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14 Replies Latest reply: Jul 5, 2010 7:51 PM by Benefits4U RSS

Using A Benefit Plan to Retain Employees

NetworkGuru Newbie
Currently Being Moderated
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.
  • Re: Using A Benefit Plan to Retain Employees
    Techie Newbie
    Currently Being Moderated

    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.
  • Re: Using A Benefit Plan to Retain Employees
    mentorachild Newbie
    Currently Being Moderated
    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!
  • Re: Using A Benefit Plan to Retain Employees
    DrMatt Newbie
    Currently Being Moderated
    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!
  • Re: Using A Benefit Plan to Retain Employees
    erinoir Newbie
    Currently Being Moderated
    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!
  • Re: Using A Benefit Plan to Retain Employees
    LUCKIEST Master
    Currently Being Moderated
    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.
  • Re: Using A Benefit Plan to Retain Employees
    Acuity in ATL Newbie
    Currently Being Moderated
    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.
  • Re: Using A Benefit Plan to Retain Employees
    ioshpam Newbie
    Currently Being Moderated
    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
  • Re: Using A Benefit Plan to Retain Employees
    pr0fuse Newbie
    Currently Being Moderated
    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
  • Re: Using A Benefit Plan to Retain Employees
    calbear81 Newbie
    Currently Being Moderated
    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
  • Re: Using A Benefit Plan to Retain Employees
    snipperred Apprentice
    Currently Being Moderated
    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...
  • Re: Using A Benefit Plan to Retain Employees
    nonlinear Newbie
    Currently Being Moderated
    I congratulate you on moiving your business to the next level. After reading several of the posts on advising what to do, in my opinion it is not what benefits you are considering giving that are the issue, it's what you project your business can afford. Depending on your state, there are rules you need to know about with regard to benefits. If you find that out first, and then talk to a benefits specialist, between the two of you I think you can work out a plan. The reason I say talk to your state first is, some benefits specialist don't even know all the details even in their own states. I know this because I own an issurance agency and see this all the time.

    It can be a very educational process and one worth learning. I have seen many a business go down over benefits because they did not properly plan out this one category of expense. Benefits can be very costly and damaging to the bottom line if you don't know what it is you are doing.

    Sorry to be so blunt but I have seen the devastation of the benefit game. Just do your homework completely! Good Luck!!
  • Re: Using A Benefit Plan to Retain Employees
    Benefits4U Newbie
    Currently Being Moderated
    With the rising cost of health care and insurance, a discount benefits program to be extremely beneficial to small business owners who find the cost of providing insurance for their staff to be a challenge.

    My company is the nation's leading Discount Medical Plan Organization. We are members of the Consumer Health Alliance and National Association of Dental Plans. We've been featured in U.S. News and World Report and on the "American Medical Review" program hosted by Morley Safer of "60 Minutes" which showed us as an innovator in the field of health benefits.

    Our benefits programs includes physicians, ancillary services, hospital advocacy, dental, vision, prescription drugs and chiropractic care. Unlike many insurance programs we offer a program with no waiting period, no limits on the number of visits or services, no age limits and no annual plan limitations.

    It's worth looking to and utilizing to retain your employees. Even those who are PT can use our benefits.

    If you want more information go to: www.affordablegroupbenefits.net or feel free to contact me if you have any questions. Good luck on everything :)

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