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13 Replies Last post: Jul 20, 2008 3:12 PM by TRINAMR7

Using A Benefit Plan to Retain Employees

Aug 11, 2007 1:36 PM

Click to view NetworkGuru's profile Founders NetworkGuru 25 posts since
Aug 6, 2007
I am about to hire my first employee. From experience, I found that the jobs I stayed at longest had decent salaries, good bosses, and an excellent benefits package. Before I start interviewing candidates, I would like to finalize my plans for budgeting, employee manuals, and what I will tell my potential employee what they will receive for benefit compensation.

What would be considered a decent benefit package these days for a small business? For example, pay 50% of the employees health, dental, vision, 3 weeks time off, etc. I would like to use these benefits to attract good people that might otherwise look at the larger corporation for work.
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Click to view Techie's profile Founders Techie 46 posts since
Jul 29, 2007
1. Re: Using A Benefit Plan to Retain Employees Aug 15, 2007 8:13 PM

Congratulations on hiring your first employee! Many small businesses with a few employees do not even offer health benefits to their employees so I think your package is very appealing. Also, offering 3 weeks of vacation during their first year is inline with a lot of corporate jobs and may even be more attractive, as some firms only give 2 weeks of vacation per year plus the standard 10 day holiday.
Click to view mentorachild's profile Founders mentorachild 1 posts since
Aug 20, 2007
2. Re: Using A Benefit Plan to Retain Employees Sep 4, 2007 10:09 AM
Network Guru-- That sounds pretty good! While of course the ideal situation for employees is fully paid benefits, I definately think 50% paid, including dental and optical is at or slightly above the average. I agree with Techie that 3 weeks paid vacation is generous and certainly enticing. If this is what you've decided is feasible within your budget and business plan, it should be positive for you and do what you're hoping in terms of interviewing quality employees interested in staying long term. I know some companies may also offer employees say $2,500 a year to apply wherever they like: health insurance, child care, tuition, etc. Also, just food for thought, down the line you may want to consider employee volunteer programs designed for businesses. We have partnerships with several companies where employees volunteer one hour a week. Employees--even those who don't volunteer--feel good about working for a company that cares about the community. The programs improve employee retention and enthusiasm. You may want to see what appeals to your prospective employees (in terms of non-monetary benefits) and see if it's feasible for you to offer. Thanks & good luck!
Click to view DrMatt's profile Professional DrMatt 3 posts since
Oct 15, 2007
3. Re: Using A Benefit Plan to Retain Employees Oct 15, 2007 4:49 PM
I can comment on the Health, Dental and Vision part of your question.

Also, although you do not state that, I will assume that, being a small
business, you are concerned about where the money goes, so you
do want a great benefits package for your employees and at the
same time, you want the most value for your money. Also, managing
benefits is probably something you don't want to spend much time on.

Given the above assumptions, I feel the best plans to recommend
are a HSA-compatible health insurance with a modest to high
deductible. You can find plenty of selection at http://MyeHealthInsurance.info
for example. As far as dental, vision, and other, more luxury type
plans, the best value for the money is http://GroupBenefitsMadeSimple.com
This website will also talk about a medical plan that would offer you
first dollar coverage. You can combine that with your HSA-compatible
health insurance before the deductible.

Best for your business!
Click to view erinoir's profile Professional erinoir 17 posts since
Oct 24, 2007
4. Re: Using A Benefit Plan to Retain Employees Oct 24, 2007 11:39 AM
Hello there! You are correct, benefits make a big difference. My business is health and dental plans, so that is what I am most knowledgable about - check out some of the other answers to your question for ideas about vacation time.

If you cannot incur the complete cost of health and dental plans, you could, for instance, help them for with the application fee and the first month. There are many benefit plans out there, just make sure you do your research before signing any deals.

