Reward—and retain—employees by offering a better benefits package
Yep, the labor market is tight. Finding good employees is tough. And once you find them, you want to do everything you can to keep them. Competitive pay and a strong company culture are key factors in employee retention, but eventually you will also want to look at the benefit package that you are offering to employees. Benefits can be a key factor in keeping an employee with you for the long term.
Let’s run through some of the options out there for building a compelling benefit package for your team.
Paid time-off
Offering paid time-off to your employees shows that you value their work-life balance. Plus, when your employees aren't burning the midnight oil every night, they come back refreshed and ready to crush it. They're happier, healthier, and more motivated. Offering paid time-off (PTO) is a gesture that shows your employees that you care about them, both during and outside of work.
For salaried employees, it’s often easiest to grant PTO as a chunk at the beginning of each year. For part-time employees, PTO is often accrued based on the number of hours worked. The average employee PTO is about 11 days per year. If you wanted to start with 10 PTO days a year (2 weeks equivalent), this would come out to 1 hour PTO for every 25 hours worked. This formula will work for both salaried and part-time employees.
Paid holidays
Holidays are moments of shared joy and celebration. Paid holidays aren't just about giving your employees a break; they're about showing that you value their well-being. It's a way of saying, "Hey, we know you work hard, and you deserve this." This gesture of appreciation builds loyalty and a sense of belonging. The most common paid holidays in the US are Thanksgiving, Christmas, Independence Day, New Year's Day, Memorial Day and Labor Day.
Retirement savings
A retirement savings plan, such as the SIMPLE IRA, offers a tax-deferred for both you and your employees to contribute towards a more secure future. You can consider the possibility of employee matching, which serves as a testament to your commitment to their long-term financial well-being. Alternatively, employers can make direct contributions to the plan on an employee's behalf.
Home office reimbursement
In the age of flexibility, the home office has become a cornerstone of productivity. Offering an annual allowance for setting up a home office shows your commitment to enabling efficient work environments. Employees can invest in their comfort and efficiency, with a clear reimbursement process in place to make the most of this benefit.
Health insurance
Our partner, Gusto, extends a helping hand as a health insurance broker. Their comprehensive offerings open a realm of possibilities for your employees' well-being. By connecting with Gusto, you can confidently choose the right health insurance option. With flexibility in mind, you have the liberty to decide whether you'd like to cover 50%, 70%, or even 100% of the health insurance premium for your workforce.
If you want to look into this further, we recommend that you reach out to Gusto. They're equipped with the expertise to guide you through the intricacies of health insurance choices, empowering you to make informed decisions that resonate with both your company's philosophy and your employees' needs.
QSEHRA
If you aren’t ready to jump for employer-sponsored health insurance, you might want to look at a simpler option: the QSEHRA. QSEHRA stands for Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). This is innovative option that empowers your employees to choose their own health insurance plans or utilize funds for medical expenses. The beauty lies in its simplicity: you provide a fixed monthly amount that your employees can use to navigate their health needs. The reimbursements offered through QSEHRA are tax-free.
While setting up a QSEHRA is fairly simple, we do recommend that you use a proven vendor to help make sure your plan is set up according to IRS regulations. We suggest using Take Command Health.