Better Benefits = Better Employees
Written by Eric Petersen, CIC
We often get asked about employee benefits and if there are any creative ways for tree care companies to offer benefits without breaking the bank. So for today’s business tip, I went straight to one of our referral partners, Jack Brees of RC Risk Advisors and had a great conversation that every tree care company should hear about!
Q: How do Voluntary Benefits help retain and recruit great employees?
A: As a business owner in today’s retention and recruiting environment, having something that distinguishes you from the other employers can make it easier to recruit and retain employees. If salary and job type are equal, voluntary benefits are an area that separates your company from the rest and could make the choice that much easier for the job seeker.
Q: What are the common Voluntary Benefit plans/programs that tree services purchase?
A: Voluntary benefits such as: Short Term Disability, Life Insurance, Accident plans, Hosptial Plans and Critical Illness plans help the employee navigate out of pocket expenses and are what is typically offered and accepted by tree service employees.
Q: Do employees need to pay for Voluntary Benefits out of their own pocket?
A: Not any more! While being in the Voluntary business for the past 15 years, employees have typically paid for these benefits, however, RC Risk Advisors has built a partnership with a Wellness Company that implements a Wellness program that ultimately unlocks tax savings to the employee that are then earmarked for the purchase of voluntary benefits. As an added bonus, the business owner also will realize a sizable tax savings per employee annually.
Q: Can you give an example of the estimated tax savings for a tree service with 9 employees?
A: Take a business that has 9 employees, once this tax savings program is implemented the business will receive on average $150 a month in savings per employee to spend on voluntary benefits, ($1,800 a year). The business will also experience, on average, $500 of tax savings per employee annually. Add those numbers together and the total tax savings would be approximately $20,700 annually! In both cases, the employee and employer can choose to pay more taxes or use those monies to purchase voluntary benefits that could help their families with out-of-pocket expenses.
If you have been thinking about bolstering your benefits or want to figure out a way to get creative with what you offer, please reach out to Jack and ask him about how voluntary benefits could fit in with your company!