Home Leadership Turn Archives Me RampUp Solutions  
 

  • Categories

  • Archives
 

Do benefits cost or pay off?

by Miki Saxon

Scott Allen, The Guide for the Entrepreneurs section of About.com responded to a reader’s question about benefits for part time workers, explaining that in the US benefits aren’t required by law for any worker, full or part-time.

So why should companies have benefits? Just think about how much better their bottom line would be without them. Wow!

Then think about how demotivated, unproductive and disinterested their employees would be. Double wow!

The smartest employers offer all the benefits they’re able to offer to the people who work for them, even part-timers. Sure, they’re limited by financial consideration, but they do as much as they can.

  • A startup CEO told me that he had insisted on good insurance coverage in spite of his investors’ gripes. Why? Because, he said, his people were more willing to put in 80 hour weeks when they didn’t have to worry about their families. Interestingly enough, his company also offered slightly below market pay and far more modest stock options and still filled their openings with top talent (this was during a boom period, too).
  • Another small biz owner I know offers Aflac, exceptional working flexibility and just added a 401K, although many similar-sized companies just moan about how they can’t afford anything.
  • My friend, who owns a tiny, neighborhood restaurant, gives her waiters their birthday off with pay—and has almost no turnover.

Part of the problem in large companies is that Wall Street penalizes companies that do take care of their people (Costco) and lauds those that use every trick to avoid spending that money (Wal-Mart).

But make no mistake—taking the best care possible of your people will yield a high return in the form of lower turnover and higher productivity.

One Response to “Do benefits cost or pay off?”
  1. MAPping Company Success Says:

    […] Providing benefits can raise productivity and reduce turnover no matter the size or type of business. […]

Leave a Reply

RSS2 Subscribe to
MAPping Company Success

Enter your Email
Powered by FeedBlitz
About Miki View Miki Saxon's profile on LinkedIn

Clarify your exec summary, website, etc.

Have a quick question or just want to chat? Feel free to write or call me at 360.335.8054

The 12 Ingredients of a Fillable Req

CheatSheet for InterviewERS

CheatSheet for InterviewEEs

Give your mind a rest. Here are 4 quick ways to get rid of kinks, break a logjam or juice your creativity!

Creative mousing

Bubblewrap!

Animal innovation

Brain teaser

The latest disaster is here at home; donate to the East Coast recovery efforts now!

Text REDCROSS to 90999 to make a $10 donation or call 00.733.2767. $10 really really does make a difference and you'll never miss it.

And always donate what you can whenever you can

The following accept cash and in-kind donations: Doctors Without Borders, UNICEF, Red Cross, World Food Program, Save the Children

*/ ?>

About Miki

About KG

Clarify your exec summary, website, marketing collateral, etc.

Have a question or just want to chat @ no cost? Feel free to write 

Download useful assistance now.

Entrepreneurs face difficulties that are hard for most people to imagine, let alone understand. You can find anonymous help and connections that do understand at 7 cups of tea.

Crises never end.
$10 really does make a difference and you’ll never miss it,
while $10 a month has exponential power.
Always donate what you can whenever you can.

The following accept cash and in-kind donations:

Web site development: NTR Lab
Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivs 2.5 License.