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Take five: beefing up your benefits package

In the beginning of the e-Commerce, dot-com boom, attracting qualified employees was a difficult task To tackle this problem, the definition of benefits broadened for most companies. From stock options to Foosball tables in the lunchroom, prospective employees were plied with offers that had never been considered a generation ago.

As we enter yet another facet of the e-Commerce economic reality, small business owners still find themselves competing with larger, deeper-pocketed establishments for the same employees. To get some insight into how business owners approach this challenge, we posed the following questions to successful entrepreneurs: "How do you add value to your benefits package without making it cost prohibitive to you? What creative ideas can you pass along to other entrepreneurs who want to offer attractive and competitive benefits packages, but are on a budget?"

Take five of the responses we received.

From Scot Johnson, President and CEO of i3solutions, an Internet consulting company specializing in creating custom-built e-Business solutions:

"Making your benefits package appealing is an unattainable task if the package is not aligned with your corporate core values, beliefs, and treatment of employees. We can only create a benefits package appropriate to our budgets, but the constant reinforcement of your core corporate values is the key to making it a success."

"We have created a flextime policy. It really doesn't cost the company any money, but it allows people to have a sense of responsibility. Coupling this with a corporate-supplemented gym membership gives your employees the ability to go to the gym according to their schedule and promotes both personal wellness and corporate time management. We have found this to be very successful because it forms a symbiotic balance between what you can do with your budget and how you implement your core company values."

Scot Johnson
sjohnson@i3solutions.com

From Rod Ford, CEO of Einstein Systems, Inc., an interactive e-Business consulting firm specializing in combining strategy, design, production, and promotion into a single client relationship:

"Each year, we have an associates meeting to explain the budget allocated for benefits for the upcoming year. Beyond the required insurance programs, we ask the associates, 'Where do you want to spend your discretionary benefit funds?' Without fail, the choices are always made around lifestyle improvement. Most of these programs are truly beneficial to the associates, without being cost prohibitive to the company."

"The following are some of the unique (discretionary) expenditures the associates elected for this year: Family Life Marriage Conferences - the company pays for couples to attend weekend marriage building/strengthening seminars throughout the year; At Home Bandwidth - we purchase DirectPC satellites for associates living in rural areas, allowing them to participate in a work-at-home program; Discounted Apparel Programs - we provide associates with an allowance for company logo apparel and discounts to additional items. This gives the associate some work attire and helps promote the company branding objectives."

Rod Ford
Rford@einsteinsystems.com

From Russell Miller, M.D., Orthopaedic Surgeon in private practice and Chief of Orthopaedics at St. Joseph Mercy hospitals in Michigan:

"I have found that in a medical office, the best employees are not only proficient in office management and insurance billing, but in patient relations as well. In addition to traditional health benefits, I treat my employees with respect, and empower them to make key office decisions in my absence."

"Our office environment is similar to that of an extended family. We celebrate birthdays, Christmas, and individual triumphs, and support each other in the face of personal tragedies. I believe that by recognizing the humanity and individuality of all of my employees, I encourage them to have the patience to handle my patients in a nurturing, professional manner."

Russell Wm. Miller, M.D.
bonedoctor@aol.com

From Harriet Hankin, president of CGI Consulting Group, Inc. an employee benefits design and administration company with experience in all phases of cost-effective employee benefits:

"Employer-employee communication is essential in the realm of employee benefits. Companies should partner with their employees in benefits discussions and provide education about the offered package.

"Additionally, businesses should shop around frequently for vendors of non-medical benefits. These markets are extremely competitive, and better deals are attainable if one is armed with information and competitor rates.

"Finally, businesses should look into free benefits, such as Health Fairs from local hospitals. By taking an interest in the welfare of your employees, you are showing them that they are valued, and in turn, are encouraging their loyalty."

Harriet Hankin
hhankin@cgiconsulting.com



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As part of our integrated HR solution, ADP TotalSource gives small and mid-size companies the ability to offer competitive, affordable health benefits from major national carriers. Our benefits experts handle annual open enrollment as well as new hire enrollment.

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