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Using Benefit Packages to Recruit and Retain Top Talent

| May 14, 2015
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The competition for top talent is fierce in today's business climate. In-demand individuals with talent and skills in social-media management, digital marketing, programming, and IT are few and far between. Recruiting these individuals to work with your company is difficult enough; keeping them on your payroll is even harder. Unless you're the top company in your industry, there is undoubtedly a competitor who can afford to sway talented employees to leave your company with the promise of a higher paycheck or more attractive work environment.

In the battle to level the playing field, the greatest weapon in your arsenal just might be your benefits packages. With a comprehensive benefit package, you can recruit the top talent already employed in your industry, attract graduates from accredited programs with stellar track records, and retain these individuals on your payroll for years to come.

Healthcare and Life Insurance

Healthcare is on everyone's mind right now. As companies look to save money by cutting coverage options and the Affordable Care Act pressures them to offer more, individuals with top talent in their field are increasingly concerned about healthcare over salaried compensation. Individual health plans that offer low (or no) deductibles and the flexibility to see the physicians they choose will help attract employees to your company. Expanded coverage for family members will further lower household costs for your employees without the company having to raise salaries to help offset those costs.

Additionally, life insurance plans provide peace of mind to employees with children and spouses at home that would be left high and dry without their income in the event of death. Life insurance plans acquired privately can be expensive, so the addition of these plans to your benefit package provides a major boost in your effort to recruit and retain.

Employee Stock Options

If you want to put forward a company image that represents genuine concern for the welfare of its employees, stock options are a great place to start. Employee stock options generally consist of an initial stock offering made to individuals when they join the company, with the option of increasing their stake later on at reduced or fair rates. Stock options allow your employees to gain ownership stake in the business and provide an incentive to work hard for the benefit of the company. Growth and profit for the business means extra income for the individual as well in the long run.

Additional Compensation

Even the most talented employees need time off to unwind and recoup. Offering a robust vacation package to your employees helps them realize that the company sees them as human beings and not machines performing standard tasks. A good vacation package should include a set number of paid vacation days, paid sick days, and even a handful of flexible paid days off for your employees to use at their discretion.

In addition to vacation packages, you can offer bonuses to incentivize your employees. A comprehensive bonus structure doesn't work in every case, so great care should be taken to create a plan that compensates employees fairly and accurately. For example, blanket compensation plans that rely upon company-wide goals being met can create a sense of indifference in most employees. Even if they put in 100% every day, they may miss out on that bonus if others do not put in equal effort and the company fails to meet its goals.

Retirement Options

Last but not least, give your employees a reason to stick with your company long term. Traditional pension plans are a thing of the past, but there are great options available. A 401(k) is perhaps the most popular option in many companies today. This type of program allows your employees to contribute to their own retirement, and with a contribution matching policy, you send a message that you will support those people now and in the future. Similar programs include 403(b) plans for public education entities and nonprofits, 457 plans for state and municipal employees, and Thrift Savings Plans for federal agencies.

The number of options in your benefit package is dependent upon your company's ability to support those programs. The more you offer to employees, the more attractive your company looks to talented prospects. Assess your company's ability to pay for these packages and put together a comprehensive plan that is the most attractive to talented individuals in your industry. Contact your strategic planner to get your company on the right track for the future.

 

These are the views of Social Advisors, and not necessarily those of the named representative, Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

 

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Richard L Farrar is a registered representative of Lincoln Financial Advisors Corp. Securities offered through Lincoln Financial Advisors Corp., a broker/dealer (Member SICP). Investment advisory services offered through Sagemark Consulting, a division of Lincoln Financial Advisors, a registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. CRN-1189698-050415

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