As a small business owner balancing expenses can be a complicated subject. This is especially true when it comes to your employees. Offering paid sick leave and vacation time can take a chunk out of your bottom line. Although the benefits to your employees for a variety of reasons might outweigh the costs you incur. People who work hard for you deserve to have paid time off to recharge and unwind. They will perform better for you overall when they can take the time off they need. This is vital with sick leave, because people have families that depend on them. It’s not always solely about the employee. If they have an ill child at home who needs them, they can’t focus on their work even if they are at the job. The Bureau of Labor Statistics says that up to 90 percent of companies offer their staff benefits packages. Here’s what you need to know about making the investment to add an employee benefit package, when you run a small business.
A Good Employer Is Sensitive To a Work- Life Balance
As an employer who is sensitive to an employee’s work-life balance, you’ll reap the benefits. The better you treat your employees, the more loyal workforce you’ll have for the long run. Small businesses thrive from valuable employees. Psychology Today even goes as far as saying that the proper work-life balance also helps individuals, families, and communities operate better as a whole.
Plus, if you aren’t offering decent employee benefit plans, you run the risk of your employees looking elsewhere for work. There are always greener pastures and better working environments out there from savvy companies. The last thing you want is to get a great employee trained and productive and then loose them to a competitor. Then it’s back to the drawing board to hire a new employee.
Think About How Much Time Off You’re Offering
Employees are usually given a specific time off with an employee benefits package, when they have worked a certain number of years. You can decide as a small business owner what that time frame might mean in your company. Maybe you want to offer 5 days paid vacation after a year of service? Six months? Or you can offer that time after a 90 day new hire evaluation period. It’s up to you on what you’re comfortable with. Small business benefits from working with their employees to make everyone happy with vacation time or paid sick days.
Obviously you want your good employees to stay on as long as possible increasing their vacation time at the right increments. After 3, 5, or even 10 years are good points to look at when thinking about incremental increases. Keep in mind these kinds of benefits are usually only offered to full time employees. Most companies don’t give part time employees this consideration.
Having The Right Benefit Package Boosts Retention
This can’t be stated enough. Having a sound employee benefits package in place will boost retention. That might be reason enough to consider adding on a plan. Having to replace key employees routinely hurts your budget. There is looking for a new employee with time killing interviews, training that takes time, and a general loss in productivity when you have to be on the lookout for new hires all the time. Keeping your staff in place can make your small business run much better. Your people are more likely to perform for you if you value them. Giving them the right benefits package is a part of this plan. They will look forward to their paid time off or vacation time, as something to work towards.
Project Time Off is an initiative that has funded many research studies that show how beneficial time-off is for an employee and how that behooves the companies they work for. It’s a campaign that focuses on the benefits of earned time off to avoid burnout, unused vacation days, and boosting communication between employees and management. A healthier, well rested workforce benefits the economy as a whole, which is why Project Time Off set out to better the American work culture with their research on employee benefit plans.
The Only Downside To Consider
Your bottom line is the only downside. When you are paying an employee who is on paid leave or their vacation time, that’s money out the door without having the employee’s productivity working for you. You just have to figure out other ways to offset this expense. Your employees will work harder and thank you for it.