Employee benefits are likely one of your biggest expenses as an employer.
Be strategic when you’re deciding what you’ll offer your workers, regardless of your budget or the number of people you employ. Your employee benefits should:
- Be centered on clear goals
- Be financially realistic
- Be as competitive as possible
- Articulate additional perks
- Fit into the total compensation picture
When setting your budget, remember that you have to pay what you can afford to pay, which often means you won’t be competing head-to-head with bigger companies. That’s OK. As a smaller player, you can give employees a few perks that the big companies can’t.
How can you be competitive with benefits?
Offering a defined contribution retirement plan, such as a 401(k), can help you stay competitive. These plans encourage employees to contribute their own money toward retirement every pay period. One way you can stand out from other businesses in your field is with a generous matching program for retirement accounts.
Do your research on every feature and shop your options to get the best rates on these plans. It’s also a good idea to confer with your Morgan & Associates tax professional on what makes the most sense for your company and its employees.
This is where the best strategy comes in: If you can offer more with matching retirement contributions, you may be able to win some tax benefits in the long run.