Attracting and retaining good employees
is never easy. But the right benefits package can make working for your
shop more appealing. Here are some ways to spruce up your employee
benefits-often without spending a lot of money.It's virtually impossible to attend any
gathering of shop owners without hearing some discussion about employees.
The shop owners who aren't having trouble finding good employees are
worried about hanging on to the ones they have. For many shop owners,
finding and keeping good employees are daily concerns.Attracting top-quality employees and
developing their loyalty is very similar to marketing to customers. The
key is to set yourself apart from the competition. There's no shortage of
ways to set yourself apart from other employers, just as you can compete
for customers in any number of ways. Some employees are looking for better
working conditions, a chance for advancement, a job close to home or the
opportunity to work for one of the area's "best" shops. For
others, it's the bottom line-their paychecks are their first and foremost
concern.But one of the most cost-effective ways to
set your shop apart in the minds of employees and potential employees is
with the benefits package you offer. The right combination of good working
conditions and a unique, attractive benefits package can often lure top
technicians, even if a shop up the street is offering higher per-hour pay.The beauty of many employee perks or
benefits is that they don't have to cost an arm and a leg to have impact.
Often, some of the least expensive employee extras are the ones they most
appreciate and that do the most for their overall job satisfaction. It's
just like the customer who picks up his car after a $3,500 repair-and
comes back to thank you for cleaning the interior. Little things count.Here's some information on a wide range of
employee benefits that collision repair shops and other small businesses
around the country are offering. Some may be better suited to this
industry than others. And some may sound just plain strange at first. But
think about an idea before you disregard it: Offering something different
from every other shop in your area might be what helps you find those
top-notch techs and what keeps them from moving on to your competitor.Shake up the ScheduleOne shop owner swears he could drop his
group medical plan, reduce the number of paid vacation days and stop
handing out end-of-year bonuses and still not lose an employee. Why?
Because, he says, he's found the one thing his employees want most:
three-day weekends.The shop's crew works nine-hour
days-allowing the shop to extend the hours it is open for customers-but
everyone gets every other Friday off. Having only half the team on Fridays
occasionally results in some confusion or problems, the shop owner
reports, but the schedule is so popular that everyone pitches in to cover
the bases. Productivity has held steady and is often higher than it was
under the old 8 a.m. to 5 p.m. schedule.Join the ClubProviding employees with free or
discounted memberships is something that can benefit their families, too.
Look into business or group membership rates at nearby health clubs,
warehouse shopping clubs, or golf and sports clubs.Finding a credit union your employees can
join may help them get loans, no-fee checking and savings accounts, and
direct deposit of payroll checks. This is a benefit that usually won't
cost your business a dime. To locate a credit union, check your local
phone book. In addition to a list of area credit unions, you may also find
a listing for a credit union league or association that can help you find
a credit union you qualify for.That's the TicketWith movie ticket prices topping $9 and
$10 in many areas, taking the family out for a weekend evening isn't
cheap. Offering free or discounted movie tickets can be an extremely
popular employee benefit. Call a local theater chain to find out about
buying tickets in bundles-often at half the regular price. You can give
the tickets to employees or just offer them at the discounted price.You may also be able to obtain group
discounted tickets for concerts, theater productions, sporting events,
auto shows and other local events. Getting your employees out of the shop
as a group for an evening or Saturday event can help build morale and
camaraderie, especially when the boss picks up the tab.Also check into the availability of
discounted group tickets for local college or professional sporting
events. A number of shops have found their employees prefer a company
night at the ballpark with their families to the traditional company
picnic, and this is often easier and less expensive for the company.If you have an active group of employees,
challenge other shops to a softball tournament, or sponsor an employee
bowling team. (The right uniforms also offer some advertising benefits.)Rent a van or mini-bus to take a group on
a ski trip or to a nearby lake, beach or resort. Look into a river cruise.
Or just treat everyone to a dinner out, whether it's pizza or prime rib.One word of caution here: Spending an
evening with the boss may not be viewed as a benefit to all employees.
Consider making any shop group activity optional, so that no one feels
you're intruding on their free time.Help Them Prepare to RetireSetting up a retirement plan for your
employees may not be as complicated or expensive as you may think, and you
may find that it actually helps you save more for your future and reduce
your tax bill now.A traditional 401(k) plan allows employees
to put up to 15 percent of their pre-tax pay (up to $10,500 a year) into
an investment account, choosing from a number of different types of
investments included in the program. As an employer, you can choose if you
want to match some percentage of their regular contributions, contribute a
lump-sum of year-end profits or neither.The employee owns any money they
contribute to the plan, but you can establish how long they have to work
for you to be vested, or own, the money you contribute to their accounts.