Good luck! I am sure your employees will appreciate your committment to them!
Click to view Acuity in ATL's profile Start-up Acuity in ATL 2 posts since
Nov 20, 2007
5. Re: Using A Benefit Plan to Retain Employees Nov 20, 2007 11:35 AM
in response to: DrMatt
Are you selling leads to ehealth?
Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
6. Re: Using A Benefit Plan to Retain Employees Nov 20, 2007 1:06 PM
From an accounting point of view, how long have you been in business??
Is the business in the black?? Do you have an Accountant??
Have you prepared a CASH BUDGET showing the cost of your new employee??, payroll taxes??
and the cost of the benefit compensation??
Good luck, Happy Thanksgiving, LUCKIEST.
Click to view Acuity in ATL's profile Start-up Acuity in ATL 2 posts since
Nov 20, 2007
7. Re: Using A Benefit Plan to Retain Employees Jan 15, 2008 12:45 PM
in response to: travelmom
Travelmom,

Is this insurance or a discount card. At $53 it sounds more like a discount health card which in most cases is not insurance.

Post a weblink and at least someone who is interested can look at the coverage to see if it is an option.
Click to view ioshpam's profile Authority ioshpam 12 posts since
Apr 10, 2008
8. Re: Using A Benefit Plan to Retain Employees Apr 10, 2008 9:23 PM
Hello i own an insurance office in Pennsylvania we specialize in insurance benefits for employees, if it is convinient to you please contact me and we can come to you do 15 minutes 0% pressure to you presentation and than you can deside if you want it. I represent Allstate

email me at ioshpam1984@gmail.com
Click to view pr0fuse's profile Professional pr0fuse 6 posts since
May 11, 2008
9. Re: Using A Benefit Plan to Retain Employees May 11, 2008 9:43 PM
The cheapest and perhaps most used benefit plan is a legal plan. It allows employees to focus on work instead of problems and it doesn't cost the employer anything. http://www.prepaidlegalplans.ws
Click to view TLRInsnAcc's profile Mogul TLRInsnAcc 15 posts since
Mar 15, 2008
10. Re: Using A Benefit Plan to Retain Employees May 12, 2008 3:59 AM
in response to: pr0fuse

If you can afford a plan that is one way to sweeten the pot of employees!
We been providing benefit solutions for about 26 years; if you like you can
contact us for more information or stop by our web site! It in the my ProFile!

I hope the best for you!

TLR

Click to view calbear81's profile Professional calbear81 3 posts since
Jun 24, 2008
11. Re: Using A Benefit Plan to Retain Employees Jun 24, 2008 7:25 AM
Health and dental benefits will definitely help retain employees. Another great way is using the "golden cuffs" concept using section 162 restricted executive bonus plans. More details at securefloridian.com
Click to view snipperred's profile Mogul snipperred 147 posts since
Jun 11, 2008
12. Re: Using A Benefit Plan to Retain Employees Jul 13, 2008 12:09 AM
I agree with the high-deductable HSA. I would combine that with some form of flex spending account. When it comes to a small business just hiring, I would think about how much you are obligating yourself to. I recommend holding the wage slightly above the fair market value for a quality employee and then building anything else into a performance based incentive. Plan to pay that and be clear on what is going to satisfy your expectations. I also highly suggest tying in some sort of productivity measure they directly contribute to in the conduct of their role.

I've got more on vac/sic along same line if you need. Just got a call...
Click to view TRINAMR7's profile Start-up TRINAMR7 1 posts since
Jul 20, 2008
13. Re: Using A Benefit Plan to Retain Employees Jul 20, 2008 3:12 PM
Hello,

Have you heard of AFLAC? You porbably seen our crazy duck commercials. Aflac core values are just what you are looking for. We help businesses like yours expand your benefits program without adding to the cost, achieve possible FICA savings and reductions in workers' compensation, help improve employee morale and retention, Help contribute to employees' health through various wellness programs and reduce administrative involvement.

If you are interested in learn more give me a call at:

Petrina Jackson
847-477-1735
petrina_jackson@us.aflac.com

Talk to you soon