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In recent years, some employers began offering exotic perks to woo certain employees. Unfortunately, those same employees sometimes jumped ship if another company promised benefits with more pizzazz.
Get more bang from your benefit buck by keeping "designer" perks to a minimum and investing the bulk of your money in a benefit plan that has broad appeal. Even programs like flex time and paid time off to do volunteer work can be a waste of time and money if they aren't fully utilized.
To pinpoint the best benefits for your workforce, you'll have to do some homework. Here are some clues to solve the puzzle:
Commission a survey on your needs. You might discover there's a high proportion of staff members who share interests, for example, single parents, avid golfers or community volunteers. Initially, a large percentage of your staff might take advantage of a particular benefit, but remember that needs can change abruptly. That's why it's important to survey your staff before and after you launch a program. Don't forget to ask how benefit programs affect production and work assignments.
Ask your trade or industry group for studies. Associations will likely have access to studies and reports showing what benefits work best in companies like yours.
Look for a perk that sets you apart. For example, a candy bar at each employee's desk on the first of every month or a coupon for a video rental every Friday.
Review and update your benefit package. Consider appointing an employee committee to analyze the data, report on the results and recommend improvements.
The bottom line:
A broad, detailed approach to your surveys will provide the information you need to make cost-effective adjustments to benefit plans.
Keep your wages competitive and devote energy toward developing benefits that are both useful and unique. Don't waste time on expensive perks that don't appeal to your staff. For instance, a highly rated benefit like a day care center only makes sense if a substantial number of your employees have young children.
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Hit a Home Run in Employee Retention If most of your staff members are young, consider a benefit that pays the mortgage points on the purchase of a first home. You'll be a hero.
Plus, homeowners are less likely to quit their jobs than those who rent. Yet it can be downright difficult, if not impossible, to get a mortgage — particularly for employees who work by the hour, are entry level, or new to the workforce.
If your employees can't afford to become owners, consider providing low-interest mortgages or loans for downpayments.
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Here are some basic guidelines for a company-sponsored mortgage program: |
Collaborate with a local bank or mortgage company. Loans should be capped at a certain amount based on housing values in the area.
Provide loans to full-timers with a year of tenure. These employees are the most likely to remain with the company since they've already shown their commitment.
Make payments simple. Let your employees pay back the loans over time, drawing from their regular paychecks at an agreed-upon rate. Or you can make the loans forgivable after a period, say five years. If you can afford it, the latter approach is preferred as it offers another incentive for the staff member to remain with the company.
Keep the interest low. Set the interest rate well below the market rate, or even make the loans interest-free. If your employees can get the same deal at a bank, you defeat the purpose of the loan program.
Learn the tax implications. Keep in mind that forgiving a debt or making a loan at below-market interest rates can result in taxable income to the employee.
By investing in home ownership, you save big money down the road by reducing turnover. |
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