The amount of your pre-tax income you can put aside in such a plan is
based on how much your employees contribute.The fees for this type of plan can be a
little high, especially for businesses with fewer than 10 employees. You
may instead want to consider a Simplified Employee Pension (SEP) or
Savings Incentive Match Plans for Employees (SIMPLE), which as their names
imply, are generally simpler and less expensive to set up and maintain.
These plans do require the employer to contribute a set percentage of
every employee's wages to their accounts, but you can change that
percentage from year to year with the SEP.According to a 1998 study, about one in
three collision shops offer employees a retirement plan. That's almost
twice the number that did just three years earlier, so the percentage is
probably even higher now. But if you're not convinced it's a benefit worth
investing in, you could still offer employees some retirement planning
help by asking your personal financial adviser to offer them some
lunchtime mini-seminars or free consultations.At Your ServiceCheck with the service providers you work
with to see if there are ways they could help your employees at little or
no cost to you. Let employees know, for example, that you offer a free
initial consultation with a financial planner, tax preparer, real estate
agent, stock broker or accountant.An employee assistance program (EAP) is
another way to help your workers receive free, confidential help with
problems that are affecting them while they are at work. Available through
some trade associations (or check the phone book under "Employee
Assistance Programs"), EAPs allow employees covered under the program
to dial one hotline to receive help with family and relationship concerns,
drug and alcohol dependence, depression, financial crises and other
personal pressures. The EAP staff may provide counseling services or may
serve as a clearinghouse of information, guiding the employee to resources
available-often at little or no cost-for their particular situation.
Employers are not told when their employees use the program.Shops enrolled in an EAP pay an annual
per-employee fee-often under $50. That small investment may help shop
owners keep good employees who may be having some difficult personal
problems, and it keeps you from having to become an amateur social worker
if employees bring such problems to you.Give Your Medical Plan a TwistTry to offer a medical plan that best fits
your employee's needs. If most of them are single, offering family
coverage might not be seen as a real benefit. On the other hand, if most
are married, they might be willing to live with a higher deductible in
order to have their families covered.Dental and vision plans, though sometimes
expensive, are other extras that your competitors may not offer. If these
are coverages you feel employees would appreciate, consider adding them,
and perhaps raise your medical deductible to help offset the additional
cost.Also ask your insurance carrier about
discounts available for an employee wellness program. This may make it
more economical for you to offer family coverage to those meeting low-risk
criteria (such as non-obese, non-smokers).You might also look into dropping your
traditional health insurance plan and switching to medical savings
accounts (MSAs). Under most MSAs, the employer buys a catastrophic health
insurance plan to cover workers' medical costs. It might have a deductible
of $3,000, meaning it wouldn't pay anything until a worker's medical costs
surpassed that amount in any given year. But after that, everything would
be covered.The employer then sets aside $2,000 in
each employee's MSA. If a worker gets sick, the bills are paid from his or
her MSA as long as it lasts. If the bills surpass $2,000, the employee
would have to pay up to $1,000 out of pocket until the catastrophic policy
kicks in. Under the plan, the employee may be able to receive any cash
left in their MSA at the end of the year, or they may be able to roll it
over to let the account build up for the future.Proponents of MSAs say they give the
individual more freedom and personal responsibility because they can use
health care providers of their choice. They say people make better health
care choices when they control the purse strings. But opponents argue that
some employees make poor care decisions because of the promise of getting
cash back.You'll want to talk to your accountant
about any state laws or tax implications involved with switching to an MSA
plan. MSAs can be confusing for employees at first, too, so make sure you
receive the printed materials and other help you need to explain it
thoroughly.Spruce Up the Employee LunchroomJust as the cleanliness and
professionalism of your front office can have a big impact on how
customers view your business, the type of employee lunchroom you provide
sends a message to your workers about how you feel about them.It doesn't have to be fancy, but keep it
clean and adequately furnished. Consider providing a refrigerator,
microwave or coffee pot if you don't already. If you already provide
these, consider picking up the tab for a higher-quality coffee-upgrading
from Folger's to Starbuck's won't cost a lot but may really be
appreciated. A water cooler can be a nice plus and can help encourage
employees to replenish liquids on those hot days in the shop.Sign Up NowCheck out the autobody classified section
of your local paper, and you may find that some shop has latched onto a
method that many businesses use to lure top talent: the signing bonus.
