When you own a small business, every employee is integral to your success, so you want to hire the best. You want people who are reliable, capable, and committed to your company.
How do you attract and retain the right talent? Competitive pay certainly helps, as does a positive company culture, but you also need to offer a benefits package that not only attracts great people but inspires them to work hard and stay with you for the long haul.
Here’s what matters when it comes to building your team:
- Skills and experience. You want to attract people who have the capability to perform well and can get up to speed quickly.
- Best efforts. Your team members should be motivated to work to their maximum potential and in the best interests of the company.
- Low turnover. Turnover is costly. You need employees who will stay with you so that you don’t have gaps in your team and additional training costs for new employees.
- Protecting your cash flow. While you want to pay competitively, you don’t want to hurt your short-term cash flow by paying salaries that are too aggressive.
How can you build the team that you want so that you can best meet your goals? How can you meet your employees’ needs and your own at the same time?
You need to build an effective employee benefits plan.
Salary is certainly important. You need to offer a competitive salary, but to protect your short-term cash flow, you can offer other benefits to compensate for salary.
- Give your employees a stake in the company, such as profit sharing, company performance based bonuses, or stock options.
- Long-term benefits can include retirement plans and deferred compensation.
- Offer health insurance. The Affordable Care Act (ACA) gives you new options. Talk to your advisors to determine the best option and to decide how much to contribute.
- Dental, vision, disability, and life insurance are all additional options.
- Offer vacation time, paid holidays, and paid sick days.
- And make sure you are offering all benefits required by law, including workers’ compensation and compliance with the ACA, Family and Medical Leave Act, and others.
A positive company culture is not a defined benefit, but it is an important key to employee retention. People who are happy with you and their work environment are more likely to stay. A positive company culture is a result of your actions:
- Communicate the company’s vision and goals to your employees so they understand the big picture and feel they have a role in achieving the vision.
- Lead with integrity above all else to build trust and to set the best example for your team.
- Allow employees to have a voice—let them be innovative in their roles, and listen to their perspective.
- Reward employees for contributions or positive words or actions. The reward does not have to be financial—it can simply be recognition.
- Have team events—celebrate successes, holidays, etc., to bring your team together.
- Have a culture of open communication. No one should be afraid to voice an opinion, and communication should be a two-way street. If you give feedback to an employee, he or she should be allowed to respond and vice versa. But always keep your communication as positive as possible.
Long-term employees are valuable assets that increase the value of your company. Finding great people and retaining them doesn’t have to break your bank if you offer a competitive benefits package and make your company a great place to work.
For more information on Employee Benefit Plans for your small business, call us at (855) 236-0600.