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Are You Recruiting, Rewarding, or Retaining Your Employees?

Interested to review your benefits or provide them for employees?
Contact Isabel Kane at 813-289-3632 or ikane@westshorefinancial.com to schedule a complimentary meeting.

 

There are three questions to ask yourself when implementing or adjusting the employee benefits in your business…

  1. Am I looking to recruit talent? 
  2. Am I looking to reward my employees? 
  3. Am I looking to retain the important ones that could impact my income?

 A summary of the three options can be seen below in the table provided.

Practice owners rely on their staff to run a productive business. While running a productive business they care deeply about those who work for them and, in most instances, implement benefits to help improve their quality of life. 

There are benefits such as health insurance, 401k, dental, vision, life, and disability insurance. Some benefits can be provided without a cost to the owner and others require the owner to financially participate. 

Here are a few questions to ask yourself when thinking about what benefits would work best for you and your employees.

  • What exactly is the purpose of this benefit? 
    Example: Practice owners commonly believe a 401k is used to retain employees. This could be true to keep someone from leaving to another company without a plan. But if your competitor offers the same benefit it’s not going to retain them. The 401k can attract new talent from other companies that have plans similar to yours since it can allow you to compete for them in other ways.
  • Do my employees want the benefit and is it worth spending the money?  
    Example: Many owners want to provide health insurance but never understand how this benefits the owner and the employees. You’re the one taking all the risk and with the desire to one day exit the business but keep your lifestyle. The premiums for group health insurance can vary based on the average age of your group and most owners will cover 80% or more of the cost. This could mean the difference between you saving for the future or having to work longer.
  • Which of my employees is asking for these benefits? 
    Depending on who is asking for the benefit (and the reason why they are asking for it) could make the benefit selection process easier so you can provide the employee with exactly what they want. A common example is how an important employee asks for a 401k with expectations to begin saving for retirement. There are often alternative options that can serve the same purpose and provide additional benefits to you and them.

Keep in mind, all these benefits are important to consider when running a business but a strong culture with principles and communication will have the greatest impact. 

The below table will give you a better understanding on how these benefits are meant to be used in a business.

Recruit

Reward

Retain

What to consider:

Most employers start here. The benefits offered can be employer paid and/or employee paid. 

These benefits must be offered to everyone and can be expensive.

The purpose is to attract quality people towards your business but this will not ultimately keep them there long term. 

What to consider:

Sometimes the owner will not want to provide attraction benefits because the cost is expensive. 

Maybe the business owner is providing the benefits but they want to provide additional perks. 

These benefits are considered to let someone know they are doing a job well done. They might become an ongoing expectation. 

What to consider:

There will be employees inside your business that can impact your time or income when they leave. 

These benefits can be offered to a select group and the owner can recover the cost over time. 

A true retention plan is meant to solve an emotional need, be substantial in value, and the benefit is completely deferred. 

What classifies:

  • Health Insurance
  • Retirement Accounts (401k)
  • Group Life and Disability
  • Dental and Vision
  • Financial Wellness Programs

What classifies:

  • Cash Bonuses
  • Office Perks
  • An Experience
  • Life size cut out of them

What classifies:

  • Deferred Compensation
  • Partial Ownership
  • Phantom Stock
  • SERP (Supplemental Executive Retirement Plan)

What to keep in mind:

  • All employees must be offered the benefits.
  • Health insurance requires an employer to supplement the cost.
  • 401(k) plans might have a required contribution or match.
  • Group life, disability, dental, and vision can be provided to employees without any cost to the employer.

What to keep in mind:

  • Cash bonuses can become an expense on cash flow for the business.
  • The bonus should be tied to something an employee can influence or control.
  • They should be offered on a shorter duration (monthly or quarterly compared to annually).

What to keep in mind:

  • The benefit provided can be limited to specific employees. 
  • Deferred compensation plans can help the owner recover money in the event the employee leaves early. 
  • This can be used to purchase partial ownership into your business in the future.

 

This article was written by Tom Seeko with Florida Veterinary Advisors

Interested to review your benefits or provide them for employees?
Contact Isabel Kane at 813-289-3632 or ikane@westshorefinancial.com to schedule a complimentary meeting.

 

Tom Seeko and CJ Burnett are Registered Representatives and Financial Advisors of Park Avenue Securities LLC (PAS). 4200 West Cypress Street #700, Tampa, FL 33607. Security products/services and advisory services offered through PAS, a registered broker-dealer and investment advisor. Tom Seeko and CJ Burnett are a Financial Representatives of The Guardian Life Insurance Company of America, New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. Florida Veterinary Advisors is not an affiliate or subsidiary of PAS or Guardian. PAS is a member FINRA, SIPC.