Category Archives: Company Culture

The Benefits of Employee Benefits

Your people are the backbone of your organization’s ability to grow and drive revenue. So how important are quality employee benefits to achieving your company’s goals and objectives? They are extremely crucial.

Employees value a well-rounded selection of benefits, and health insurance, a 401(k) plan, life insurance and dental coverage are a few of the plans that you can consider offering.

The Benefits

Benefits packages offer value to your employees and help you boost productivity and retention in a cost-effective manner. Here are a few of the advantages of offering employee benefits as part of your compensation package.

Talent Attraction and Retention

Employees highly value a good benefits package. Developing a strategic benefits package that targets specific types of employees can help attract the right job candidates to keep your organization running at peak efficiency.

Once you have these top-performing employees at your company, providing a tailored employee benefits package will serve as a barrier to them leaving—a great benefits package can be a huge advantage when looking at retention strategies because it holds more than just monetary value for the employee. A bigger salary at another company likely won’t be as strong a pull for an employee tempted to leave if the other company’s benefits package isn’t as attractive as yours.

Healthy, Productive Employees

When your benefits package includes a combination of health insurance and dental and vision coverage, you will have employees who are able to take a proactive role in managing their health. They will have easy, affordable access to health care, reducing absenteeism due to illness.

When they are on the job, healthy employees are more productive than sick ones. It’s beneficial for your company’s productivity and your employees when they have access to medical coverage and time off when they are sick.

Satisfaction

A good benefits package leads to satisfied employees with higher morale. Employees who find value in their benefits are typically more willing to commit to their company because it helps make them feel valued—which leads to increased productivity and decreased absenteeism.

Efficient Use of Resources

Offering valuable benefits can help lower top employees’ expectations for salary. Many employees are willing to accept good benefits in lieu of a slightly higher salary.

This is an advantage to your budget because the value you present to employees with benefits, especially health insurance plans, can be monetarily equal to a raise in salary for them, while costing you less due to group rates and lower payroll taxes. Employers can avoid the hidden cost of paying extra payroll taxes on higher salary by instead offering benefits to provide similar value to employees.

Thinking Long-term

Even if you think you can save a little money in the short term by skimping on employee benefits, you will eventually face the consequences through a lowered ability to attract high-achieving employees, increased difficulty retaining your top performers, and lowered morale and productivity.

Offering a quality array of employee benefits will pay off through a stronger, more productive workforce with employees committed to your company.

Wrap Them up – Before Your Competition Does

Tom Peters, a best-selling author of many books on management, stated the following.
“Some employees are worth a lot of money…. some employees are worth a hell of a lot more money.”

Don’t think for a minute that your competitors don’t know who your best people are; they do. They also, by default, know who the “not so good” employees are. Every business remains vulnerable.

[To read more from CorpStrat’s Martin Levy’s article click here]

What happens in a thriving economy is the best employees to become highly sought after. They often pay no attention to how the economy is doing in general, but in a great economy, they know that they will have more opportunities. These are opportunities they do not have to seek out. What does it take to keep the best? It takes recognition, rewards, strategy, and commitment.

It’s an Employee Market

2019 marks the lowest unemployment rate in U.S. history. Those employed are valuable assets: those unemployed may be functionally unemployable – or simply not skilled and/or not trainable for various reasons. You have to retain to be successful.

Don’t Wait!

As a leader, you must be proactive because if you hesitate, or delay implementing or improving the size, shape and value of any “Golden Handcuffs” you are offering, your better employees won’t wait while you figure it out.

Golden Handcuffs

“Take away my factories, my plants; take away my railroads, my ships, my transportation; take away my money; strip me of all of these but leave me my men and in two or three years, I will have them all again.”  — Andrew Carnegie

 

A ‘Golden Handcuff’ is a way to describe a specific plan that addresses an annually funded tool to retain and reward a Key (or class of) Key employee(s) – but restricts their access over time.

In general, a Golden Handcuff is a selective executive accumulation plan offers customized to selected key corporate executives…a benefit over and above those provided to all employees by a qualified retirement plan or any other employee benefit plan.

This is typically a non-qualified arrangement (non-ERISA) between a corporation/entity and selected set of key executives in which the entity promises to pay the executive a specified benefit at a specified period of time, generally annually, with a restriction on the employees’ access to or vested interest in the accumulated asset. Most plans also have a survivor benefit to the executive’s family.

Get to work retaining and rewarding your top performers – before your competition does.

Hire to Fit Your Company Culture

The Value of Culture

Poor hiring decisions can be extremely costly for your company, in terms of business interruption, wasted recruiting and training resources, lower employee morale and more.

