While it is not the most glamorous part of owning a business, deciding on the wages and benefits you are going to offer employees is nevertheless a critical part of the process. These are often the top two factors people on the job market look into when considering whether or not to accept or even apply for a position at a company. You want to take care of your employees and give new and qualified people a reason to get in touch with you, but you also don’t want to put so many funds into benefits and wages that there is no room for profitability.
Knowing Your Options
When it comes time to decide what you are going to offer your employees, there are several things you need to keep in mind. First, you are required by law to provide a certain level of wages as well as certain benefits. However, there are other optional perks that can be used to attract the best talent to your business.
Covering Your Bases
Before you start working out any of the optional benefits you are willing to grant to your employees, you need to make a list of all the requirements issued for employers by the state and federal governments. Once you have these accounted for, you can proceed with confidence.
- Minimum Wage: This figure is actually a combination of mandates from both the federal government and from the state your business is in. The federal government has a base minimum wage that must be paid to all American employees, but the individual states also have their own additions that must be taken into account as well.
- Social Security: This is a kind of social insurance required by the federal government as a way of ensuring that individuals who reach a certain age and a certain number of years of employment are able to live out their retirement years without the risk of poverty.
- Workers’ Compensation: This is the one that every employer hopes he or she never has to deal with, even though the law requires it under certain circumstances. Workers’ compensation is financial protection for employees who are injured or made sick due to regular working conditions or a particular instance of employer negligence. It requires you to pay for the worker’s medical bills and prevents him or her from being fired for missed days due to the injury.
Sweetening the Pot
Once you have those fundamental business requirements taken care of, the time comes to decide whether you are going to include any other benefits to grab applicants’ attention. It is important to note that even just one of these additional employee benefits can have a massive impact on the level of talent your business attracts. Highly skilled workers are looking to get the most out of their experience. If you can appeal to that sense of pride and ambition, it can be hugely helpful in the long run.
Health Insurance is perhaps the most in-demand employee benefit today. However, if your business does not fall under the mandates of the Affordable Care Act, then you are not legally required to provide your employees with health coverage. However, if you believe you can afford to offer it to your workers, your business will become a much more popular choice for jobseekers. In addition to health insurance, you might also consider life insurance, corporate memberships, paid time off, wellness programs and retirement plans.
Getting to Work
The most important thing you should take away from all of this information is that when it comes to benefits and wages for your employees, you must first do your homework. If you make sure your company is on the right side of the law from the start, you’ll find that the road ahead will be much smoother, not to mention more profitable.
The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.