Programs that Will Make Your Employees Thankful
Contact Sarah Krueger: 248.267.3700
Troy, MI—November 19,2007—Americans gather together this week to consider the many things for which they are thankful. As we take stock, it’s a good time of year to assess your company policies and procedures to make certain you are offering programs that will make employees grateful to be working for you, according to the Michigan Association of CPAs. A 2006 survey by the Society for Human Resource Management found more than three-quarters of American workers were looking for new jobs. In this competitive hiring environment, it’s a good idea to reward your talented staff members for their dedication.
COMPENSATION COMES FIRST
Not surprisingly, attractive compensation is a very important element in employee job satisfaction. That’s why it’s critical to know the current market rate for various positions and to make sure you’re paying your employees is competitive.
THE BEST BENEFITS
Workers have also come to expect competitive health care and retirement benefits. You should review your benefit package annually to make certain you are providing the best available benefits for your employees that you can afford.
CONSIDER TURNOVER COSTS
While generous salaries and benefits may seem expensive, CPAs advise that the cost to replace staff can be even higher, beginning with the costs to productivity when you hire a bad employee. Expenses also include job advertising and recruiters’ fees, training, accrued salary paid to a former staff member and the cost of the time spent on interviewing and paperwork. You’ll also have to factor in the cost of opportunities lost and projects left unfinished while a position is vacant, and perhaps overtime expenses when other employees pick up the slack. In the end, it’s likely less expensive to raise salaries or improve benefits than to cope with constant turnover.
CAREER ADVANCEMENT IS KEY
If you’re already offering attractive salaries and benefits, how can you differentiate yourself in the hiring marketplace? Ambitious professionals often seek out the strongest chances to advance their careers. As a result, businesses that have clear career tracks or excellent training and education opportunities will be at an advantage. Many companies offer workers some form of tuition assistance. Similar perks that involve no cash outlays include formalized on-the-job training and opportunities to take on greater responsibility. Employees will be less likely to quit if they’re convinced that working for you is the key to a meaningful career.
KEEPING WELL
Wellness programs are another increasingly popular benefit that will help in your efforts to instill loyalty. They include smoking cessation workshops, weight loss and stress reduction programs, and gym memberships or discounts. While these programs may seem costly to institute, they reduce turnover costs and health care insurance bills.
OVERLOOKED OPTIONS
There are many other benefits that companies can provide that will help retain staff. For example, onsite or emergency child care options can be a very appealing benefit to young parents. Discounts on company products or services are a relatively inexpensive benefit that employees will appreciate. Parking privileges or transit subsidies that make commuting cheaper or more convenient for staff is another perk. Depending on your budget, providing free coffee or lunches will also boost morale.
Small businesses turn to CPAs as their most trusted advisers. Your CPA can help you evaluate the costs and benefits of various employee compensation and benefits program, or offer advice on tackling many other challenges affecting your company.
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Produced in cooperation with the AICPA
©2007 The American Institute of Certified Public Accountants
Money Management - November 2007
