Job benefits

[Jerrek]

As an employer, I've been thinking of late what kind of benefits I can offer my employees. What kind of benefits do you want? What do you prize very highly? My goal is to make their lives as easy as possible, within reason of course.

Here are some ideas I'm considering (for the future). Keep in mind that I don't have a lot of work experience, so I don't really know what ideas are out there. I'd appreciate some feedback.


My system will definitely be the salad bar idea. I'll assign a certain value to each benefit, and you can pick from a list what you want as long as the total value doesn't exceed what is available to you. Often, instead of just pay increases, I'd offer to increase this number so that you can pick more benefits.

What benefits am I thinking? (Some of these may have a value 0 which means it will be available to all employees free of charge)


- medical, vision, and dental plans -- partial or complete coverage? Should be customizable

- life insurance

- disability insurance, both long-term and short-term

- stock options

- vacation options (special deal with hotels and resorts for company employees)

- paid holidays

- contributions to pension

- pre-tax savings programs to whichever investment plan you choose (i.e. college for your kids)

- employee assistance program

- free lunches every day

- free gym memberships

- company clubs for sports, such as football, hockey, etc.

- adoption reimbursements

- tuition reimbursements

- transportation allowances

- living allowance (help pay mortgage)

- private school allowances for children

- employee referral program

- "Fedex" service... need your laundry picked up from the dry cleaners? Need to pick up a package at the post office? We'll have someone to do it for you and bring it to your office.



Any suggestions?

I would choose ;

- medical, vision, and dental plans -- partial or complete coverage? Should be customizable

- paid holidays

- free lunches every day

- transportation allowances

- living allowance (help pay mortgage)

[wheeliebin]

Originally Posted by Jerrek

<Snip>

As an employee i am not swayed by all these wonderfull benefits. I simply want good pay and a proper rise each year.
Payed holidays.
I want to be listened to and respected by my employers.
I want to be rewarded (not just financially for hard work and good performance)
And i want flexibility and understanding as i am a father first and foremost.


Anyone know of any firms fitting these criteria?

consider the tax implications on each. For example in the UK if you give free lunches as in food its not taxable, if you give free lunches as in vouchers i believe it is taxable.

Provide for peoples futures and offer a pension. Gives the added benefit you get long term commitment from them to if you offer the right sort of pension.

Originally Posted by Jerrek

As an employer, I've been thinking of late what kind of benefits I can offer my employees. What kind of benefits do you want? [...]
Any suggestions?

1) As Gary has pointed out, some benefits may have tax implications either for the business or for the employee.

Keep in mind that I don't have a lot of work experience, so I don't really know what ideas are out there. I'd appreciate some feedback.

2) I'd ensure your business is up and running in a stable and consistent way before you start worrying about adding in extra complications.

I can't remember what you do, but what happens if demand is suddenly reduced? If someone else comes in to compete against you for your customers? Could you afford to maintain the benefits (which you may have contracturally obliged yourself to supply) given a reduced turnover?

I'm not trying to put you off, but these are things that need to be considered. I'd suggest seeing a professional business advisor.

It's great that you're considering these things before you even get started with having a business with employees. However, I have a (very) little experience in this area and I know that employees where I work would always choose higher wages above perks. So whatever you choose to offer, make sure you're not spending money on it that you could be putting in their wage packets instead.

As for paid holidays - that's an odd one. Presumably this is not an employment right in the US or Canada (where are you planning to live once you graduate?). Over here, it's your legal right to get 20 days paid leave a year, although some employers can sort-of get round this if they jump through enough hoops.

Some of these "benefits" seem entirely pointless to be defined as "benefits" in the first place. What's the point in having financial aid for something like transportation and the mortgage defined as a "benefit"? Why don`t you just put that money into the pay packets in the first instance?

[MovedGoalPosts]

I'd have to agree with the majority here, initially go for good salaries as the prime factor. If the salary is good enough then the employee has the choice of beneifts that they can then arrange themselves. After all, if you don't have kids, cheaper schooling offers would have no appeal, and so on.

Maybe make it easier for employees to take up certain things like pensions. In the UK employers except the smallest are now obliged to have stakeholder pension scheme access (the pension itself is run by a private fund, not the employer, as for a small firm that would be financially unreliable) - doesn't mean the employer has to contribute, just has to provide the facility for the employee to make payments.

Bottom line has to be, don't try and run before you can walk. Don't put in place something that your business cannot afford. Perhaps the biggest incentive would be "stock options" in your fledgling business especially for any key staff, to incentivise them that times are hard to start with but they, with you, reap the rewards later as the business becomes successful.

[SMHarman]

Originally Posted by dr wadd

Some of these "benefits" seem entirely pointless to be defined as "benefits" in the first place. What's the point in having financial aid for something like transportation and the mortgage defined as a "benefit"? Why don`t you just put that money into the pay packets in the first instance?

