Having a happy employee is a good sign that you are a good boss. But saving your money is great too. So, how do you do both? It is good to add new benefits for your employees and it is also a great benefit to your company. It can make your business more attractive to other applicants, helps you to have a more loyal employee especially they won’t leave the company especially the ones that you want to keep and give you an edge against the competition. It can also help your business and your personal finances have a money saving opportunity.
Make your company’s benefits program stand out against corporative rivals by doing these 4 ways:
If you direct deposit to your employees, like offering electronic paychecks, it will save your company time and money. It will also give your employees the benefit that will make everything easier for them.
The (NACHA) Electronic Payments Association says that companies can save up to $3.15 per payment by using deposit instead of paper checks.
It is a big bucks that you can have. You can save a nearly $19,000 a year if you have 100 employees when you switched to electronic payments. Also, according to the NACHA even companies that have 10 employees can save too.
You won’t need to spend hours on the books and cutting regular paychecks because of those savings in the form of reduced administrative and processing costs. Technology plays a big part in these things. By using software payment programs, payroll processors or even your financial institution can help reduce the time of your employees doing things on the payroll issues.
Direct deposits are beneficial for your employees too. Three out of four employees who have this kind of benefit will use it according to the Consumer Federation of America survey.
Additional to this is that employees don’t need to leave work to deposit their paycheck during banking hours. A NACHA study says that employees spend up to three work day a year at the bank. And it is productivity that is happening as well.
Offer a 529 plan
One of the major concern for parents is saving for college. You can help your employees who have a child if you offer them a direct payroll contribution program to a 529 plan. Contribution to this account grow tax-free that is why employees like it. No taxed is owed for tuition and room and board.
Benefits consulting firm Hewitt Associates recent survey, nineteen percent of employers that have been surveyed said that they planned to use payroll deductions 529 plans to help their employees and another forty-six percent would want to consider a program.
Here is how you could start, some states offer more than one but some of the 50 states offer a 529 plan. You don’t have to use your state’s plan, but other states offer tax incentives and other benefits to residents.
SavingForCollege.com is one of the websites you can use to search about the 529 plans out there. It is a comprehensive site that allows you to compare plans side-by-side. It is important that you look for a plan that offers age-based portfolios. It will automatically shift funds to more conservative investments as your child grows older and also, look at the expenses and performance too.
You can also ask a financial advisor or call your favorite mutual fund company if you need professional help. You should know the plans that are purchased directly is much cheaper than the plans that can be purchased through an advisor.
Make retirement savings easier.
You will need the benefits package that competes with the big guy to make your business attractive to newly hired workers. That means, you also need a retirement plan.
It depends on the size and the type of your run, there are many options. You can save for your future too and employees will appreciate the opportunity to set some money aside for retirement.
Your employees can contribute funds pre-tax (it means that before the IRS gets its hands on those dollars) the investment will grow tax-deferred (no tax will be collected) until withdrawals begin whichever plan you choose.
Offering your employer matching funds, a few bucks for every few bucks your employee adds to the account, you can deduct the expense. You can also deduct the expenses associated with setting up and maintaining your plan.
Day Care Options
National Conference of State Legislatures reports that child-care issues are causing more problems in the workplace than any other family-related issues. Lateness and absenteeism increases and with 80 percent of the companies that is surveyed says that child problems are the reason why their working days are cut short.
Instituting an on-site child care center for your employee’s brood is a great solution that you can consider.
There are companies that have on-site day-care options for their employees. And you can see this at “100 Best Companies to Work For” and “Working Mother’s “The 100 Best Companies for Working Mothers”.
Parents will have the opportunity to have a safe place to drop off their children before work. Saving employees’ time is one of the benefits of this. And more likely, they would go to work on time. It is a great morale booster, especially for new parents that are just getting back to work.
You will invest in this but if many of your employees have children, this can help you to save money too by having to reduce turn-over and lost work days. But, then again, you can’t put a price on a happy employee.
Cover Photo Credits: Inc. Southeast Asia