|
A common
theme I am hearing at the Roundtable is loss of good employees or the need
to attract new employees. We all know the result – you and your staff pick
up the slack and prioritize doing the most critical tasks while hoping to
catch up later. Unfortunately, every department has similar issues. In
rapidly growing companies, the need is acute. So, how do you keep good
employees and attract new talent?
We all know the cost of employee replacement is huge. Costs include: the
time gap the slot is empty, the time gap required to train a new employee,
recruitment costs, higher new hire starting salaries, etc. David Payne
shares in this newsletter about two popular helpful suggestions: flex time
and telecommuting. Particularly in Atlanta, I strongly recommend their
consideration. I use them in my business.
The bottom line is, “How can we be employers of choice, without breaking the
bank?”
One major trend is reviewing the employee benefit package. No, not spending
more money unless your company is under what is average for your industry.
Here are some new ideas that are gaining marketplace adoption.
The math is
simple. Except for key executives, the company pays nothing. HR support is
minimal. Pay-Cards can actually create an employee salary increase
(eliminating an average of 7% in check cashing fees) while not changing what
the company pays out! Some coverage’s can be paid with pre-tax dollars
resulting in lower FICA payments for the company while the employee saves in
FICA and taxes. The company may be offering benefits that their competitors
are not offering, resulting in an Employer of Choice status.
The employees can accept or reject whatever they believe is appropriate, or
not, for their family. You are helping employees move from an entitlement
mindset to a personal decision-maker mindset. Best of all, while they know
the dollar is tight, you have thought of the employee and are doing what you
can. Even if no employee takes you up on the offers (often 50% or more do),
everyone wins.
Will these initiatives solve the problem? No. Salary reviews, health care
benchmarking, performance reviews tied to performance pay, or one-time
financial rewards or incentives, etc., will always be recommended. In
addition, cyclical high demand and wage inflation will still drive turnover
but adding risk-free and cost-free benefits will help, especially as the
marketplace acceptance grows and they become standard benefit offerings of
the future.
If you wish to know more, please give me a call. These are solutions we
provide for our own clients. Why? Because they lead to less turnover and
happier employees, which leads to higher productivity and higher company
profits.
Jim Villwock
Jim.Villwock@IEMcorp.com.
Interested
in making more money?
Give us a call. There is no charge for asking!
|
