Employee Benefit Strategies for 2007

With 2007 just around the corner, many companies are reviewing employee benefit packages for the new year. What strategies can companies use to attract and retain staff in 2007? Allison Stinson, Director of Business Development at Sterling Management Resources, encourages employers to address the needs of existing staff while developing a workplace that will attract top talent.

“Employees are key investors in the organization they choose to work for,” says Stinson. “They are investing knowledge, talents, time and energy to growing that organization, improving its products or services. Not unlike a savvy investor, they will strive to get the greatest return on their investment.”

The challenge facing HR departments is to create solid benefits programs tailored to meet workforce needs while maintaining costs, which often requires out-of-the-box thinking. Stinson offers the ideas below.

Give them Shelter

With the rising cost of home ownership, employers may want to consider adding a benefit program that offers down payment assistance toward the purchase of a home. Programs can be structured differently, but one approach involves the employee committing to work with the company for a certain number of years in exchange for monetary assistance for a home buy.

Maintain Balance

Benefit packages that improve work-life balance often motivate and attract talent. Stinson suggests that employers offer benefits like flexible schedules, job sharing and even on-site day care. She also recommends considering a “time-off exchange program” where employees earn an extra day off for the successful completion of a project that required more time than expected. Or give employees cash bonuses in place of earned time off.

Share the Wealth

Creating ownership for employees ensures loyalty and dedication to growth, and also engages employees in being more cost conscious. Large organizations can offer stock options and Employee Stock Purchase Programs (ESPPs) with a match; and smaller companies can create programs that reward employees with equity tied to a vesting schedule and set against annual performance reviews.

Build Skills

Stinson recommends including training and development benefits to satisfy employees’ desire for success. Employers may want to offer personalized assessment tools that allow staff members to identify areas for improvement, and then work with them to achieve their goals. Executive coaches, tuition reimbursement and prepaid certification programs are also motivating.

Spotlight Heath

Health and wellness benefits are a staple of employee retention, and they also serve to offset absenteeism and boost performance. Stinson suggests that employers negotiate gym or fitness club memberships for employees or consider agreements with alternative practitioners for reduced-price massages or acupuncture, both of which can relieve stress. Onsite chair massage is a great morale booster, as is the creation of a wellness library where employees can check out books, tapes and CDs to exercise, develop better eating habits or learn about other health topics.