Ahhhh---feel the ocean breeze blowing through your hair, your toes digging into the sand, and the cool drink in your hand. Your computer is nowhere in sight. That’s right, you’re on vacation!
As an employee, taking time off is important. It keeps you focused, gives you a break and lets you spend some quality time with your family or friends. As a company, administering a paid time off (PTO) policy is also important, and much less relaxing than taking the time off.
With traditional PTO and sick time plans, your company is trying define and limit the liability of paying an employee for time they didn’t work. Sounds simple.
But how do you keep track of it all? Without a streamlined system it can be easy to miscalculate PTO for your employees. Miscalculations mean lost money for your company. According to a 2010 survey by Kronos conducted with Mercer, poorly planned absences cost U.S. organizations over 8% of their payroll each year.
What would you say if a prospective employer offered you perks like free catered meals, free fitness classes, tuition reimbursement, unlimited vacation days, and-- for the expectant parents out there-- four months of paid parental leave?
You might be tempted to rip the contract out of his or her hand and sign it on the spot—right?
Well, we didn’t make those up. Practical benefits like these are real, and some are being implemented at companies that constantly rank at the top of employee satisfaction lists.
Imagine you’re the CEO of a company with 49 employees. You’re currently covered through a fully insured health plan, but are considering switching to a self-insured group plan due to the potential premium increases resulting from the Affordable Care Act.
All of the companies you know with self-funded plans are larger companies (250+employees), so you aren’t sure if this is the right solution for you. You’re also concerned that since you would pay self-insurance claims directly, your company could be liable for a major claim if an employee has a serious health issue.
What do you think - what would you do in this situation? Before you make a decision, consider the following key points.
What happens when you have a major claim on a self-insured policy?
More than 60% of employees in the USA are paid by direct deposit, and the number will only continue to grow.
Benefits for Employees
- Quick: No more waiting in line to deposit your check at the bank, or sending the paper check to your bank through the ATM or your phone app. Now you can be sure the money gets to where it needs to be.
- Convenient: Employees don’t have to worry about being in the office to get paid. If they are on a vacation or out sick, they can be assured the deposit will be made. They can also control which account the paycheck goes into- maybe they choose to direct funds to a retirement savings plan or a checking or savings account. Bills can be paid immediately online as soon as a deposit is made.
- Green: Reduces a company’s carbon footprint, and offering online pay statements that are available 24/7 would also contribute to the green impact.
A recent NIH funded study looked at medical expenditure bills that represented more than 8,303 emergency room visits and came up with two startling conclusions:
- There are huge variations in prices.
Bills sent out for sprained ankles ranged from $4 to $24,110.
- Prices overall are really high.
The average emergency room visit cost 40 percent more than an average month’s rent (or $1,233 as the average rent is now $871 per month).
According to a Wells Fargo study, 37% of people expect to work until they die. That’s an alarming number, but one that you can use to your advantage.
Most people would rather spend their later years comfortably enjoying their retirement, so by offering a quality 401k plan, you give your business a step up in attracting and retaining quality employees.
Avoid Financial Confusion: Educate Your Group
Before we give you the key elements to a great 401k plan, it’s worth taking a moment to remind you that financial choices can be intimidating and confusing for many employees. One way you can help is by making an effort to ensure employees are educated about their choices. These resources will help make sure everyone is on the same page.
As a small business owner, you probably rely on the services of other organizations to accomplish a range of tasks, services and other duties. Your health insurance broker or policy provider is one you expect has your best interest in mind. The reality is, they may not, especially when it comes to premium and individual claim costs.
With all your other responsibilities, you don’t have time to keep tabs on everything your health insurer does, however, there are some key questions you need to ask in order to effectively evaluate just how much they are working for you:
With today’s challenging economy, employees are often finding themselves searching for a better paying job. A recent survey states that 47 percent of top-performers are looking for jobs. That statistic could be earth shattering for any business. "Whenever there’s a shift in talent, it’s the ones you want to keep that leave first."
Little do they know, they may be making more than they think. Employees typically only see their take home pay and not the cost of the additional benefits you as the employer are offering.
As an employer, it is imperative to make sure your staff feels valued. A great way to accomplish this is to show employees everything they are being offered besides what they put in the bank. By presenting your employees with these facts, it will encourage them to stick around. Turnover rates can not only bring morale down, it is also a huge cost to you. With costs like unemployment taxes, job ad placements, background checks, training, and administrative costs during the process, it could cost you thousands of dollars each time an employee quits.
"Keeping the plates spinning," is an idiom many small businesses use to describe the way they manage their human resource responsibilities. Some outsource HR functions to various companies while some tasks are handled by an in-house team member who has many other job duties
There's no need to juggle between outsourcing tasks to multiple companies and attempting to have them work together on your behalf. Professional employee organizations, or PEOs, can help minimize the stress, time and costly resources you spend administering your HR functions by managing:
Next to salary, employee benefits are a key asset to attract and retain talented workers. While most companies offer standard health, 401(k) and other supplemental benefits, there are some non-traditional benefits that can set you apart from the competition and help you sign the best and brightest to your staff.