You may realize that an individual is not a good fit, or a new employee may choose to leave if the job doesn’t match his or her expectations. In both circumstances, many of these separations are due to the fact that the hired individuals did not fit the company culture and therefore lacked productivity, creativity and/or morale.

Culture is the unifying element that holds everyone in an organization together. Unlike an established mission statement, culture encompasses the written and unwritten behavioral norms and expectations of those within the company. Culture can set one company apart from others, and it can include the value of work-life balance issues, the way the company is organized, the extent to which leaders follow through on mission statements and many other factors.

team helping business grow

Companies looking to hire individuals that fit with their culture must first identify and understand it. For instance, if your organization recognizes personal achievements and awards individuals for a job well done, then a team-oriented employee might not be the best fit. But if your company values the total team performance versus the contributions of just one individual, then someone looking for personal recognition might not be as satisfied working for your company.

Ultimately, if the fit is not right between the company and individual, then both will lose interest and the relationship will probably fail.

Importance of a Good Fit

Finding employees who are a good fit for the organization produces the following benefits:

  • Improved employee retention.
  • Enhanced employee performance because most individuals at the company share similar values and aspirations. When people share a common purpose and similar attitude, it can encourage people to perform better.
  • Improved alignment from the top to the bottom and employees may view leadership more positively.

Screening to Find a Cultural Fit

Developing a screening process that integrates prescreening based on your company culture can be accomplished with the following steps.

  1. Ask employees at various levels of the organization how they see your company culture. Then, identify the similarities that arise among individuals—motivations, values, core competencies, etc.
  2. When you can identify what makes the organization successful, you will know what to look for during the selection process. This technique is also helpful in avoiding hiring discrimination allegations because you have defined the key characteristics of your culture, which help you logically and fairly justify your hiring decisions.
  3. Create a brand to describe your organization to potential employees.
  4. Depict your culture accurately so that candidates can filter themselves in or out based on how you describe the company. If they do not see themselves fitting into your culture, they may not even apply.
  5. To make branding more real for prospective employees, provide messages from executives, testimonials from various employees, virtual job tours, etc.
  6. Have candidates complete an online assessment as part of the recruitment process to screen potential candidates based on their qualifications, personality, and other factors. Use properly validated assessments that meet legal and professional standards.
  7. Ask questions about traits that you cannot or do not want to train someone how to do (being self-motivated, possessing integrity, etc.). Questions should determine if candidates have values and competencies that match with the company’s culture.
  8. Ask behavior-related questions and then rate open-ended answers on a scale.
  9. Ask for examples of situations in which candidates faced dilemmas or problems and successfully overcame them.
  10. Role-play during the interview process to observe candidates in action. Or, allow them to try out the position for a day to see if it seems like a good fit for them (and for you).
  11. This step would come after all interviewing is complete, and reference checks and resume verification checks are also done.
  12. Know the laws applicable to hiring.
  13. Create metrics for measuring cultural fit by determining cost-per-hire, time-to-fill, and quality-of-hire data.
  14. Make sure management is trained on how to properly interview for behaviors.
  15. Maintain accurate records of all your hiring decisions. During an audit or discrimination claim, you will need to produce valid justification for your decisions.
  16. Human resources should stay on top of monitoring, learning and studying the culture of the organization, and then design policies that align with the culture. HR should constantly be asking if the organization is truly what it claims, if it needs to modify the culture to be more competitive and if it is remaining compliant with all hiring laws.

CorpStrat’s Holiday Collaboration

Promoting Holiday Cheer

Clients got in on the action this year by participating in our company’s holiday promotion. A cardboard cutout that looked like an Instagram post was passed around offices to take photos with. The winner – GEAR MANUFACTURING – brought the card to their holiday party and had all the employee take photos with it – like a photo booth. Gear Manufacturing won a pizza party for their entire office on us. Read more for tips on how to better promote all types of events amidst the holidays.

CorpStrat Holiday Event x Dodgers Stadium

 

Coordinating fun and interesting holiday events to involve your entire internal company requires planning ahead of time. This plan should aim to cover the basic wants of your office; theme, venue, time, date, guest count, food and beverage, and agenda.

An event such as one like we executed last year at Pino’s Palette, which brought the entire office together to paint and drink vino was a total hit for everyone!

Team CorpStrat in the Dodgers dugout.

This year, we coordinated an evening to enjoy a nice meal at one of our favorite Chinese restaurants before attending a private tour of the Dodgers stadium.

It’s not your conventional company holiday event, though, our staff seemed to really appreciate the unique experience we put together.

It was at the stadium where we toured the Dodger’s field, dugout, press box, trophy room, and more.

Holiday events like this may not be feasible for large-size companies, but it’s those that fit your business culture, bring the company together, and put everyone in great spirits, that are the best ideas of them all.

Team CorpStrat in front of the Dodgers sign.