plans due the complexities and legalities which are associated with them. However, times have changed and there are a variety of options out there, including plans which are designed for smaller enterprises. The money set aside for retirement will remain untaxed, and you can also offer matching funds, which means that for every dollar or more than your employee places in their account, you will match it with funds of your own.
Childcare is a major issue for employees who are parents, especially if they have small children or infants. These employees are more likely to be tardy or absent altogether as a result of having to care for their children. Offering daycare services on the premises can be a great way to help these employees become more productive, because they don’t have to worry about driving across town to a daycare center when their children are located in the same area. Businesses that offer daycare save money over the long term because they will have lower turnover and absenteeism which means higher productivity.
The days of the paper check are rapidly coming to an end. Few employees want to drive across town in traffic just to reach a bank and then stand in a line to get their paycheck. Direct deposit eliminates this hassle because money is electronically placed in the employee’s bank account, which means that all they need to do is use their debit card to access the cash. As far as the employer is concerned, research shows that switching from paper checks to direct deposit can save the employer over $3 per payment.
While many employers are reluctant to offer benefits, doing so will attract and retain the best workers while simultaneously slashing administrative costs and unnecessary overhead. Regardless of how large or small your company is, if you haven’t implemented any of the benefits above you should consider doing so.