Retain Employees By Taking Care of Them
Employees are a valuable asset to any company and should not be taken lightly. Sometimes we think of employees as expendable assets, but they really aren’t. It costs time and money to train people. Every time an employee leaves, you’ve got to spend it again. If you have a high turnover rate, that’s a signal that you aren’t a good employer to work for. You’ll find it harder to hire employees and those who do come to work for you won’t be the best workers; the good ones get scooped up by other companies. If you want to retain employees, you have to create a good environment to work in.
That doesn’t have to be expensive. We recommend looking for ways to build a good work environment that can also count as tax deductions for your business. Here are 3 options to consider.
How To Retain Employees
1. Offer Insurance
According to research done by Aflac, one of the most common reasons employees stay with a company (76%) is because they feel their employers take care of them. Offering some insurance – particularly health insurance – is a great way to make employees feel good about the company. With health care costs rising, worrying about paying for unexpected medical bills is a serious stress. The more stressed a person is, the more likely they are to leave their job. Even for very small companies, there are supplemental insurance policies that you can offer to your workers to give them extra piece of mind.
2. Performance-Based Bonuses
One thing that employers are struggling to get used to is the way the current generation of the workforce motivates itself. Millennials are most highly motivated by recognition and feeling like their work is valued. While there are many ways to give this feeling that don’t cost anything, going the extra mile can add much more motivation. Performance-based bonuses can count as a tax deductible compensation that rewards workers for success. This can be something as simple as giving a percent of commission for sales, or a small reward for referring a new customer. These small things can act as regular and irregular rewards that motivate people and improve your ability to retain employees.
3. Remote Work Compensation
Remote work isn’t for everyone, but sometimes people work really well from home. There are definite benefits to doing so. For employers, it can reduce the overhead and the size of the office space you need. For employees, it saves a bundle on gas money and driving time. It does require your own internet, though. While it’s uncommon to find a home in the US that doesn’t have the internet these days, you can give some extra tax deductible incentive by offering to compensate them for the cost of their internet. This could be full, or in part, but the important bit is that it’s extra compensation on top of their hourly wage. This can be great for employee retention because the internet is something that people use for more than just work, and having some or all of that covered by workplace compensation reduces their living expenses.
Employee Retention is About Meeting Needs
Contrary to what some employers like to think, nobody goes to work for the privilege of working. We work because we have to earn money to live. If you want to retain employees, you need to keep that in mind. If your employees are stressed, there’s a 43% likelihood that they’ll leave and all that time and money spent training them is gone to waste. Offering benefits beyond just a paycheck is a good way to make employees feel like work takes care of them. This reduces stress and by extension that chance that they’ll quit.
Let Us Help
Let Us HelpWe often hear the phrase “in this economy,” but can you ever think of a time when it wasn’t “this economy?” Offering benefits is always going to cut into profits, but it’s the best way to retain employees. With smart benefit plans that take advantage of tax deductions, you’ll find that these small expenses save a lot more money in the long run. They say you have to spend money to make money; that includes spending it on employees.
If you need help finding the best compensation strategies, why not ask us? We’ll help you find the right strategies that work for your company budget. Make money and take care of your employees at the same time!