Benefits 101

The Growth, Hiring, and Payroll Series will help give your company a much needed boost in order to further the efficiency of the day to day, week to week, month to month, and year to year process. Each article will discuss common tasks that companies face while maintaining compliance with federal and local law. Give your company a leg up over the competition and be sure to check out each article for valuable insights that will help get your company to the next level.

The Value of Benefits

The hemp and CBD industry is booming, but good hires are looking for more than just employment. And there's more that you can offer than you realize. The U.S. Board of Labor Statistics reported that 30% of the costs to employ a qualified candidate will go toward their benefits. These costs include medical insurance, paid time off, retirement plans, and non-monetary benefits such as schedule flexibility and an optimal work environment. Many quality candidates will look at the benefits package and their compensation when they are in search of long-term employment.

Medical Benefits

Medical benefits typically refer to health insurance but can also include vision and dental insurances. For many that are seeking employment, this is likely the most important thing they will be in search of. The U.S. Census Bureau has reported that although many are covered by some form of health insurance, there are still over 27.5 million people without. When an employee’s health is in optimal shape, they tend to lead a higher quality of life often leading to greater performance in the work environment.

In some industries, such as the construction industry, complete and comprehensive medical benefits packages are standard practice due to the amount of wear and tear that is put on the body. Small businesses and some industries don’t offer much of a medical package due to the significant costs of these benefits, but it is often a major differentiator for candidates considering opportunities.

Paid Time Off

This benefit is usually offered when an employee has been brought on as a permanent part of the team, but there are some places that offer this on the first day of hiring. This is a great benefit to offer because it provides potential candidates assurance that they won’t lose a whole lot of money if they become sick or injured. Paid Time Off Policies can include sick, personal, and vacation time as separate policies, or a consolidated version that include all reasons for time off. Some states, such as California, have specific Paid Time Off requirements that employers must meet.

Retirement Plans

401k is one of the most common retirement plans. The IRS has made a list of different kinds of plans available to anyone interested in their future retirement. Some other plans include different kinds of IRA’s (Individual retirement arrangements), SEP Plans (simplified employee pension), Profit Sharing plans, and many others. They walk through the pros and cons of each plan as well as any other helpful information regarding how the plans work. Many companies offer different plans, it could be important to know which plan works best and we recommend consulting with your accountant about the types of plans that would be most beneficial to your company.

Non-monetary Benefits

Many of the most creative companies today offer benefits at no cost or little cost to the company. These benefits are very important to entice qualified candidates. Schedule flexibility allows for a bigger pool of candidates that have outside obligations, such as children, but still have a desire to be a key member of the company.

An optimal work environment including a positive atmosphere and an ergonomically friendly workspace will prove that people get more accomplished when they feel comfortable and know the company values their well-being.

According to Inc.com employees that work at Google enjoy free food (I heard it’s pretty good), the opportunity to be around some of the world’s greatest intellects, opportunity to take advantage of cutting edge technology, anyone can bring their dog to work, free transportation to work, and many more non-monetary benefits. In the hemp space, employers often offer a relaxed culture with opportunity for career growth, as well as the opportunity to work with a product they are passionate about - Hemp!

While these perks may not be a part of the official compensation package, they should absolutely be considered and advertised when hiring new employees.

If you’re hiring employees, plan to be in it for the long haul because it often takes a few tries to get the right fit. The Growth, Hiring and Payroll series includes tools to empower you with Hiring Strategies, Contractors and Employee guidelines, Hiring Processes, Payroll information, and Benefits.

• Hiring Strategy will give you information which saves time and money

• Contractor Vs. Employees helps businesses to clearly define roles and maintain compliance

• Hiring Process will give you good ideas about a process that works for your business

• Payroll 101 will familiarize you with the process that is needed for compliance

• Benefits 101 will allow you to be the most competitive company for the most qualified employees

Be sure to check out all of them, your business and your personal well-being will thank you for it!

Payroll is hard, Gusto makes it easy

Here at Sonder Accounting, we partner with Gusto to make payroll a breeze for our clients. Check it out and feel free to reach out if we can support you in your payroll journey!