You want to retain the best talent at your business, but you might not be in a position to offer your employees a raise at this time. However, there are other options besides a raise that will show how much you value them. Here are some benefits you can offer instead of a raise to keep employee satisfaction high.
Remote Work Flexibility
Balancing work with personal life can be a struggle, especially for people with children or other caretaking responsibilities. If the pandemic has taught us anything, it is the benefits of remote work to both employees and companies. This is particularly true for people with a significant commute; instead of spending hours in the car every day, remote workers can maximize that time in other ways. When you give your employees more control over where and when they get their work done, they are better able to balance their lives. This contributes to happier employees and higher retention.
Retirement Plan Contributions
It is never too early to start planning for retirement. The ticking of the clocks and changing of the seasons are constant reminders that time is passing quickly by, and without a plan, it can start to get a bit scary. To maintain a comfortable lifestyle, experts recommend that people maintain around 80% of their pre-retirement income. Providing your employees with a contribution plan will help them to meet this goal. People understand how valuable retirement plans are, which makes this a powerful benefit to offer in lieu of a raise. Retirement plans offer tax benefits for you and your employees. For example, employee contributions are not taxed, and you can claim tax credits for small businesses. Options for small business owners are defined benefit plans such as a pension, IRA’s, or defined contribution plans like the 401(k). Just remember, 401(k) plans can become complicated to administer if you don’t follow IRS rules.
Paid Time Off
Everyone needs to take time off, but not many people can afford to if they don’t have some kind of Paid Time Off (PTO) plan at work. PTO is highly ranked when it comes to benefits that lead to employee retention. While PTO will provide happier, more productive employees, the cost is relatively low if you plan this benefit strategically. Many companies offer some form of PTO for holidays, vacation, sickness, and parental leave.
Company benefits are highly valued and can easily take the place of a raise. Frequent employee turnover costs you money with hiring, training, and loss of production. Keep your employees happy by offering popular benefits.
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