Financial rewards through bonuses and raises are one of the many benefits to offer employees in your small business.
For any small business owner, it’s not easy to find and hire hardworking, dedicated employees. But once you do bring on those diamonds in the rough to help your startup prosper, it’s great to reward your workers for the time and effort they put into their jobs.
Consider offering these benefits to employees in your small business:
1. Serve up free food – lunches, snacks, etc.
Everyone likes to indulge in some free food once in a while. Whether you simply provide chips or have Friday lunches catered, there is never anyone out there who would turn down some free food at the workplace. You could do this for individuals who exceed your expectations on work assignments, or maybe you’re just in a cheery mood and want to share some cupcakes or bagels with those on your team. Some small food purchases can make a big impact.
2. Offer bonuses
Consider offering financial bonuses to your employees who deserve them most for their hard work and dedication to your small business. Let’s say your marketing manager goes above and beyond by getting you far more leads – and eventually sales – than you ever expected through innovative marketing methods. Give this person a nice $250 bonus, in addition to their regular paycheck. Remember that a bonus is taxable for the business owner, but it is generally classified as a form of supplemental wages.
3. Give pay raises
If one of your employees is extremely dedicated and does good work on a consistent basis, consider rewarding this hardworking individual with an increase in pay. You could also give raises on a regular basis, such as every 6 months or every year. Raises should not be given too frequently, however, as they should be based on an employee’s performance and productivity. In other words, only increase a salary when it is truly deserved.
4. Early release days on occasion
It may not be the most common type of reward or benefit, but employees in a small business never mind leaving work early at certain times. Let Bob leave at 3 p.m. instead of 5 p.m. on a Friday afternoon once a month if he performs at a high level. Let Jamie have a few extra vacation days to spend with her family throughout the year because of how many sales she has generated for your business. Just consider whether to compensate your employees for the hours they are out of the office.
5. Health insurance – medical, vision, dental, etc.
Health insurance is an extremely desirable benefit that most of us look for during a job search. You could offer traditional medical insurance, or you may add in vision and dental care as well. Since the passage of the Affordable Care Act, many small business owners have been financially strapped and unable to provide adequate health insurance to their employees. But if you can make it work, it can be a tremendous way to hire and retain some of the top workers out there.
6. Paid time off (PTO), paid vacations, paid sick leave, etc.
If you can manage to swing it, a great benefit to your employees is paid time off (PTO) and paid sick leave. It’s simply another way to reward those who help your small business prosper. Plus, if an employee endures a long-term illness or undergoes surgery, getting paid for sick leave is a big benefit to have.
7. Retirement plan, i.e. 401(k)
Finally, you may wish to offer a retirement plan to your employees to which your small business makes contributions. This may include a 401(k) or other type of pension plan. Make sure you are fully aware of the various rules and regulations attached with offering retirement plans, which are different for each plan. There are also rules related to taxes based on either contributing to or taking money out of such a plan.
Learn more about the best – and most affordable – benefits to offer your employees by teaming up with the business accounting experts at 1-800Accountant. Call 1-800-222-6868 or visit www.1-800Accountant.
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