Once we hire you and you move in your toolbox, the ads state, you receive
a check for $500 or more. The up-front cash attracts attention and can be
money well spent if the shop receives more and better applicants with
fewer ads.Again, a signing bonus can make coming to
work for you more appealing than the other shops advertising for help and
might convince a top-notch technician that it's worth a little longer
commute or a little less per hour to work for you rather than someone
else.Caring for Young and OldWhile primarily only larger companies now
offer much in the way of child care or elder care, this is changing. Being
among the first shops to offer such benefits could be to your advantage.Finding and funding adequate care for
children or for ailing parents can be a tremendous burden, one that can
affect employee performance. Employers can assist in a number of ways. At
the inexpensive end is offering resources or referral services that help
employees find the care they need. Other businesses take it a step further
and pay for or subsidize such care.Vacationing in a Bank?One employee might like to forego his
second week of vacation in order to have some extra money to spend on the
trip he wants to take during his first week of vacation. Another employee
might like a third week of vacation this year because he has a new baby at
home.Vacation banks can help out both of these
employees. Vacation banks allow an employee who wants more time off to
"buy" it from the company. If an employee would rather have some
cash, he can sell vacation time back.Some businesses also combine vacation time
and sick time and lump it together into paid time off (PTO). Employees can
use PTO as they choose, without distinguishing between sick or vacation
days. Hewitt Associates, a national benefits consulting firm, found in a
study that the PTO plan reduces absenteeism. It also can result in savings
for the business if the total amount of PTO is reduced when vacation time
and sick leave are lumped together.Don't Forget about TrainingToo often, employers don't do a sufficient
job communicating to employees that the training the business pays for is
a true benefit. If that training helps them be more productive, everyone
benefits. If that training helps the shop bring in more business (by
qualifying the shop for a direct repair program (DRP), for example),
everyone benefits. And if that training helps the shop meet customers'
needs, everyone benefits.Set up your training benefits just as you
would any other part of your budget and benefits package, and make sure it
is explained in your employee handbook or policy manual. Consider offering
a set amount of training or tuition assistance per year.Some shops pay for training up front.
Others reimburse the employee for the training after a set period of time
to avoid having an employee leave the company immediately after receiving
the training.Some shops also require employees to earn
a certain grade, pass the training course exam or otherwise demonstrate
that they didn't just sit through the course, and others ask employees to
share the information they gained with others in the shop, either in a
formal or informal way.Encourage employees to let you know about
training opportunities they think would be of value. And whether or not
you pay for some or all employee training, you can always tie wage
increases to successful completion of training or certifications.Mini-MotivatorsKeep a supply of gift certificates on hand
to give to employees who go "above and beyond" their job
description in order to help a customer or to ensure a job is completed.
It doesn't have to be expensive-even a $5 or $10 gift certificate can buy
a lunch, a couple of movie rentals, a meal's worth of groceries, ice cream
cones for a family, etc. Matching the reward to the person can have an
even larger impact. Get to know your employee's individual interests
(golf, fishing, etc.), and use gift certificates they'll really
appreciate.Help Employees Save MoneyYou can't always pay them more, but you
can help them get more for their money. Work with merchants in your area
to provide employees with discounted products and services. Convince your
bank to offer lower-fee checking accounts. Ask a cellular phone provider
to offer a special monthly discount. Arrange for discounts on tires or
other automotive products not available to employees through the shop.
Offer discounted newspaper subscriptions by having multiple copies
delivered to the shop. Allow them to order flowers or balloon bouquets for
their spouse or children with a discount from a local florist.There's even a national buying group that
can help smaller businesses offer these kinds of discounts to their
employees. The Illinois-based Employee Services Management Association has
about 3,000 members and 50 chapters throughout the country. An annual
membership fee of about $165 allows members to offer their employees
discounts on a wide range of products and services-travel, admission to
Disneyland, baby car seats, wedding invitation printing, etc. For more
information, check out the organization's Web site at www.esmassn.org or call (630) 368-1280.Get Them Out of the ShopEmployees want to feel that they're on a
winning team. Taking employees to such industry events as association
meetings, trade shows and seminars can make them feel part of the bigger
picture. Having a group there in "uniform"-company hats,
T-shirts or jackets-can boost morale and communicate to other potential
employees that your shop is among the best in the industry.Impact the FamilyYou may get more mileage from your perks
if they are something an employee's spouse or family enjoys and looks
forward to as well. Rather than a third week of vacation for long-term
employees, why not give them airline vouchers or gift certificates for a
ski lodge, casino/hotel or other resort? This can help ensure they
actually take a vacation with the time off, you've cut down the time
they're away from the shop, and their spouse or family will value their
continued employment with you.Other benefits that may help you please
good employees and their families include arranging for free or discounted
house cleaning services, having fruit or food baskets delivered to their
homes, offering use of your personal or company-owned condo or vacation
home, and offering some flex time to allow employees to attend school
other family-related events.If you're feeling overwhelmed by the
number of choices available as you consider your shop's employee benefits
package, help is not far away. The people who can best help you decide
what will be valued are only steps away-out in your shop. Ask your
employees for feedback on the benefits you currently offer and for their
suggestions on changes or additions to the package. You'll find out very
quickly which benefits will best help you find and keep the top employees
you need to run your business.