Its a big US thing. With many of these benefits he is proposing the costs are deducted from your gross, not your net salary. By setting up a transport plan, you can say have $2k anually deducted from your gross to pay your season ticket, not from your net which would have been 3333 of your gross as a higher rate tax payer (UK tax rates). Similarly you can do one for medical expenses, cover your deductables, contact lens, glasses, prescription copayments and any not covered surgery (even cosmetic!) and take the cost from your gross.

This sort of benefit is a use or lose. If you don't spend the money in the tax year, the cash goes to the government, so you end up with a mad scrabble in December finding all the receipts you have forgotten to pay in so you can claim the cash before its gone forever.

I like the menu benefits options - I think the term free in a lot of this is a bit of a misnomer, at least in the UK approach, normally you sacrifice some of your cash salary for a benefit, as such there is a cost involved. This cost should be lower than the value you can purchase on the open market. Subsidised or group rate is more appropriate IMHO.

My current employeer is quiet tight on the holiday front. Whilst cash is the principal benefit, I would happily sacrifice some for an extra week off work each year. Pension benefits are important too, not to long a waiting period before you join and a healthy contribution. My current eer puts in 11% for my 3%. Thats an 11% payrise compared to not joining!

[Stuartbe]

How about free childcare ? Thats often missed out of the perks !

[Flubflow]

One important benefit is to have managers/supervisors that aren't complete TWITS (< insert a different vowel or remove the required constanant if applicable).

You know, have a promotion/recuitment policy such that you have a large proportion of real managers who have had hands on experience of the job rather than ones who have done nothing else since leaving "Manager School".
If there is one thing I used to hate when working for other people is that you were often made to feel that you must "live to work" (when most people really just work to live). If employees are to feel part of the company and if the company want to get the best out of the employee then they must be allowed to get involved if they want to and that means genuinely listening to their concerns and suggestions as a matter of policy (and perhaps being rewarded for them in some way).
It is surprising what kind of jobs some people will put up with for the sake of earning an existence on this planet but providing they are allowed to be truly happy doing it then that has to be good for everyone. Some people don't want to be deeply involved and are content to just do their time and then go home without having the feeling that they have been abused all day.

[Jerrek]

Originally Posted by Graham

1) As Gary has pointed out, some benefits may have tax implications either for the business or for the employee.



2) I'd ensure your business is up and running in a stable and consistent way before you start worrying about adding in extra complications.

I can't remember what you do, but what happens if demand is suddenly reduced? If someone else comes in to compete against you for your customers? Could you afford to maintain the benefits (which you may have contracturally obliged yourself to supply) given a reduced turnover?

I'm aware of all of these factors...

I'm not trying to put you off, but these are things that need to be considered. I'd suggest seeing a professional business advisor.

Well, see, I *am* the profesional business advisor... It is my major.


I'm merely throwing ideas around. I don't employ anyone at this time, nor am I considering benefits until the company's net income is over a certain amount. Not in the forseeable future, for sure.

[Jerrek]

Originally Posted by towny

It's great that you're considering these things before you even get started with having a business with employees. However, I have a (very) little experience in this area and I know that employees where I work would always choose higher wages above perks. So whatever you choose to offer, make sure you're not spending money on it that you could be putting in their wage packets instead.

Well, I am very much against wages. I firmly believe in performance-based salaries. No overtime either, unless you're a drone, which I doubt I'll need. You get the job done, and I'll pay you. You do a really good job, you get a bonus. (That is assuming I don't enter the manufacturing industry, which is a little different. I'm sticking to IT for now.)

I do realize money is important, which is why I'd have an "in lieu of benefits" option. You can redeem the remaining points in cash if would rather have it that way.

As for paid holidays - that's an odd one. Presumably this is not an employment right in the US or Canada (where are you planning to live once you graduate?). Over here, it's your legal right to get 20 days paid leave a year, although some employers can sort-of get round this if they jump through enough hoops.

That greatly depends on the province/state that the employment is in. In Ontario, it is 14 days after one year of employment. (20 is a lot...) I don't plan on remaining in Ontario due to the taxes and all the crap laws (like that one). Will probably move to Texas or Oklahoma.

[Jerrek]

Originally Posted by Stuartbe

How about free childcare ? Thats often missed out of the perks !

Yes I did forget about that. I'll add it to the list. All also add parental care for employeers whose parents are old and have special needs.

Originally Posted by Jerrek

That greatly depends on the province/state that the employment is in. In Ontario, it is 14 days after one year of employment. (20 is a lot...) I don't plan on remaining in Ontario due to the taxes and all the crap laws (like that one). Will probably move to Texas or Oklahoma.

20 days isn't considered generous in the UK, as it includes public holidays, of which there are 8 in each year. That means you are only entitled to 12 days on top of what you can expect as a matter of custom.

In practice many people do rather better - it's not uncommon for an employee to have 20 days paid leave, plus the eight public holday days, adding up to 28. If you get into management, you would normally have 25 + 8. In my current job I have 25 + 8 + 1 for five years' service.