THE AVERAGE COST OF EMPLOYEE ABSENTEEISM IS $3,600 /YR/HOURLY WORKER AND $2,650/YR/SALARIED EMPLOYEE
(Source: Forbes)

We know that every employee will need a day off. Sickness, family emergencies, life in general will lead to an employee’s absence. Do we have to just “eat” this cost, or can we find ways to reduce absenteeism?

As business owners we know the value of our employees yet struggle with ways to provide benefits to reward their commitment to our customers and company. Investing in Employee Benefits can be complicated by taxes, accounting, competitor’s benefits, market trends, etc. Also, choosing the right balance of benefits is difficult with numerous offerings from hundreds of companies.

Benefit packages may include Health Coverage, Critical Illness, Dental, Vision, Accident, Short Term Disability, Term Life Insurance, and a long list of other options.  The critical issue is defining the value of the “benefits” to the company and the employees.

The IRS gives us Publication 15B – Employer’s Tax Guide which provides guidance on tax treatments for employee benefits (Section 2, 3). It is worth a bit of time to see how your company can benefit through the application of fringe benefits for your employees. (ALWAYS CHECK WITH YOUR ACCOUNTANT REGARDING TAX IMPLICATIONS!!!)

Many times the cost of the benefits excludes them from being offered. This destroys the best of intentions. However, the cost must be weighed against the value to your company, its strategic goals, and the relationships with your customers. Before developing a plan, consider cost and start with a budget that does not create a financial burden. A good advisor can help you select the mix of benefits to help meet your budget and goals.

Choosing a benefit advisor who will engage with you to develop a plan to provide employee benefits that create value for your company and its growth is a must. Benefit “Salespeople” are everywhere, but many times their strategy focuses on their wallet, not your company. So, look to a trusted advisor Richard Law, The “Law” of Insurance to develop benefit plans to help fuel your future.

Contact Richard here.