It is important for employers to know that money is not the only — or most important — explanation for why employees leave companies. On average, only 12% of employees cite compensation as the reason for resigning.
Employees, however, do value benefit plans, perhaps more so today than ever before. To keep employees happy, plans are no longer limited to the traditional benefits such as health and dental. Many employers have adopted creative benefits to suit their employees and their organizational culture.
This article covers a number of benefits that you could provide to your employees, often with little or no cost to you.
(Note: some of these benefits may or may not be taxable to the employee and may or may not be deductible by the employer. See http://www.cra-arc.gc.ca/E/pub/tg/t4130/t4130-07e.pdf for Canada Revenue Agency’s Employers’ Guide of Taxable Benefits.)
Health and Medical Plans
The monthly or annual costs for employee health, medical and dental plans can vary depending on the benefits (individual or group) that you provide to your employees as well as how much the employee contributes towards them.
Private health services plans are also available where the employee is allocated an amount available to spend during the year on health and medical-related expenses. The spending limit given to each employee is determined by the employer and, hence, the amounts can be budgeted accordingly. This is similar to a pay-as-you-go plan for employers with a small administrative fee paid to the company that administers the plan for each claim made by the employees. The administration of the plan is typically handled by a third party.
Other Related Insurance
Other insurance to consider is disability, life, accidental death/dismemberment and critical illness insurance. Be aware of the possible tax implications as any claims paid out to the employee may be taxable to them if the employer has paid the premiums. Companies usually make the plan available to employees, but employees pay the premiums so that any claims paid are non-taxable.
Flex Days/Hours/Summer Hours
Providing opportunities for employees to work variable hours or days is a well-received benefit that many organizations offer.
Another option is a summer hours program where employees work more hours during the week and take Friday afternoons off.
Telecommuting
Telecommuting has become more mainstream as a benefit for employees in many companies. It is ideal for employees who can work on their own, for those who have significant family demands on their time, or for employees who have a significant commute to work. Most modern companies adhere to a culture of trust and realize that productivity can often increase when employees are given the option of working from home.
Fitness Memberships
Many companies now offer employees either discounted or fully paid memberships for fitness-related activities. This is a win-win situation for both parties since studies show that productivity is higher in healthy employees and costs to the employer decrease when employees embrace a healthy lifestyle.
Prepaid Legal
Prepaid legal is a relatively new benefit that has been gaining popularity over the last few years. It provides employees (in a group type setup) with benefits such as phone consultation with lawyers on legal matters, will and powers of attorney preparation, and tenant legal advice. This service helps employees deal with personal issues requiring legal consultation.
Another example is identity theft protection. In the event an employee has their identity stolen, this plan could save your employee(s) money and significant time, reducing the number of work hours spent trying to rectify the situation.
The relatively low monthly costs of these plans can either be paid by the employee (e.g., by payroll deduction), by the employer, or shared. However, these programs are not usually available to an individual on their own.
For more information, see http://wserver0.prepaidlegal.com/Multisite/JSP/corpgrp/grpregsel.jsp.
Paid Parking
Paid parking can be especially beneficial in areas where parking is expensive and may help offset the cost of commuting as the price of gasoline increases.
T2200
Providing an employee with a T2200 to allow them to write off mileage and/or other employment-related expenses can be beneficial to employees at tax time.
Party/Team Building Events
Team building events allow employees to get to know each other in a social setting. Many employees consider these to be a perk and appreciate the opportunity to make connections outside of the standard office environment. Some examples of these types of activities include barbecues, bowling, and company-organized volunteer days.
Treats
Having a specified day for treats — e.g., a pizza day once a month or muffins every Friday, gives employees something to look forward to.
Pension
Companies can implement a pension plan and/or RRSP matching program for their employees. Typically there are certain minimum dollar amounts before a financial institution will set up a plan.
Automobile Allowances/Transit Pass Reimbursement
These are possible options for employees who are required to travel on behalf of the organization or who need to commute a significant distance from their home base to work.
School/Education/Training Courses
Many employers pay for or reimburse employees for taking courses related to their position.
Low or No Interest Loans
Employers can give low or no interest loans to employees where appropriate; for example, to help purchase a car.
Vacation Time/Personal Time Off
Additional vacation time or personal time off can be provided as a reward to selected employees, and this doesn’t directly cost the company. It can be offered to employees, for example, who reach certain anniversaries, have worked significant overtime or completed important projects.
Another alternative is closing the office during slow periods of the year, such as between Christmas and New Year's.
TD1
Have employees fill out a TD1 form annually (see http://www.cra-arc.gc.ca/E/pbg/tf/td1/td1-08e.pdf). This will determine what kind of taxes will be withheld from each pay period.
Provide Day Care for Employees’ Children
Several larger companies offer day care to their employees. This can be a tremendous help to employees who have young children, especially if the day care is located on the employer’s premises, allowing employees to keep an eye on their children during breaks or lunch.
Sabbaticals/Leaves of Absence
Providing sabbaticals or leaves of absence to longer-term employees can serve as a reward to hard-working employees for their dedication and loyalty to the organization. An employee who returns from a sabbatical or a leave will be refreshed and have new insight about their work.
Seminars/Lunch and Learns
Some employers do seminars or “lunch and learns” for their employees on topics unrelated to their employees’ work. Examples include health and wellness, dress to success or financial planning seminars. These sessions are provided to help employees succeed, both in their work as well as outside their employment. Many financial planning advisors, for example, will offer to do a financial planning session at no cost to employees. Such sessions reinforce the notion that the company cares about its employees.
Contests/Prizes/Draws
Another low cost benefit can be a company holding a contest each week, month or quarter enabling employees to win a prize. An employee can be eligible for a draw based on points earned during the period, or by nomination, for example.
Conclusion
Ask employees (e.g., via a focus group) what benefits they want and at the same time determine how much budget you have for the introduction/implementation of any new benefit. The benefits you will want to provide will vary depending on the average age of your employees, the tenure they’ve had, your organizational culture, and your budget. Younger employees may be more interested in flex time/hours, while older employees may be interested in health benefits, so it’s important to revisit your benefits every year with your employees. This will ensure that your benefit plan is meeting the needs of your employees and will help determine if your spending is meeting your objectives.
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Marc Belaiche is a 1990 CA and is President of TorontoJobs.ca, an Internet recruitment business and recruiting firm. Marc has been in the recruitment industry since 1995. TorontoJobs.ca allows companies to post their positions online, search a resume database to find candidates, publishes a monthly TorontoJobs newspaper and provides full temporary and permanent recruitment services. It also allows candidates to search and apply to positions directly on-line and get career, interviewing and resume tips all at no charge. You can reach Marc at marc.belaiche@torontojobs.ca and check out TorontoJobs.ca at www.TorontoJobs.ca.
