Hiring and Compensating for Success (Part Three of a Three-Part Series) - Benefits

Mike Farley of EquipOne walks us through a few of the key methods of retaining employees beyond conventional wage and bonus structure.

To conclude our three-party series, today we look at ways to retain employees beyond conventional wage and bonus structure.

Health care program - The most fearsome thing to the American worker today is not losing his job, but rather losing health care for his (or her) family. Subsequent to that is the cost and coverage maze that employers deal with in trying to provide adequate coverage for small groups. Many employers do not spend enough time on this important part of compensation, and as a result, lose good employees. Do your research and then consult with a respected insurance broker in your area to help you make the best decision for your business.

Retirement funds - There is nothing quite as boring for employees to discuss as a retirement funds program. This being said, if managed correctly, it is a huge retainment tool and a pretty nifty way to create a more favorable tax position for you and the company. Check into this with your tax professional and begin to help your employees create a more sound financial base over the long term. The reception this gets from your employees might surprise you.

Vacation and sick days policy - Vacation and sick time is the area that most rental operators grumble the most about when discussing an overall benefits program. This is due to the fact that vacation and sick time is the most mismanaged part of the benefit program in most small and midsized companies. Be ready to start over in order to analyze what makes sense from both an economic and emotional standpoint. Points to consider are:

  • Start date for vacation calculation?
  • Is vacation earned in real time or arrears?
  • Ability to "sell back" vacation days?
  • What is the minimum hours of vacation and sick hours which can be used?

Even distribution of programs - When you have completed all of your research, consulted professionals and implemented the plan, make sure it is fair for all. Also, be sure to save the program in a booklet that all can read to become comfortable about their position, stature and worth within the company.

Hopefully, this three-week conversation brought some ideas to you about your most important business asset: the men and women who are the face and backbone of your business. Treat these assets with the respect and mentorship they crave and your business will take on a growth and profitability which will astonish you.