A recent survey by the National Federation of Independent Businesses (NFIB) found that many companies are struggling to attract and retain qualified workers. While some businesses have countered this shortage of workers by raising hourly rates to record levels according to the NFIB, other businesses don’t have the financial flexibility to do this.
If you’re a business that doesn’t have the financial resources to raise pay, consider differentiating yourself by adding unique employee benefits. After all, the cost of losing a potential or existing employee to a competitor may outstrip the expense of an easy-to-implement employee perk.
Here are several unique benefits to consider offering current and prospective employees:
Flexible schedules. By creatively managing time, you can maintain workflow and keep employees productive. For example, some firms have offered a 9/80 work schedule. Over the course of two weeks, an employee works eight 9-hour days, one 8-hour day, and gets one day off. Another common option is the 4/10 schedule where each employee works four 10-hour days and takes every Friday off.
On-site health and wellness perks. Some examples include allowing workers to visit a mobile dental clinic or registered nurse during work hours, negotiating a group discount at the local gym and providing employee gym memberships, or making weekly massages and lunch-break yoga classes available.
Family support. On-site childcare for busy parents, rooms for nursing mothers and generous parental leave policies are family benefit options to consider. Some companies have implemented a program of chore help where the business covers the cost of laundry or cleaning services for workers who work long hours. For some businesses, permitting employees to work from home several days a week is another great perk for workers who have families and may need the location flexibility.
Pet-friendly office. Let dog owners bring their furry companion to work on a periodic basis. Besides decreasing stress for the pet owner, dogs often facilitate group bonding. Other pet-friendly options include free training classes or discounted veterinary services. For employees who don’t own pets, pet-friendly funds can be applied toward other perks such as gym memberships or free lunches.
Referral bonuses. If your firm is struggling to attract qualified workers, consider paying existing employees for every person who attends an interview via an employee referral. The existing worker might be offered a lump sum payment or even an allowance for each month the new hire remains on the job.
By being flexible and listening to your employees, you can generate many ideas for unique employee benefits. And the retention that results will benefit both you and your employees.
Whether you are hiring for the first time, filling an open position, or conducting annual performance reviews, finding a salary range that attracts and retains valued employees can be a difficult task. Here are some suggestions to help make the process a bit easier for you and your company:
Know what your business can afford. Like any business expense, you need to know how it will affect your budget and cash flow. Make a twelve-month profitability and cash forecast and then plug in the high end of the annual salary range you are considering to see if it’s something your business can absorb. After all, the greatest employee in the world can’t help you if you don’t have the money to pay them. Don’t forget to account for increases in benefit costs, especially the escalating cost to provide healthcare. Once you establish a budget, you can allocate your spending plan to your payroll.
Understand the laws. In general, the federal government sets the minimum requirements (minimum wage of $7.25 per hour, overtime rules and record keeping requirements). States and localities often add their own set of rules. For example, the state of Illinois, Cook County and the city of Chicago all have different minimum wage requirements. If you are located in Chicago you need to adhere to the highest rate. So research all payroll rules that apply to your location at the beginning of the process. When reviewing the rules, don’t forget that different rules often apply depending on the number of employees in your business.
Review and update job descriptions. Take some time to review key jobs and update them as appropriate. With new positions, note the exact tasks and responsibilities you envision for the role. Then, think about the type of person that will succeed performing these responsibilities. Once you have a clear picture of who you are looking for, you can begin to build a detailed job description and narrow in on a specific salary range.
Establish value ranges and apply them. Value is key when determining the perfect salary amount. Define the range of value for the position and then apply that valuation to the current person’s performance within the defined pay range. Use websites and recruiters to establish the correct range of pay, then apply experience and employee performance to obtain a potential new salary amount. Remember, size of company, location and competitiveness of the job market are all factors to consider.
Factor in company benefits. A strong suite of employee benefits is a powerful tool to couple with a competitive salary. Don’t be afraid to communicate their value to prospective and current employees (they help with retention, too!). According to Glassdoor, health and dental insurance are the most important, but flexibility is close behind – over 80 percent of job seekers take flexible hours, vacation time and work-from-home options into consideration before accepting a position.
Finding the right salary can be tricky, but with some preparation and research, you can find the balance that satisfies the needs of your business and your employees.